Science-based targets (SBTi): how to set decarbonisation goals aligned with the Paris Agreement

Science-based targets are emissions-reduction goals whose pace aligns with what climate science deems necessary to limit global warming to 1.5°C, the central threshold of the Paris Agreement. The Science Based Targets initiative (SBTi) is the organisation that defines the method and validates these targets, and it has become the international reference for a company to demonstrate credible, verifiable decarbonisation.

In Europe, the regulatory push of the CSRD and the EU Taxonomy is driving companies across all sectors to set robust, auditable reduction targets. In this article we explain what the SBTi is, how its methodology works, what changes with the new Corporate Net-Zero Standard V2.0 published in June 2026, and how to set science-aligned targets step by step.

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

The Science Based Targets initiative (SBTi) is an initiative that verifies whether a company's emissions-reduction targets are consistent with the scientific pathways needed to limit global warming to 1.5°C. It was born from the collaboration between CDP, the United Nations Global Compact, the World Resources Institute (WRI) and WWF.

Its value is that it turns a generic climate commitment into a quantifiable, auditable target, anchored in the scenarios of the IPCC and in sectoral pathways that draw, among other sources, on the scenarios of the International Energy Agency (IEA). This makes it possible to compare companies with one another, lend credibility before regulators and investors, and tell real decarbonisation apart from narrative.

Why has it become the dominant standard?

The SBTi has prevailed because it offers a framework capable of setting a concrete reduction pace aligned with science, as opposed to vague voluntary commitments. Added to that methodological precision is the pressure of the CSRD and the preference of banks, funds and auditors for externally validated targets. The result is a common language between regulators, companies and stakeholders, especially useful in carbon-intensive sectors such as energy, heavy industry or transport.

The new Corporate Net-Zero Standard V2.0 (June 2026): what changes

The SBTi's reference corporate standard is the Corporate Net-Zero Standard. Its version 2.0 was published in June 2026 after two public consultations and a pilot testing period. It is worth knowing its application timeline before starting the process:

• V2.0 comes into force on 31 January 2027.
• There is a transition period: until 31 January 2028, companies can submit targets under the previous version (V1.3.1) or under V2.0.
• From 31 January 2028, V2.0 will be mandatory for all new submissions.

The most relevant changes in V2.0 are:

• Company categories. It distinguishes between large companies (Category A) and smaller ones (Category B), with obligations proportionate to their size.
• New treatment of Scope 3. The old 67% coverage threshold is replaced by a significance-based approach: Scope 3 categories representing 5% or more of total value-chain emissions must be covered by targets. In practice, this demands more granular supplier data.
• Removals for neutrality. The standard introduces an explicit pathway for removing residual emissions that grows until it covers 100% in the neutrality year, no later than 2050.

Near-term targets submitted during 2025, 2026 and 2027 under the current criteria (Corporate Net-Zero Standard V1.3 and the near-term criteria) remain valid until the end of their time horizon.

How does the SBTi methodology work?

The methodology turns a company's carbon footprint into science-aligned reduction targets. It combines rigorous measurement, recognised pathways and external validation.

1. Quantify the full carbon footprint (Scopes 1, 2 and 3)

The starting point is an emissions inventory following the GHG Protocol: the direct emissions of Scope 1, the indirect electricity emissions of Scope 2 and the value-chain emissions of Scope 3. The quality of this calculation shapes the soundness of everything else.

2. Assign a reduction pathway

With the footprint defined, the company applies scientific pathways. The absolute contraction approach (ACA) sets a minimum reduction of 4.2% per year in absolute emissions as a reference floor; in sectors with specific tools, sectoral intensity methods apply.

3. Set short- and long-term targets

The company sets near-term targets (with a horizon around 2030) that ensure immediate, verifiable action, and long-term neutrality targets (by 2050 at the latest) focused on real reductions, reserving removals for residual emissions.

4. External validation by the SBTi

Finally, the SBTi reviews the calculations and the consistency of the targets. External validation lends credibility before regulators, investors and customers.

What does the SBTi require to validate targets?

The SBTi sets criteria the company must meet for its targets to be accepted. The most relevant are:

• Absolute reduction. Targets must reflect a reduction pace consistent with 1.5°C, with the 4.2% annual floor of the absolute contraction approach.
• Inclusion of Scope 3. When a value-chain category is significant (from the 5% threshold in V2.0), it must be covered by targets. In many sectors such as fashion, food, logistics or technology, Scope 3 concentrates most of the footprint, so practically every company has to manage it.
• Mandatory near-term targets. Every company must define near-term targets.
• Neutrality targets. Any company wanting to communicate climate neutrality must also validate long-term targets to 2050.

If your company does not yet have a reliable system to calculate Scope 3, we recommend reading how to use AI to overcome the supplier data barrier.

What benefits does a company gain from adopting the SBTi?

Setting science-based targets does not only strengthen the climate strategy, it also brings regulatory, financial and reputational advantages:

• Regulatory compliance. Aligning reduction pathways with the SBTi makes it easier to meet the transparency requirements of the CSRD and the EU Taxonomy, simplifying audits.
• Better access to sustainable finance. Many banks and funds use the SBTi as an eligibility criterion for loans linked to sustainability targets.
• Lower greenwashing risk. External validation reduces exposure to accusations of greenwashing and reinforces credibility with consumers and investors.
• Operational savings. The measures that compliance requires (energy efficiency, electrification, renewables) generate direct savings.
• Investor confidence. Large funds value the SBTi as an indicator of climate maturity.

How to set SBTi targets step by step

1. Calculate the full carbon footprint. Quantify Scopes 1, 2 and 3 following the GHG Protocol with auditable emission factors. To go deeper, see the guide to Scope 3 and the 15 categories of the GHG Protocol.
2. Select the methodology. Apply the sectoral method when a specific tool exists for your sector; in all other cases, the absolute contraction approach.
3. Set the base year. Choose a year with complete, representative and verifiable data.
4. Set the near-term targets. Define concrete reductions with a horizon around 2030, in absolute or intensity terms depending on the sector.
5. Set the neutrality target. Define the pathway to net-zero emissions by 2050, prioritising real reductions and reserving removals for residual emissions.
6. Prepare and submit the documentation. Compile the technical documentation and send it to the SBTi for validation.

Common mistakes when setting SBTi targets

• Underestimating Scope 3, which in most sectors concentrates the bulk of emissions and is usually the point that blocks validation.
• Using unofficial emission factors or factors without traceability, which creates inconsistencies.
• Not integrating the targets into the financial strategy (budgets, investments, CAPEX planning).
• Setting generic targets without a calculation behind them, which the SBTi rejects.

Frequently asked questions about science-based targets (SBTi)

Is adopting the SBTi mandatory?

It is not a legal obligation in itself, but it is the most recognised method for demonstrating science-based targets, something increasingly demanded by the CSRD, investors and value chains.

Does the SBTi allow offsetting emissions?

The standard prioritises real reduction. Removals are reserved for residual emissions within the neutrality targets, with a pathway that grows until it covers 100% in the neutrality year.

How often do you have to validate?

Validation is carried out when setting the targets, but the company must report its progress every year.

What happens if the targets are not met?

The company must justify the deviations and, where appropriate, revise its targets; failure to comply can affect its recognition by the SBTi.

To support the calculation of your carbon footprint and the design of science-aligned targets, you can rely on Manglai's carbon footprint platform, compatible with the GHG Protocol and the ISO 14064 standard.