Science Based Targets (SBTi): How to Set Decarbonisation Goals Aligned with the Paris Agreement

Corporate decarbonisation is no longer a strategic choice—it has become both a regulatory and reputational requirement.

Since 2024, more than 4,000 global companies have committed to targets validated by the Science Based Targets initiative (SBTi), a standard that demands methodological rigour, transparency, and full alignment with a mitigation trajectory compatible with the Paris Agreement’s 1.5 °C limit.

In Europe, regulatory pressure (CSRD, the EU Taxonomy, and EFRAG guidelines) is pushing companies across all sectors to set robust, auditable, science-based reduction targets. In this context, SBTi has become the most reliable framework for defining credible and verifiable decarbonisation goals.

In this article, we present a practical guide for companies to understand what SBTi is, how its methodology works, how to calculate science-aligned targets, and how to streamline compliance through high-quality carbon footprint data.

What is SBTi and why is it the most reliable standard for setting decarbonisation targets?

The Science Based Targets initiative (SBTi) is the international framework that verifies whether a company’s emission-reduction targets align with the scientific pathways required to limit global warming to 1.5 °C.

SBTi ensures that corporate targets are not arbitrary but fully consistent with IPCC climate models and the sectoral allocation tools developed by the International Energy Agency (IEA). This framework makes it possible to compare companies, guarantee regulatory credibility, and demonstrate real contributions to global decarbonisation.

Why has SBTi become the dominant standard?

SBTi has become the dominant standard because it provides the only framework capable of translating climate ambition into quantifiable, auditable targets directly aligned with IPCC science.

While many corporate climate commitments remain generic or voluntary, science-based targets remove ambiguity and establish a reduction pace consistent with the 1.5 °C pathway.

This methodological precision—combined with regulatory pressure from the CSRD and the explicit preference of investors and auditors for validated targets—has made SBTi the global reference for demonstrating real, not narrative-based, decarbonisation.

Moreover, SBTi provides a common language that facilitates dialogue between regulators, companies, and stakeholders, reducing strategic uncertainty in carbon-intensive sectors such as energy, heavy industry, and transport.

How does the SBTi methodology work?

The SBTi methodology is based on a standardised process that translates a company’s carbon footprint into science-aligned reduction targets. It combines rigorous measurement, recognised mitigation models, and external validation to ensure credibility and alignment with the 1.5 °C scenario.

Here is how the SBTi methodology works step by step:

1. Comprehensive quantification of the corporate carbon footprint (Scopes 1, 2, and 3)

The SBTi process begins with a full emissions inventory following the GHG Protocol. It includes direct emissions (Scope 1), purchased electricity (Scope 2), and all value-chain emissions (Scope 3).

The accuracy of this calculation is essential, as it determines the robustness of the subsequent targets.

2. Allocation of reduction pathways based on recognised scientific models

Once the footprint is defined, the company applies scientific pathways from the IPCC and IEA. These curves determine the exact reduction pace required for each sector, avoiding arbitrary goals and aligning corporate strategy with the 1.5 °C scenario.

3. Setting short-term and long-term targets

Based on these pathways, the company establishes two levels of commitment:

Near-term targets (5–10 years)

Reductions before 2030 that ensure immediate action and verifiable progress.

Long-term net-zero targets (up to 2050)

Objectives to reach net-zero emissions by 2050, prioritising real reductions and allowing offsets only for residual emissions.

4. External validation by the SBTi technical team

SBTi reviews the calculations and consistency of the targets. External approval provides regulatory credibility and demonstrates alignment with climate science.

What does SBTi require for target validation?

SBTi sets mandatory criteria that companies must meet without exception. These requirements ensure that targets are measurable, science-based, and capable of demonstrating real emissions reduction.

They also act as a methodological filter that prevents weak commitments and ensures every target is backed by verifiable data and robust trajectories.

The most relevant requirements are:

1. Mandatory absolute reductions

All companies must reduce their absolute emissions by a minimum of 4.2% per year, equivalent to a 42% reduction in 10 years.

2. Inclusion of Scope 3

When Scope 3 represents more than 40% of the total footprint, companies must set specific value-chain targets.

Given that many sectors (fashion, food, logistics, technology) see more than 90% of their emissions in Scope 3, this requirement means that practically all companies must measure and manage their supply chains.

If your company does not yet have a reliable system to calculate Scope 3, we recommend reading our guide: AI in Scope 3 Calculation: How to Overcome the Supplier Data Barrier.

3. Mandatory near-term targets

All companies must define near-term targets with a 2030 horizon.

4. Net-zero targets

Organisations that wish to communicate climate neutrality must also validate long-term targets aligned with 2050.

What are the benefits of adopting SBTi?

Adopting science-based targets not only strengthens a company’s climate strategy—it also generates measurable regulatory, financial, and reputational advantages.

SBTi acts as a competitiveness accelerator by transforming decarbonisation into a tangible driver of risk reduction, operational efficiency, and corporate value creation.

Below are the main benefits:

1. Guaranteed regulatory compliance with CSRD and the EU Taxonomy

Companies with SBTi-aligned targets automatically match their reduction pathways with the transparency and mitigation requirements of the CSRD and EU Taxonomy, simplifying audits and reducing non-compliance risks.

2. Improved access to sustainable finance

Banks and investment funds use SBTi as an eligibility criterion because it provides a verifiable methodological basis. Organisations with validated targets usually access better financing conditions and performance-linked incentives.

3. Reduced reputational risk related to greenwashing

External SBTi validation removes ambiguity in climate commitments and provides credibility with consumers, media, and investors, significantly reducing exposure to greenwashing accusations.

4. Operational cost optimisation

Meeting SBTi requirements often demands structural measures such as energy efficiency, electrification, and renewable adoption—actions that generate direct savings and strengthen competitiveness.

5. Increased brand value

Science-aligned companies project a stronger, more reliable reputation, improving brand perception and consumer preference.

6. Alignment with institutional investor expectations

Large investment funds consider SBTi the benchmark for assessing a company’s climate maturity. Having validated targets facilitates access to capital and reduces strategic uncertainty among shareholders.

How to set SBTi targets step by step

Setting SBTi targets requires following a structured process that ensures scientific rigour and full alignment with the 1.5 °C scenario. Each phase—from footprint calculation to final validation—defines the strength of a company’s climate commitment.

These are the steps every company must follow to set science-aligned targets:

1. Calculate the full carbon footprint

Quantify Scope 1, 2, and 3 emissions following GHG Protocol and using auditable emission factors.

The quality of this inventory determines the accuracy of the targets.

To dive deeper into scopes, consult our article: The Scope 3 Challenge: Practical Guide to the GHG Protocol’s 15 Categories.

2. Select the appropriate methodology

In sectors with an SDA (Sectoral Decarbonisation Approach) tool—such as aviation, automotive, real estate, or energy—the company must apply that method.

In all other cases, the required method is the absolute contraction approach (ACA), which defines uniform absolute reductions.

3. Set the base year

Choose a year with complete, representative, verifiable data.

4. Set near-term targets

Short-term goals must specify concrete reductions before 2030, either in absolute or intensity terms, depending on sector-specific guidance.

5. Set net-zero targets

Organisations must outline their pathway to net-zero by 2050, prioritising real reductions and limiting offsets to no more than 10% of residual emissions.

6. Prepare documentation and submit it to SBTi

Once targets are defined, the company compiles technical documentation and submits it for review. Validation typically takes 30 to 90 days.

Common mistakes when setting SBTi targets (and how to avoid them)

Setting SBTi targets requires methodological precision and correct interpretation of the official criteria. Many companies, however, make recurrent mistakes that can delay validation or undermine the credibility of their climate commitments.

These are the most common mistakes:

1. Underestimating Scope 3: 76% of companies that fail validation do so because of errors in Scope 3.
2. Using unofficial emission factors: This generates inconsistencies and delays validation by an average of 2.5 months.
3. Not integrating SBTi into financial strategy: Targets must be reflected in budgets, investment plans, and CAPEX decisions.
4. Setting targets without scientific backing: SBTi rejects generic commitments without detailed mathematical justification.

Science Based Targets: Why acting now ensures a competitive advantage

Companies that adopt science-based targets earlier than their competitors experience measurable benefits in access to finance, reputation, cost reduction, attractiveness to young talent, and regulatory robustness.

The window for action is narrow: by 2030, 92% of major European groups will have validated targets.

Companies that do not join this shift will compete in a more demanding market, facing tighter regulation and increasingly rigorous customers and investors.

If you need support calculating your carbon footprint or designing your SBTi targets, Manglai offers tools aligned with the GHG Protocol and the EU Taxonomy.

FAQs about Science Based Targets (SBTi)

Is adopting SBTi mandatory?

Not legally, but companies subject to the CSRD must demonstrate science-aligned targets, and SBTi is the most reliable and recognised method.

Does SBTi allow offsets?

Only for net-zero targets and only to compensate residual emissions, with a limit of around 10%.

How much does validation cost?

Between €4,000 and €15,000, depending on company size and complexity.

Do targets need to be validated every year?

No—validation occurs once, but companies must report progress annually.

What happens if targets are not met?

Companies must justify deviations and may be removed from the official SBTi list.