Decarbonisation: what it is and why it matters
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What is decarbonisation and why is it urgent? Learn practical steps companies can take to support the global move toward net zero emissions.
What is the Science-Based Targets Initiative (SBTi)?
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By Stephanie Safdie, US Copywriter, on 01/10/2026
Updated by Agnès Potier-Murphy
The Science Based Targets initiative (SBTi) sets the rules companies follow to build climate targets in line with what science says is needed to reach net zero by 2050 at the latest. Its subsidiary, SBTi Services, then checks those targets against the rules. More than 12,000 companies have now had targets validated, and in January 2026 only Japan had more SBTi-validated companies than the UK.
In June 2026, the SBTi published version 2.0 of its Corporate Net-Zero Standard, which takes effect on 31 January 2027. Companies can still submit under the current version until 31 January 2028, so most targets set over the next year will follow the existing rules.
In this article, we'll explore:
What the SBTi standard is
What makes a target science-based, and how near-term and net-zero targets differ
What the Corporate Net-Zero Standard requires today, and what changes under version 2.0
How to get SBTi validation step by step, and how long the review takes
How much validation costs UK-registered companies, from SMEs to large corporates
What SBTi-validated targets look like in practice, from McLaren Racing to Arsenal
What is the SBTi?
The Science Based Targets initiative (SBTi) is the charity that decides what counts as a science-based corporate climate target. To qualify, a target has to show how much, and how quickly, a company needs to cut its greenhouse gas emissions to play its part in limiting global warming to 1.5°C, the stricter of the two temperature limits in the Paris Agreement. Companies and financial institutions use its standards to set two types of SBTi targets, near-term and long-term net-zero, and once validated, these are listed on the SBTi's public Target Dashboard.
The SBTi launched in 2015 as a collaboration between CDP, the UN Global Compact, the We Mean Business Coalition, the World Resources Institute (WRI) and WWF. Today it is registered in England and Wales and based in London, and setting science-based targets through it is voluntary. Its standards, tools and guidance are free for any organisation to use. Validation is a paid service run by a separate legal entity, which keeps the body that writes the criteria apart from the one that applies them:
The SBTi Charity
Develops the scientific standards, tools, and industry-specific guidance.
SBTi Services
Provides independent validation of corporate targets to ensure they meet strict criteria.
What are the key features of the SBTi?
Four features shape how target setting through the SBTi works in practice:
Evidence-Based 1.5°C Alignment
Since 15 July 2022, Scope 1 and 2 targets submitted for validation must be aligned with a 1.5°C pathway, phasing out the less ambitious well-below-2°C option the SBTi accepted before.
Sector-Specific Guidance
Tailored frameworks are provided for high-impact sectors such as Power, Automotive, Buildings, and Forest, Land, and Agriculture (FLAG).
Annual Progress Reporting
Companies with validated targets have to report their greenhouse gas emissions and their progress against those targets every year.
The Mitigation Hierarchy
Companies are expected to cut emissions within their own operations and value chain first. Action beyond the value chain, such as funding climate projects, can then be added on top of those reductions. Under V2.0, this becomes a voluntary programme called Ongoing Emissions Responsibility.
How has the SBTi evolved since 2015?
When it launched, the SBTi aimed to get 100 companies to commit to setting greenhouse gas reduction targets. Demand has since grown far beyond that: companies with SBTi-validated targets now come from nearly 100 countries and 52 sectors, and by January 2026 they represented more than 40% of global market capitalisation.
🛠️ Evolution of the Framework
2015
The SBTi launches and validates the first corporate science-based targets.
2021
Launch of the first Corporate Net-Zero Standard, providing a blueprint for long-term decarbonisation.
2024
Institutional split creates SBTi Services, a dedicated arm for independent target validation.
2025
More than 3,000 companies have targets validated in a single year, over 40% of them in Asia.
January 2026
The number of companies with SBTi-validated targets passes 10,000.
June 2026
June 2026: Version 2.0 of the Corporate Net-Zero Standard is published.
How has the SBTi evolved since 2015?
When it launched, the SBTi aimed to get 100 companies to commit to setting greenhouse gas reduction targets. Demand has since grown far beyond that: companies with SBTi-validated targets now come from nearly 100 countries and 52 sectors, and by January 2026 they represented more than 40% of global market capitalisation.
| Feature | Self-declared pledge | SBTi-Validated Target |
|---|---|---|
| Definition of net zero | Each company defines its own. | Follows the SBTi's common, science-based definition. |
| Role of carbon credits | The company decides how credits are used. | Credits cannot count as emission reductions. They can only neutralise residual emissions or finance mitigationbeyond the company's own targets. |
| Accountability | Self-reported and unverified. | Independent validation by SBTi Services. |
Near-term vs net-zero targets: what's the difference?
Near-term targets set the pace of emission cuts for the years ahead, while net-zero targets, also called long-term targets, set the total reduction needed to reach a residual level. A company setting a net-zero target has to set both, and the near-term target acts as a milestone on the way to the long-term one. Under version 1.3.1, they differ as follows:
| Near-term target | Net-zero (long-term) target | |
|---|---|---|
| Timeframe | 5 to 10 years from submission | 2050 or sooner |
| Scope 1 and 2 ambition | Aligned with 1.5°C | Aligned with 1.5°C |
| Scope 3 ambition | Well-below 2°C at a minimum | 1.5°C |
| Scope 3 coverage | At least 67%, where a Scope 3 target is required | At least 90%, for all companies |
Solving the Scope 3 mystery
For most companies, Scope 3 is where the bulk of emissions sit: CDP found that supply chain emissions averaged 26 times higher than operational emissions. A near-term Scope 3 target is required when Scope 3 makes up 40% or more of a company's total emissions, and there are three main ways to set one:
Supplier Engagement
Set a target for suppliers covering a share of Scope 3 emissions, or of procurement spend when emissions data is not available, to adopt science-based targets within five years.
The Absolute Reduction
Commit to cutting absolute Scope 3 emissions by a set percentage, either across all Scope 3 categories or for individual categories such as purchased goods or business travel.
Intensity Targets
Reduce emissions per unit of output, measured either physically or economically, using approaches the SBTi has approved.
What changes with version 2.0?
Version 2.0 keeps the standard's scientific ambition but changes how companies structure their targets. The main differences from version 1.3.1 are:
| Version 1.3.1 | Version 2.0 | |
|---|---|---|
| Company categories | The same requirements for all corporates, with a streamlined route for SMEs | Category A and Category B, based on company size and region |
| Scope 3 targets | Required once Scope 3 passes a set share of total emissions, with fixed coverage percentages | Required for Category A and optional for Category B, covering every Scope 3 category worth 5% or more of the total |
| Scope 1 and 2 targets | Can be combined in one target, covering at least 95% | Separate targets, each covering 100% of the relevant emissions |
| Long-term targets | Always required alongside near-term targets | Long-term Scope 3 targets are optional for all companies |
| Action beyond the value chain | Recommended, with neutralisation of residual emissions at the net-zero year | Replaced by Ongoing Emissions Responsibility, a voluntary programme. From 2035, Category A companies must address part of their ongoing emissions with removals, a share that rises until residual emissions are fully neutralised at the net-zero year |
Which version applies depends on timing: companies setting targets in 2026 should use version 1.3.1, and version 2.0 becomes mandatory for every new submission once the transition period ends.
What are the strategic benefits of SBTi validation?
While the primary goal of the SBTi is environmental, the business benefits of scientific validation have become a key driver for adoption. By aligning with a 1.5°C pathway, organisations unlock long-term value across three key areas:
📊 Market Competitiveness & Capital Access
Investor Confidence
SBTi validation is increasingly used by investors to de-risk portfolios, often unlocking better financing terms and capital access.
Brand Authority
Third-party validation strengthens credibility and protects against greenwashing, appealing to both consumers and B2B partners.
Talent Magnet
Purpose-driven organisations attract and retain top talent who prioritise sustainability in their careers.
⚙️ Operational Efficiency & Resilience
Cost Optimisation
Decarbonisation efforts reveal inefficiencies, leading to long-term savings in energy and resource use.
Innovation Catalyst
Climate challenges drive innovation, enabling new low-carbon products, services, and business models.
Supply Chain Stability
Engaging suppliers improves visibility and helps mitigate climate-related risks across the value chain.
🛡️ Future-Proofing & Regulatory Readiness
Regulatory Shield
SBTi targets position companies ahead of evolving regulations and disclosure frameworks.
Standardised Benchmarking
Provides a universal framework for climate progress, simplifying reporting and target-setting processes.
The Bottom Line: An SBTi-validated target signals that your business is prepared for a low-carbon future, turning climate responsibility into a competitive advantage.
How can your company apply for SBTi validation?
In 2026, the application process runs through the SBTi Services Validation Portal, which digitises registration for companies that want to commit to or set targets. The journey from registration to disclosure follows six stages, and committing is optional:
📊 The 2026 Application Roadmap
| Step | Action | Key Deadline |
|---|---|---|
|
1
Register
|
Set up portal account and verify eligibility. | Start of journey |
|
2
Commit (optional)
|
Announce your intention to submit science-based targets. | 24 months to submit, if you commit |
|
3
Develop
|
Build your GHG inventory and develop targets using the SBTi's standards and criteria. | Before you submit |
|
4
Submit
|
Finalise and submit targets via SBTi Services. | Corporate results within 40 business days of the service start date |
|
5
Communicate
|
Publicly announce approved targets. | Within 6 months of approval |
|
6
Disclose
|
Report progress and conduct periodic reviews. | Annual reporting, plus a 5-year review cycle under version 1.3.1 |
How does the SBTi fit with other climate frameworks?
The SBTi builds on climate accounting and disclosure frameworks that companies already use.
The bridge to global standards
Two of them connect directly to target setting:
🌍 A Connected Climate Ecosystem
GHG Protocol
Companies build their emissions inventory and track progress following the GHG Protocol Corporate Standard, Scope 2 Guidance and Scope 3 Standard.
CDP
The SBTi recommends disclosing emissions and target progress through standardised platforms such as CDP's annual climate change questionnaire.
Has the SBTi been successful?
In just over a decade, the SBTi has gone from a niche experiment to the global benchmark for corporate accountability. The initiative has passed a major turning point: over 12,000 companies now hold validated science-based targets.
Real-world impact
In the SBTi's survey of 171 companies with validated targets:
Accelerated Action
86% reported a positive impact on their pace of decarbonisation.
Better Business
91% reported an overall positive impact on their organisation.
What do SBTi-validated targets look like in practice?
Science-based targets are not identical for every company. The SBTi uses tailored pathways that account for the unique challenges of different industries. For example, a heavy manufacturer and a digital tech firm follow different rules because their fair share of global decarbonisation looks different.
Arsenal FC
Pairing absolute cuts in direct emissions with revenue-based targets for the value chain.
Direct Reductions
42% reduction in Scopes 1 and 2 by 2030, and 90% by 2040, from a 2021 baseline.
Value Chain Intensity
52% reduction in Scope 3 emissions per £1m of revenue (excluding player trading) by 2030, and 97% by 2040.
McLaren Racing
Applying climate targets to high-performance logistics.
Near-term Target
50% emissions reduction by 2030, from a 2019 baseline.
Net-Zero Alignment
90% absolute reduction across the value chain by 2040.
SBTi FAQs
How much does it cost to join the SBTi?
The SBTi's own standards and tools are free to use, so the cost comes from validation. Fees depend on company type, size and the service chosen, and SBTi Services bills UK-registered companies in pounds plus 20% VAT. Under its current fee schedule, SMEs pay £933 to £1,493 for near-term validation. Corporates pay £9,701 to £19,403, depending on annual turnover, or £12,687 to £25,373 when net-zero validation is included. Financial institutions pay up to £37,164, and discounts apply to companies headquartered in lower-income economies.
What is the "Business Ambition for 1.5°C"?
The Business Ambition for 1.5°C was an SBTi campaign asking companies to commit to science-based net-zero targets. The campaign closed in November 2021, and companies now set net-zero targets through the Corporate Net-Zero Standard.
How long does the validation process take?
After you submit your targets through the Validation Portal, corporate results are due within 40 business days of the service start date set in SBTi Services' validation schedule. Financial institutions receive results within 60 days, and SMEs have no fixed timeframe. The total time also depends on the quality of the data submitted and how quickly your team answers technical queries from the validators.
What happens if the 24-month deadline isn't reached?
After a company formally commits, it has a 24-month window to submit its targets for validation. If this deadline is missed, its status on the public Target Dashboard changes to "Commitment Removed". Once targets are validated, the status changes to "Targets set".
Can companies use carbon offsets to meet their targets?
No. A core rule of the SBTi is that carbon offsets cannot be used to reach your emission reduction goals. You must achieve actual, physical reductions in your footprint. Carbon removals are only permitted to neutralise the final residual emissions (usually the last 10%) once a company has reached its long-term Net-Zero state.
Are there specific rules for different industries?
Yes. While the general framework is the same, the SBTi has developed Sector-Specific Guidance for high-impact industries such as Cement, Steel, and Aviation. These guidelines ensure that the decarbonisation math is fair and reflects the specific technological challenges of each sector.
How can I check a company's SBTi commitment status?
Search the SBTi's public Target Dashboard, which lists every company with a commitment or validated targets. The status shows where the company stands: "Committed", "Targets set" once its targets are validated, or "Commitment Removed" if it missed the 24-month deadline.
Can a company get SBTi certified?
SBTi Services validates company targets, which is often what people mean by certification. Approved targets then appear as validated on the SBTi's Target Dashboard. The certification the SBTi does offer is the SBTi Academy credential for individual sustainability practitioners.
Do financial institutions follow different SBTi rules?
Yes, financial institutions follow a separate standard, the SBTi's Net-Zero Standard for Financial Institutions, and the Corporate Net-Zero Standard does not cover them. SBTi Services validates their targets through a dedicated route with its own fees and review time.
What About Greenly?
Greenly's SBTi module supports companies through the whole target-setting process. It starts with an audit-grade GHG assessment across Scopes 1, 2 and 3, turns the results into a quantified action plan, and models your decarbonisation pathway against SBTi targets, with supplier engagement tracked in the same workspace.
A dedicated climate expert guides the submission and final review, and the platform keeps tracking your targets and recalculating your baseline after validation.
Ready to set your own science-based targets? Explore our SBTi solution or book a demo.
SBTi, Introducing the SBTi Corporate Net-Zero Standard Version 2.0
SBTi, Corporate Net-Zero Standard V2.0 Main Changes Document
SBTi, Corporate climate action momentum builds as SBTi reaches 10,000 companies with validated targets
SBTi, About us
SBTi, The impact of setting science-based targets on businesses
SBTi, Business Ambition for 1.5°C
SBTi, Climate ambition: SBTi raises the bar to 1.5°C
SBTi, What's in a commitment?
SBTi Services, Target Validation Service Offerings
SBTi Services, Set a science-based target today
CDP, Corporates' supply chain scope 3 emissions are 26 times higher than their operational emissions
Arsenal FC, Arsenal's 2040 net zero target approved
McLaren Racing, Net Zero: the race to enter
WWF, Science Based Targets initiative
SBTi, 10,000 companies in 10 years: Companies leading the net-zero transformation
SBTi, Corporate Net-Zero Standard Version 1.3.1
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