The Carbon Border Adjustment Mechanism (CBAM)
14 min
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In this article, we break down what the EU CBAM is, how it works, and what businesses need to do to comply.
ESG / CSR
Industries
MEASURE
ACT
COMFORM
What is the Science-Based Targets Initiative (SBTi)?
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By Stephanie Safdie, US Copywriter, on 29/09/2022
Updated by Kara Anderson, on 09/04/2026
In the current business landscape, an environmental claim is only as strong as the science backing it. The Science Based Targets initiative (SBTi) has evolved from an ambitious voluntary framework into the definitive global prerequisite for corporate accountability.
Setting a science-based target is a rigorous, data-driven commitment that aligns your business with the 1.5°C pathway. Whether you are a small enterprise or a multinational corporation, the SBTi provides the blueprint to ensure your decarbonisation strategy survives both scientific scrutiny and investor expectations.
In this article, we'll explore:
What the SBTi standard is
How the Net-Zero Standard works
How Scope 3 pathways function
What validated target benefits include
How the 2026 application functions
What is the SBTi?
The Science Based Targets initiative (SBTi) is a global climate action organisation that enables businesses and financial institutions to set rigorous emissions reduction targets. These targets are considered science-based if they align with the latest climate science and the central goal of the Paris Agreement: limiting global warming to 1.5°C above pre-industrial levels.
Originally founded as a partnership between CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF), the SBTi has grown into the gold standard for corporate decarbonisation. Today, it operates with a clear separation of duties:
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.
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What are the key features of the SBTi?
The SBTi provides more than just a badge of commitment; it offers a technical and strategic architecture that turns climate ambition into a measurable business process. The core pillars of the initiative include:
Evidence-Based 1.5°C Alignment
All targets are grounded in the latest climate science to ensure a company’s decarbonisation pathway is aligned with limiting global warming to 1.5°C, as defined by the Paris Agreement.
Independent Validation (SBTi Services)
To eliminate conflicts of interest, target validation is handled by SBTi Services, a dedicated subsidiary providing rigorous, third-party assessment of corporate goals.
Sector-Specific Guidance
Tailored frameworks are provided for high-impact sectors such as Power, Automotive, Buildings, and Forest, Land, and Agriculture (FLAG).
A Standardised Disclosure Framework
Annual public reporting is required, supporting compliance with regulations like the EU’s CSRD while strengthening transparency and stakeholder trust.
The Mitigation Hierarchy
The framework prioritises direct emissions reduction before considering beyond value chain contributions, ensuring claims are based on real operational change.
SBTi - a decade of scaling ambition
The SBTi was founded in 2014 with a simple, yet radical goal: to get 100 companies to set climate targets based on science rather than convenience. Fast forward to today, and that pilot program has evolved into a global movement representing over 40% of global market capitalisation.
🛠️ Evolution of the Framework
2014
Launched as a partnership between CDP, UNGC, WRI, and WWF.
2015
The first corporate science-based targets are validated.
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.
Current Day
Over 10,000 companies have now successfully validated their targets, making science-based alignment the “new normal” for global trade.
Navigating the standards: from pledges to validation
The most critical distinction for any business to understand is the gap between a self-declared pledge and an SBTi-validated target. Under the Corporate Net-Zero Standard (V2.0), a company has only reached a credible Net-Zero state when it has reduced emissions by 90% or more across its entire value chain, using permanent carbon removals only for the final 10% of residual emissions.
| Feature | Self-Declared "Pledge" | SBTi-Validated Target |
|---|---|---|
| Integrity | Often relies on "offsets" rather than reductions. | Requires 90% absolute reduction in emissions. |
| Legal Standing | High risk of "greenwashing" litigation. | Aligns with CSRD and IFRS legal requirements. |
| Accountability | Self-reported and unverified. | Independent validation by SBTi Services. |
Solving the Scope 3 mystery
For most organisations, the supply chain (Scope 3) accounts for over 90% of their total footprint. While this has historically been a vague area, the SBTi now enforces a structured three-track approach to remove the guesswork:
Supplier Engagement Track
Set a target for a percentage of suppliers (by spend or emissions) to adopt SBTi-validated targets within five years, creating a cascading effect of accountability.
The Absolute Reduction Track
Commit to a direct percentage reduction in emissions for categories under your control, such as business travel or waste.
The Commodity Track
Focus on reducing emissions per unit for high-impact materials like steel or cotton through improved sourcing strategies.
The 2026 Rule on Flexibility
Carbon credits cannot be used for Scope 3 targets; the emphasis is entirely on physical decarbonisation across sourcing, design, and logistics.
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 such as CSRD and other disclosure frameworks.
Standardised Benchmarking
Provides a universal framework for climate progress, simplifying reporting and certification 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 is managed through the SBTi Services Validation Portal, a centralised digital platform that has replaced old spreadsheet-based submissions. The journey from commitment to validation follows a structured five-step path:
📩
Commit
Companies formally commit to set science-based targets.
🛠️
Develop
Develop emissions reduction targets aligned with climate science.
📤
Submit
Submit your targets to the SBTi for official validation.
📣
Communicate
Publicly announce your approved science-based targets.
📊
Disclose
Regularly report progress against your targets.
📊 The 2026 Application Roadmap
| Step | Action | Key Deadline |
|---|---|---|
|
1
Register
|
Set up portal account and verify eligibility. | Start of journey |
|
2
Develop
|
Build GHG inventory and set 1.5°C-aligned targets. | Within 24 months of commitment |
|
3
Submit
|
Finalise and submit targets via SBTi Services. | 30–60 day review window |
|
4
Communicate
|
Publicly announce approved targets. | Within 6 months of approval |
|
5
Disclose
|
Report progress and conduct periodic reviews. | Annual reporting + 5-year review cycle |
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The global sustainability ecosystem
The SBTi isn't just another certification to collect - it’s the scientific backbone for almost all major climate reporting today. Because it’s so widely recognised, setting a target often satisfies the requirements of other global organisations at the same time.
The foundation
The initiative is a collaboration between four key groups that handle different parts of the process:
CDP
Where companies report climate data directly to investors.
UN Global Compact
Helps businesses align operations with global sustainability goals.
WRI & WWF
Provide technical expertise to ensure standards are grounded in real-world data.
The bridge to global standards
In today’s market, the SBTi provides the how-to for several other high-profile frameworks:
🌍 A Connected Climate Ecosystem
The Race to Zero
The SBTi’s Corporate Net-Zero Standard is the recognised technical pathway for the UN-backed Race to Zero campaign.
SME Climate Hub
For smaller businesses, the SBTi works alongside the SME Climate Hub to provide specialised tools that make decarbonisation accessible without the need for large internal sustainability teams.
Regulatory Alignment
The SBTi works closely with bodies like the ISSB to help ensure science-based targets meet the climate-related expectations of global financial reporting.
Key Takeaway
You are not just joining the SBTi — you are joining a synchronised global movement. This ecosystem helps ensure that the data collected for your targets can be reused across multiple reporting platforms, saving time and resources.
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 recently passed a major turning point: 10,000 companies now have validated science-based targets.
This isn't just a big number - it represents a fundamental shift in the market. These 10,000 organisations now account for over 40% of the world’s total market value.
Real-world impact
The data shows that this framework is changing how companies actually operate, not just how they report:
Accelerated Action
86% of companies say validation forced them to accelerate their decarbonisation plans faster than originally intended.
Better Business
91% of companies report a positive impact on overall business health and strategic direction.
Asia’s Momentum
Asia is now the fastest-growing region for new targets, with Japan emerging as a global leader in science-based alignment.
The shift to 1.5°C
When the Paris Agreement was first signed, the conversation was often about 2 degrees. But the science has since made it clear that we need to be more ambitious. The SBTi has responded by raising the bar: all new targets must now align with a 1.5°C pathway.
This shift is vital because vague, self-defined goals often miss the mark. The SBTi provides the rigorous math to ensure a company's fair share actually helps close the global emissions gap.
“An SBTi-validated target is proof that a business is prepared for a low-carbon economy. Whether the goal is to win over investors, stay ahead of new laws, or clean up a complex supply chain, the SBTi remains the most credible roadmap we have for the years ahead.”
Real-world examples: what science-based targets look like
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.
Microsoft
Addressing historical emissions across its full lifecycle impact.
Carbon Negative by 2030
Reducing and removing more carbon than emitted across all scopes.
Legacy Removal
Removing the equivalent of all emissions since 1975 by 2050.
PepsiCo
Driving decarbonisation through its global value chain.
Direct Reductions
75% absolute reduction across Scopes 1 and 2.
Value Chain Scaling
40% reduction in Scope 3 via supplier engagement.
McLaren Racing
Applying climate targets to high-performance logistics.
Near-term Target
50% emissions reduction across all scopes by 2030.
Net-Zero Alignment
90% absolute reduction across the value chain by 2040.
As of the current standards, the SBTi only validates targets aligned with the 1.5°C trajectory. This ensures that all approved goals - regardless of the industry - meet the highest level of climate ambition.
SBTi FAQs
How much does it cost to join the SBTi?
The cost is tiered based on the size of the organisation and the complexity of the review. For small and medium enterprises (SMEs), there is a simplified, lower-cost route. For larger corporations, the fee is higher to cover the technical assessment of near-term and long-term (Net-Zero) targets. Generally, companies should budget between £1,000–£11,500 ($1,250–$14,500) depending on their eligibility and the specific validation services required.
What is the "Business Ambition for 1.5°C"?
This was a major global campaign that has now been integrated into the core SBTi criteria. While the specific campaign has ended, its requirements are now the standard: the SBTi no longer validates targets aligned with 2°C. Every new application must now align with the 1.5°C pathway.
How long does the validation process take?
After submitting your targets through the digital portal, the technical review typically takes between 30 and 60 business days. This timeline can vary depending on the quality of the data submitted and how quickly your team can respond to technical queries from the auditors.
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, the company’s status is updated to "Target Removed" on the public dashboard. This remains visible to the public, including investors and partners, until a new submission is made.
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 Finance, Cement, Steel, and Aviation. These guidelines ensure that the decarbonisation math is fair and reflects the specific technological challenges of each sector.
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What About Greenly?
Unmatched Data Accuracy — Your foundation for confident climate action
We deliver the most precise & auditable carbon assessment so your GHG data is bullet-proof from ingestion to reporting.
📊 Scope 1, 2 & 3 analysis using activity-based & spend-based data
🗂️ Dynamic database of 350k+ Emission Factors (sector- & location-specific)
🤖 Automated EF matching via an evolving algorithm
🧠 AI-powered data categorisation covering over 100+ languages
🔎 Granular analytics (BU, scope-specific, corporate, division, facility…)
📄 4000+ GHG reports delivered (for 3000+ clients)
🛡️ Built-in data quality controls with automated ingestion & validation
🧾 Internal visibility & ready-to-export audit trails
🌍 Aligned with global standards (GHG Protocol, ADEME, Bilan Carbone, SBTi, etc.)
Gain Expertise & Lead Your Decarbonisation In-house
Empower your team to become autonomous climate experts with workshops, in-app training and granular insights to manage projects confidently.
🗺️ Roadmap workshops: targets & action pathways
🎓 In-app training & stakeholder buy-in incl. supplier onboarding
📚 Full climate e-learning library with employee challenges
🧩 Project & task manager tailored to your company (owners, budgets, timelines)
🤝 Scope 3 supplier portal with automated reminders & autonomous workflows (GHG assessment, LCA, etc.)
Personalised & Actionable Decarbonisation
We turn your data into an action plan with impact & financial analysis so you can prioritise the most effective and feasible levers.
📚 Action Plan Library: 200+ quantified actions (reduction potential & steps)
📈 Decarbonisation Trajectory Builder: real-time simulation, scenarios & industry benchmarking
🎯 Personalised suggestions linked to targets (corporate/division/site)
🔗 Supplier integration: modelled supplier trajectories & contribution to targets
✅ End-to-end SBTi module (from commitment letter to expert review)
Save Time & Focus on Action, Not Admin
We streamline your entire carbon workflow to cut admin burden and give you real-time visibility on progress.
🔗 100+ API integrations (ERP, accounting, logistics, cloud, HR…)
🤖 AI-powered data harmonisation (ETL)
🧾 1-click, audit-grade exports (CSRD, SEC, GHG Protocol, etc.)
📆 Annual footprint tracking & automatic EF updates
🎯 Yearly target recalibration
📊 Live dashboards & monthly progress reporting (Gantt-style monitoring)
🌱 Offset portfolio via Patch (vetted projects)
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