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Climate & Data
08/07/2026
No
Thoughts of
Target with an arrow in the centre as a symbol for science-based climate targets and reduction pathways according to SBTi.
In this post
Why SBTi is becoming relevant for companies
What the SBTi actually does
Why Scope 3 is the biggest hurdle
A climate target is quickly formulated. The more difficult question is whether it is also technically sound. That is exactly what SBTi is about: not about another label for communication, but about the methodical derivation of a reduction path. And so, the process begins much earlier than many think – with the CO₂ footprint.
Many companies do not engage with SBTi because they voluntarily want to introduce another sustainability system.
Frequently, the trigger is much more practical: a customer asks about climate targets. A corporate group expects science-based reduction targets in the supply chain. A retail company demands emission data. A tender asks for a reduction path. Or the management wants to know whether their own climate strategy is robust enough.
As a result, the role of climate targets is changing. They are no longer just a voluntary external signal, but are increasingly becoming part of supplier assessments, customer requirements, financing questions, and strategic corporate management.
The Science Based Targets initiative offers an internationally recognised framework for this. Companies can develop climate targets and submit them for validation. The SBTi Services check whether the submitted targets meet the relevant standards, criteria, and methods. Validation, therefore, does not mean that a company simply formulates an ambitious target. It means that this target is verified against defined requirements.
For companies, this is precisely the crucial point: an SBTi target is not just a communication statement. It is a methodically derived target path.
Basics
The Science Based Targets initiative develops standards, criteria, tools and guidance with which companies can set greenhouse gas reduction targets in line with climate science.
The Corporate Net-Zero Standard outlines targets that are intended to be consistent with the goal of limiting global warming to 1.5 degrees and achieving net-zero by 2050 at the latest.
This is not just about a long-term net-zero statement. For many companies, shorter-term, so-called near-term targets are particularly relevant. These targets describe how emissions are to be reduced within a closer timeframe. The basis for this is the company's greenhouse gas balance.
The SBTi distinguishes between Scope 1, Scope 2 and Scope 3. Scope 1 covers direct emissions, for example from owned fuels or vehicle fleets. Scope 2 covers emissions from purchased energy. Scope 3 covers indirect emissions along the value chain, for example from purchased goods, transport, business travel, use of sold products or waste disposal.
Scope 3 in particular is crucial for many companies. According to current SBTi criteria, relevant Scope 3 emissions must be included in near-term targets if they account for 40 per cent or more of total Scope 1, Scope 2 and Scope 3 emissions. The corresponding Scope 3 targets must then cover a sufficient proportion of these emissions.
This shows: SBTi does not start with formulating a target. SBTi starts with the question of whether the emissions baseline is complete and robust enough.
Scope 3
In practice, companies often want to know quickly what target they can set. This is understandable. Climate targets appear clearer to the outside world than data tables, emission factors and Scope 3 categories.
Nevertheless, the target figure is not the starting point.
The starting point is the carbon footprint.
A company must know what emissions arise in Scope 1 and 2, which Scope 3 categories are relevant, which data sources were used, what assumptions are included and where uncertainties still exist. Without this foundation, no resilient reduction pathway can be derived.
An incomplete carbon footprint quickly leads to the wrong priorities. If Scope 3 is only viewed cursorily or not at all, even though that is where the majority of emissions lie, a target may sound good but will not hold up methodologically. If locations are missing, data is not cleanly delimited or emission sources are incorrectly allocated, subsequent validation becomes more difficult.
Therefore, an SBTi process should begin with a sober assessment:
A quick question in the meantime
01
Is the greenhouse gas balance structured in accordance with the GHG Protocol?
02
Are Scope 1 and Scope 2 fully recorded? Which Scope 3 categories are relevant?
03
What is the proportion of Scope 3 in total emissions? Which data are reliable, and which are estimated?
04
Which emission sources were excluded, and why? What data quality is sufficient for deriving a target?
Readiness & Implementation
For many companies, the real challenge does not lie in Scope 1 and Scope 2.
Own fuels, vehicle fleet, refrigerants, electricity and heat can usually be recorded relatively well. Not always immediately, but with clear responsibility and proper data sources.
Scope 3 is more difficult because emissions are generated outside the direct sphere of influence. Purchased goods, services, materials, packaging, transport, use of sold products or disposal depend on suppliers, customers, logistics partners and assumptions.
This is exactly where SBTi becomes demanding. A company cannot simply say: "Scope 3 is complicated, so we will leave it out." If Scope 3 is material, it must be adequately taken into account. This does not mean that every piece of information has to be perfect in the first step. However, it does mean that relevance, data sources, assumptions and target coverage must be professionally and soundly justified.
Medium-sized companies in particular often underestimate this point. They often have plenty of data in purchasing, bills of materials, transport invoices, material lists or customer information. However, this data is not automatically available in a way that allows a Scope 3 greenhouse gas inventory and an SBTi-compliant target path to be created from it.
Scope 3 is therefore not just a calculation task. It is a structuring task.
SBTi is not a wishful target, but a validation process
A common mistake is to formulate climate targets based on gut feeling. For example: "We will reduce our emissions by 50 per cent by 2030."
Such statements may seem ambitious. What is crucial, however, is whether they fit the inventory, the base year, the methodology, company growth, Scope 3 and the SBTi criteria.
SBTi validation checks whether a submitted target meets the respective relevant standards, methods and criteria. To do this, companies must calculate their emission data, apply the appropriate methodology and submit their targets for validation via SBTi Services.
For companies, this means that the process should not only be professionally reviewed shortly before submission. It makes more sense to keep the SBTi requirements in mind right from the start.
These include, among others:
the selection of a suitable base year,
the complete recording of relevant emission sources,
the verification of Scope 3 relevance and target coverage,
the selection of the appropriate target methodology,
the classification of subsidiaries, sites and business units,
the assessment of data gaps,
the documentation of assumptions,
the preparation of submission documents.
Those who only check these points at the end risk correction loops. Those who classify them early on can save time and develop target pathways more realistically.