🧭 Setting Science-Based Targets: A Practical Guide for Businesses

TY Lee
Jul 8
2 min read

Here's a step-by-step article to help guide readers through the process of setting science-based targets (SBTs), referencing the SBTi How-To Guide for Setting Near-term Targets (Version 2.0):

Science-based targets (SBTs) empower companies to take credible climate action by aligning their greenhouse gas (GHG) emissions reduction goals with climate science. Here's how your organization can navigate the process effectively:

🌍 Step 1: Understand Your Organizational Context

Before diving into target setting, assess:

Entity Type: Only companies (excluding cities, NGOs, public institutions above 500 staff) can currently submit targets to SBTi. SMEs (<500 employees) use a simplified route.
Sector: Identify if your sector has specific guidance (e.g., Power Generation, Aviation, ICT, Apparel). Oil & Gas companies must wait for sectoral methods to be finalized.
Subsidiary vs Parent: Parent companies should submit consolidated targets for all subsidiaries.

📊 Step 2: Conduct a Full GHG Inventory

You must complete a GHG inventory across:

Scope 1 & 2: Direct emissions and electricity usage.
Scope 3: Indirect emissions across the value chain, including upstream/downstream activities.

Use tools such as:

GHG Protocol Corporate Standard
Scope 3 Evaluator
CDP Supply Chain Program

Note:

Offsets and avoided emissions are excluded from SBTs.
Optional Scope 3 emissions must be reported separately.

🧪 Step 3: Choose Your Target Type & Boundary

Define your approach:

Scope 1 & 2: Must align with a 1.5°C target over a 5–10 year time frame using:
- Absolute Contraction Approach
- Sectoral Decarbonization Approach (SDA), if available
Scope 3: Required if it makes up ≥40% of total emissions. Targets must cover at least 67% of Scope 3 emissions.

Types include:

Absolute or Intensity-based targets
Supplier/Customer Engagement goals
Combination approaches

🏗️ Step 4: Align with Sectoral Guidance

Consult sector-specific requirements where applicable. Examples:

Sector	Scope 1 & 2 Ambition	Scope 3 Considerations
ICT	1.5°C pathways or absolute contraction	Must meet criteria C18
Power Generation	SDA alignment required	Must include sold electricity in Scope 3 target
Financial Institutions	Targets for financed emissions	Use finance sector guidance
Aviation	Explicit exclusion of non-CO₂ impacts	Must state Well-to-Wake scope clearly

🧮 Step 5: Model Your Targets

Use the SBTi Target-Setting Tool to:

Input your emissions data
Select pathway and timeframe
Generate modeled targets

Ensure targets exclude up to 5% of Scope 1+2 emissions if necessary and comply with minimum ambition thresholds.

📁 Step 6: Prepare Your Submission

Compile the following documents:

Target Submission Form
Full GHG Inventory
Supporting methodology and boundary documentation

SMEs use the Target Setting Letter, while larger firms submit via the standard validation route.

🔍 Step 7: Submit for Validation

Send materials to the SBTi for evaluation. Your submission will undergo:

Technical due diligence
Validation against SBTi criteria V5.0
Public listing upon approval

🛠️ Additional Tips

Regularly update your GHG inventory and adjust targets as needed.
Follow base year recalculation guidance when structural changes occur.
For sectors in scoping (e.g., chemicals, OEMs), track updates on SBTi’s Sector Development page.