Science Based Targets Initiative (SBTi) Explained: Your Guide

When you hear about companies making climate pledges, it's easy to be sceptical. Are they just vague promises, or is there real substance behind them? This is where the Science Based Targets initiative (SBTi) comes in, offering a clear, science-backed roadmap for businesses to cut emissions in a way that actually matters for the planet.

Think of it like this: instead of just saying you want to "get healthier," you follow a fitness plan designed by a doctor based on your specific health data. The SBTi does the same for corporate climate action, transforming abstract goals into a credible, measurable pathway to align with the 1.5°C global warming limit.

What Are Science Based Targets?

Let's start with the big picture: the Paris Agreement set the destination, which is to keep global temperature rise well below 2°C, and ideally at 1.5°C. The SBTi essentially provides the turn-by-turn navigation for the corporate world to reach that destination. It’s a powerful partnership between major global organisations: CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).

This initiative doesn’t just nudge companies to trim their carbon footprint. It defines exactly how much and how quickly they need to reduce emissions to prevent the worst effects of climate change. So, a "science-based target" isn't just a goal; it's a specific emissions reduction target that is in lockstep with what the latest climate science says is necessary.

The Core Idea Driving the SBTi

At its heart, the initiative is about moving companies from small, incremental improvements to genuine, transformative change. It replaces fuzzy commitments like "we're going green" with concrete, time-bound objectives that have real teeth.

For example, a company might commit to slashing its absolute emissions by 42% by 2030. That number isn’t just pulled out of thin air. It’s calculated from climate models that show the precise speed of decarbonisation required to stay on the 1.5°C path.

This rigor forces a company to look beyond its own factory gates and office lights (Scope 1 and 2 emissions). It requires a deep dive into the entire value chain—from the raw materials sourced from suppliers to the way customers use its products (Scope 3 emissions).

A science-based target provides a clearly defined pathway for companies to reduce greenhouse gas (GHG) emissions, helping prevent the worst impacts of climate change and future-proof business growth.

First, You Need to Define Your Starting Line

You can't set a meaningful goal without knowing where you're starting from. The first step for any company is to create a complete and accurate inventory of its emissions profile. This means accounting for every bit of greenhouse gas produced across its operations and value chain.

To ensure this is done right, the accounting must follow a recognised framework. You can learn more about this foundational step in our guide on the GHG Protocol for Czech businesses. This baseline becomes the benchmark against which all reduction targets are set and measured.

By committing to a science-based target, a company is essentially signing up for two key milestones:

• Near-Term Targets: These are ambitious reduction goals set for the next 5-10 years, creating immediate momentum.
• Long-Term Targets: This is the long-haul commitment, outlining a clear path to reach net-zero emissions, usually by 2050 at the latest.

Ultimately, the SBTi provides a standardised and credible framework that separates genuine climate leaders from those engaging in greenwashing. It gives investors, customers, and regulators the confidence that a company’s climate promises are built on a foundation of solid science.

Why Science Based Targets Are Becoming a Global Standard

Not too long ago, setting ambitious climate goals was something only a handful of environmentally-focused pioneers did. Now, it's quickly becoming the expected norm for any company that wants to be taken seriously. A science-based target isn’t just a "nice-to-have" anymore; it’s cementing its place as the global benchmark for credible business.

This isn't just a trend. It's a fundamental shift in how the market judges a company's climate action.

The momentum behind this is impossible to ignore, and it’s being pushed by some very powerful forces. Investors, regulators, and even your customers are tired of vague promises about sustainability. They want proof—ambitious, verifiable commitments grounded in climate science that align with keeping global warming to 1.5°C. The SBTi framework offers exactly that, acting as a clear, universal standard for what real climate leadership looks like.

The Scale of Global Adoption

The growth of the Science Based Targets initiative has been nothing short of explosive. By the close of 2023, over 4,200 companies and financial institutions had their targets officially approved. That’s a massive 102% jump from the year before.

These aren't small players, either. Together, these organisations represent a mind-boggling 39% of the global economy by market capitalisation, which shows just how much weight the initiative now carries. You can dive deeper into the numbers in the SBTi's official 2023 progress report.

This incredible rate of adoption tells a clear story: the world's leading businesses have stopped asking if they should act on climate change. They’re now focused on how to do it in a way that truly counts, and the SBTi provides the roadmap they need.

The Science Based Targets initiative is transforming corporate climate pledges from public relations exercises into strategic business imperatives, grounded in scientific reality and market expectations.

Key Drivers Behind the Momentum

So, what's behind this massive push? Several key factors are creating a powerful cycle of commitment and action. Once you understand these drivers, it's easy to see why the SBTi has become so crucial.

• Investor Pressure: The financial world has woken up to the fact that climate risk is investment risk. Companies with SBTi-validated targets are seen as smarter, more resilient investments that are better prepared for carbon taxes and other regulations down the line.
• Regulatory Foresight: Governments across the globe are bringing in stricter rules on climate disclosure. Setting a science-based target now helps companies stay ahead of the curve, ensuring they're ready for whatever mandatory reporting comes next.
• Consumer and Talent Demand: People want to buy from and work for companies that share their values. A validated target is a clear signal that a brand is serious about its commitments, which helps build reputation and attract the best talent.

When you put these forces together, the business case for adopting SBTi becomes incredibly compelling. For any company focused on long-term success, aligning with the SBTi is no longer optional. You can see how major brands are putting these goals into practice by reading our piece on lessons from leaders achieving net-zero.

Navigating The SBTi Target Validation Process

Making a public commitment to a science-based target is a big first step. But it's the official validation process that turns that pledge into a credible, globally recognised achievement. It might seem daunting at first, but the journey follows a clear, logical path designed to ensure every target is both ambitious and achievable.

Think of it like getting a professional certification. You publicly declare your intention to qualify, then you do the hard work of studying and preparing, you submit your work for review by experts, and finally, you earn the official credential. The SBTi validation process operates on a similar principle, giving you a clear roadmap from intention to action.

Kicking Things Off: The Commitment

Your journey officially begins when you sign and submit a commitment letter. This is your company's public declaration of intent, and it also starts a 24-month countdown. That's the window you have to develop your targets and submit them to the SBTi's expert team for validation.

This two-year period is crucial. It gives you the necessary time to do the foundational work: getting a crystal-clear picture of your company's entire carbon footprint. This isn't a rough estimate; it's a deep dive.

Building Your Science-Aligned Target

This is where the real heavy lifting happens. Before you can set a meaningful target, you need a comprehensive emissions baseline—a complete inventory of your greenhouse gas output across all three scopes.

• Scope 1: These are the direct emissions from sources your company owns or directly controls, like factory smokestacks or company vehicles.
• Scope 2: Think of these as indirect emissions from the power you buy—the electricity, heating, and cooling that keeps your operations running.
• Scope 3: This is the big one. It covers all other indirect emissions up and down your value chain, from the raw materials you buy to how customers use your products.

Figuring out Scope 3 emissions, in particular, can be a complex task. If you're looking for a more detailed breakdown, our Scope 3 emissions tracking guide for modern enterprise teams is a great resource. Getting this baseline right is absolutely essential; it's the foundation your entire climate strategy is built on.

Once your footprint is accurately mapped, you can choose a method for setting your target. The SBTi provides a few different pathways. For example, the Absolute Contraction approach requires a straightforward percentage reduction in emissions across your business, in line with what science says is needed to limit warming to 1.5°C.

The whole workflow, from measuring your footprint to getting that final validation, is a systematic process.

As you can see, a validated target isn’t just a number you pick out of thin air. It’s the result of rigorous analysis and planning.

Getting The Green Light: Submission And Validation

With your targets defined, the next step is to fill out the official Target Submission Form. This document lays out all your work for the SBTi, including your baseline emissions data, the boundaries of your target, your level of ambition, and your proposed timeline. It's your evidence-backed case to prove your targets are solid.

The SBTi’s technical experts then put your submission under the microscope. They meticulously review everything to ensure your goals meet all the strict criteria for 1.5°C alignment.

To give you a clearer picture, the entire journey can be broken down into five distinct stages.

The 5 Key Stages of SBTi Target Validation

Once your company successfully navigates this process, your targets are officially approved and published on the SBTi website. This validation is more than just a rubber stamp—it’s a powerful signal to investors, customers, and employees that your climate commitments are built on a foundation of science, not just good intentions.

The Business Case for Setting Science Based Targets

Let’s be clear: getting a target validated by the Science Based Targets initiative isn’t just about making an environmental statement. It's a sharp, strategic move with very real upsides. When you commit to this framework, you’re future-proofing your business and turning a climate pledge into a genuine driver of innovation and growth. Suddenly, sustainability stops being a cost and starts becoming a serious competitive edge.

This commitment broadcasts a powerful message. In a world rightly sceptical of "greenwashing," an SBTi-validated target is the gold standard of climate credibility. It helps you build a resilient brand reputation that connects with customers, partners, and regulators who are all looking for real environmental action, not just clever marketing.

Sparking Innovation and Finding Efficiencies

The journey of setting and chasing a science-based target forces you to look at every corner of your business in a new light. This goes way beyond switching to LED bulbs. It means digging into the hidden inefficiencies within your supply chain, your production lines, and how you use energy. You’d be surprised at the cost-saving opportunities this kind of deep dive can uncover.

By aiming for serious emissions cuts, companies are nudged—or even shoved—towards innovation. You might end up investing in smarter logistics, embracing circular economy models, or completely redesigning products to lighten their carbon footprint. These aren't just climate wins; they often lead to leaner, more profitable operations. What starts as a climate goal frequently becomes a catalyst for making the entire organisation better.

Pursuing a science-based target is a powerful mechanism for de-risking a business. It prepares you for the inevitable tightening of climate regulations, potential carbon taxes, and shifting market demands, ensuring long-term stability in a decarbonising world.

Boosting Investor Confidence and Access to Capital

More and more, investors are looking at a company’s climate performance as a core indicator of its long-term health and the quality of its management. A validated target from the Science Based Targets initiative (SBTi) is proof of foresight and solid risk management. It shows your leadership team is on the front foot, not just reacting to the biggest challenge of our time.

This credibility pays off in tangible financial ways:

• Stronger Investor Relations: Companies with validated targets are often seen in a better light by institutional investors, who view climate risk as a direct financial risk.
• Easier Access to Capital: Many banks and financial institutions now offer better terms or dedicated "green financing" to businesses with strong, verifiable sustainability plans.
• Attracting the Best People: Top talent wants to work for companies that are part of the solution. A clear commitment to climate action is a massive draw for attracting and keeping great employees who care about purpose as well as pay.

Ultimately, setting a science-based target is a loud-and-clear declaration that your business is built to last. It proves that what’s good for the planet is fundamentally good for the bottom line, creating a powerful cycle of sustainable growth and market leadership.

How a Czech Energy Leader Embraced Science-Based Targets

It's one thing to talk about frameworks and another to see them in action. Let's look at a real-world example to understand the impact of the Science Based Targets initiative (SBTi). A perfect case study is the CEZ Group, the biggest name in the Czech energy sector. Their journey shows how even a major player in a traditionally carbon-heavy industry can make a serious pivot towards a sustainable future.

For an energy giant like CEZ, setting a bold climate target isn't just a simple pledge. It demands a complete overhaul of their strategy, day-to-day operations, and long-term investment plans. And that's exactly what they've done, charting a new course that lines up with what the latest climate science says is necessary.

This is a huge deal, especially within the Central European energy scene. It sends a powerful message to the market, investors, and other companies that decarbonisation isn't just a "nice-to-have"—it's quickly becoming a central strategic priority for the region's leaders.

CEZ Group’s Net-Zero Commitment

CEZ Group's commitment is a massive step forward for corporate climate action in Czechia. The company has officially set a validated net-zero target for 2040, a full decade ahead of many of its international counterparts. This ambitious goal was put under the microscope by SBTi experts, who confirmed that CEZ's plans are genuinely aligned with the critical goal of limiting global warming to 1.5°C.

This validation puts CEZ at the forefront of corporate climate responsibility in the country. You can dive deeper into their validated targets and what this means for the Czech energy sector in CEZ Group's official announcement.

By getting the SBTi stamp of approval, CEZ turned its climate pledge from a corporate statement into a scientifically-backed roadmap. It has set a new standard for accountability in the region's energy sector.

The Strategic Steps to Decarbonisation

Hitting this target means making real, substantial changes to how they do business. CEZ has built its strategy on several key pillars, all designed to systematically shrink its carbon footprint over the next two decades.

Their roadmap involves concrete actions, including:

• Phasing Out Coal: Making a decisive break from coal-fired power, which was once the backbone of their operations.
• Investing in Renewables: Funnelling huge investments into renewable energy, especially solar and wind, to fill the gap left by fossil fuels.
• Modernising the Grid: Upgrading their energy infrastructure to handle more decentralised renewable sources and boost overall efficiency.
• Exploring Nuclear Energy: Continuing to use and develop nuclear power as a reliable, low-carbon source of baseload electricity.

The CEZ Group's story proves that even massive, complex companies in tough sectors can align their goals with a 1.5°C future. Their commitment offers a practical blueprint, showing that with clear vision and a science-based approach, even the most challenging industrial transitions are within reach.

Understanding Czechia's National Climate Landscape

To really see why corporate climate action matters so much, it helps to zoom out and look at the bigger picture. A company’s individual efforts, like setting a target with the Science Based Targets initiative (SBTi), are vital pieces of a much larger puzzle: Czechia’s own climate goals.

The Czech Republic has committed to hitting net-zero emissions by 2050, falling in line with the European Union's broader climate ambitions. This national pledge sets the tone for the entire economy, sending a clear signal that the private sector must play a central role in the country's move away from carbon.

But there’s a noticeable disconnect between this high-level ambition and what’s actually happening on the ground in the corporate world. While the 2050 target is officially on the books, the number of Czech companies with validated science-based targets is surprisingly low.

The Ambition Gap in Czechia

This gap presents a huge opportunity for businesses across the country. Czechia’s national greenhouse gas emissions hover around 106 million tonnes of CO2 equivalent (MtCO2e) each year. Despite the national commitment, real, validated targets are mostly found among a small group of pioneering firms. There’s a massive amount of room for more businesses to get involved.

You can dive deeper into the data by exploring Czechia's climate profile on Zero Tracker.

This context makes the Science Based Targets initiative (SBTi) explained in this guide more than just an international standard; it's a practical tool for Czech companies to make a real difference. For any business here, adopting an SBTi-validated target is one of the strongest ways to help close the national ambition gap.

By aligning with the SBTi, Czech businesses can move from being passive observers of national policy to active drivers of it, ensuring the country's 2050 net-zero target is not just a promise, but an achievable reality.

Every new company that commits to a science-based target builds momentum. It proves that economic growth and serious decarbonisation can, and must, happen together. This collective effort is what will finally turn national climate goals into tangible progress, paving the way for a more sustainable and competitive future for the entire Czech economy.

Got Questions About the SBTi? We’ve Got Answers.

When you start digging into the Science Based Targets initiative, a lot of questions pop up. It’s completely normal. Let's tackle some of the most common ones to clear things up and help you see the path forward.

Net-Zero vs. Science-Based Target: What’s the Difference?

It helps to think of this as a marathon with checkpoints. A science-based target (SBT) is your near-term checkpoint—a goal to slash emissions over the next 5-10 years to stay on the 1.5°C path. It’s all about immediate, aggressive action.

A net-zero target is the marathon’s finish line. This is your long-term commitment to cut emissions down to almost zero across your entire value chain and then neutralise any residual emissions that are impossible to eliminate. The SBTi requires companies to set both, ensuring today's actions are genuinely building towards a credible long-term goal.

Is the SBTi Just for Big Corporations?

Absolutely not. While it's true that you often hear about huge multinationals setting targets, the SBTi has a specific, streamlined route designed for Small and Medium-sized Enterprises (SMEs).

This pathway has simpler requirements and an easier validation process, making it totally achievable for smaller companies to set meaningful, science-backed climate goals without needing a massive sustainability department.

What Exactly Are Scope 1, 2, and 3 Emissions?

Getting your head around these three "scopes" is one of the first and most important steps. It's how the SBTi framework categorises all your company's greenhouse gas emissions.

• Scope 1: These are the direct emissions from things you own or control. Think of the fuel burnt in your company vehicles or the emissions from your factory's on-site boilers.
• Scope 2: This covers the indirect emissions from the energy you buy. It’s mainly the electricity, steam, heating, and cooling you purchase from a utility provider.
• Scope 3: This is the big one. It includes every other indirect emission up and down your entire value chain—from the materials you buy from suppliers to what happens when customers use (and eventually dispose of) your products.

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Nailing down this data, especially for Scope 3, is a massive challenge but essential for getting your targets approved. A platform like Carbonpunk can automate the heavy lifting, giving you audit-ready data and clear insights to make sure you hit your targets without the headache.