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Science Based Targets initiative

The Science Based Targets initiative (SBTi) is a non-profit organization founded in 2015 that enables companies and financial institutions to set and validate greenhouse gas emissions reduction targets aligned with climate science, specifically to limit global warming to 1.5 °C above pre-industrial levels in line with the Paris Agreement.^[1] It operates as a registered charity in England and Wales, with a subsidiary providing target validation services, and has developed standards such as the Corporate Net-Zero Standard and Financial Institutions Net-Zero Standard to guide near-term and long-term decarbonization pathways.^[1] Initially launched as a collaboration between CDP, the United Nations Global Compact, the We Mean Business Coalition, the World Resources Institute (WRI), and the World Wildlife Fund (WWF), SBTi has grown to become a key framework for corporate climate accountability, with over 9,000 companies securing validated targets that cover billions in revenue and millions of tonnes of annual emissions.^[1]^[1] These targets require measurable progress on scopes 1, 2, and often 3 emissions, promoting sector-specific guidance for high-impact industries like cement and aviation.^[1] By 2025, the initiative had surpassed 10,000 commitments from businesses worldwide, positioning it as a widely adopted "gold standard" for science-aligned climate goals despite voluntary participation.^[2]^[1] Notable achievements include accelerating corporate adoption of ambitious reductions, with validated targets demonstrating a 227% increase in comprehensive near-term and net-zero planning in recent years, influencing investor expectations and supply chain demands for verified climate strategies.^[3] However, SBTi has encountered significant controversies, particularly in 2024 when board proposals to allow limited carbon offsetting for residual net-zero emissions—potentially up to 10-20%—sparked an internal staff revolt, calls for CEO resignation, and external accusations of undermining science-based rigor in favor of greenwashing.^[4]^[5]^[6] This schism highlighted tensions between absolute emissions cuts and pragmatic use of credits, leading to governance reforms but raising questions about the initiative's ability to enforce causal reductions versus symbolic commitments amid lobbying pressures.^[5]^[7]

History

Founding and Initial Development

The Science Based Targets initiative (SBTi) originated in 2014 as an informal collaboration among environmental organizations seeking to encourage corporations to adopt emissions reduction targets grounded in climate science. Founding partners included the Carbon Disclosure Project (CDP), United Nations Global Compact (UNGC), World Resources Institute (WRI), World Wildlife Fund (WWF), and the We Mean Business Coalition.^[1] These entities pooled expertise without a dedicated budget, relying on a small group of individuals who managed the effort alongside their primary employment.^[8] The initiative's core aim was to elevate corporate climate ambition by developing methodologies for targets aligned with a 2°C global warming limit, drawing from the Intergovernmental Panel on Climate Change's Fifth Assessment Report and International Energy Agency scenarios.^[8] Early efforts focused on creating tools and guidance for companies to calculate and validate science-based greenhouse gas reduction commitments, emphasizing sector-specific pathways to avoid arbitrary pledges. This approach prioritized empirical alignment with physical climate constraints over voluntary or business-as-usual reductions.^[9] Initial development proceeded modestly, with the group establishing validation protocols and piloting targets for early adopters by 2015, when public operations formalized.^[10] Resource constraints limited scale, but the framework gained traction through partnerships, enabling independent assessment of corporate submissions. Over the subsequent years, SBTi refined its criteria, transitioning toward 1.5°C compatibility as scientific consensus evolved, while registering as a charity in England and Wales to support structured governance.^[1]^[8]

Expansion and Key Milestones

Following its founding, the Science Based Targets initiative (SBTi) underwent rapid expansion, driven by increasing corporate adoption of science-based emissions targets. By mid-2022, over 3,000 companies had committed to setting such targets, with more than 1,000 pursuing net-zero goals.^[8] The number of validated targets rose from 2,080 at the end of 2022 to 4,204 by the end of 2023, reflecting a 102% year-over-year increase amid broader geographic and sectoral penetration.^[11] As of 2025, over 9,000 companies had achieved validated targets, while nearly 11,000 entities worldwide—spanning corporations and financial institutions—either held validated targets or had committed to validation, covering substantial portions of global market capitalization and emissions.^[1]^[1] This growth paralleled an internal scaling, with staff expanding from a small team to over 50 experts by 2022 to handle surging demand for target validation and guidance.^[8] Key methodological advancements marked the initiative's evolution toward greater ambition. In late 2018, SBTi shifted its alignment from 2°C to 1.5°C pathways, informed by the IPCC Special Report on Global Warming of 1.5°C.^[8] October 2021 saw the release of the world's first Corporate Net-Zero Standard, establishing criteria for long-term emissions neutrality.^[8] By July 2022, validation was restricted to 1.5°C-aligned targets for Scope 1 and 2 emissions, phasing out less stringent options to align with heightened climate imperatives.^[8] Organizational milestones underscored SBTi's maturation into an autonomous entity. In February 2022, Luiz Fernando do Amaral was appointed as the first CEO to accelerate business strategy and global uptake.^[12] June 2022 brought the announcement of plans to incorporate as a formal institution separate from its founding partners, followed by actual incorporation in June 2023 and charitable status recognition by the Charity Commission for England and Wales later that year.^[12]^[13] The same month in 2023, the independent Technical Council convened its inaugural meeting to govern technical standards, enhancing oversight.^[13] A Compliance Director was appointed in February 2023 to bolster enforcement as a voluntary standard-setter.^[13] Sector-specific expansions included new partnerships, such as with the Carbon Risk Real Estate Monitor in January 2022 for 1.5°C-aligned real estate methodologies, and releases of guidance for cement, FLAG (forests, land, and agriculture), and steel sectors in September 2022.^[12] By 2024, adoption milestones encompassed 1,000 Japanese companies with targets, 100 financial institutions achieving validation, and 800 net-zero targets approved, signaling deeper penetration in Asia and finance.^[14]

Mission and Methodology

Core Objectives and Alignment with Climate Goals

The Science Based Targets initiative (SBTi) aims to enable companies and financial institutions to establish greenhouse gas emissions reduction targets that are consistent with the level of decarbonization required to achieve net-zero emissions globally by no later than 2050, thereby contributing to limiting global warming to 1.5°C above pre-industrial levels.^[1] This objective is pursued through the development of standards, tools, and guidance that translate climate science into actionable corporate commitments, emphasizing credible and verifiable reductions across scopes 1, 2, and 3 emissions.^[15] As of 2025, over 9,000 entities have had targets validated under this framework, with more than 2,800 committed to net-zero alignment.^[1] SBTi's targets are designed to align with the Paris Agreement's goals of holding the increase in global average temperature to well below 2°C and pursuing efforts to limit it to 1.5°C, drawing on integrated assessment models and sectoral pathways from the Intergovernmental Panel on Climate Change (IPCC).^[16] Specifically, validated targets must demonstrate compatibility with low-carbon transition scenarios that meet these temperature thresholds, often requiring near-term reductions of at least 4.2% annually (linear) for 1.5°C alignment or 2.1% for well-below 2°C pathways, escalating to long-term net-zero commitments involving at least 90% absolute reductions in value chain emissions by 2050, with residual emissions neutralized via verified removals.^[17] This alignment is intended to mobilize private sector action in support of broader societal decarbonization, though critics argue that voluntary corporate targets, even when validated, may insufficiently account for overshoot risks or non-linear emission trajectories emphasized in IPCC assessments.^[18] The initiative's methodology ties corporate pledges to empirical climate modeling by requiring targets to be benchmarked against economy-wide or sector-specific decarbonization rates derived from sources like the IPCC's Fifth and Sixth Assessment Reports, ensuring that aggregated commitments could theoretically contribute to Paris-compliant outcomes if scaled sufficiently.^[19] For financial institutions, separate standards focus on aligning investment and lending portfolios with net-zero trajectories, using tools like the Portfolio Alignment Rating to assess financed emissions against 1.5°C benchmarks.^[1] While SBTi positions these objectives as a "race to the top" for corporate ambition, post-Paris data indicates that validated targets have driven faster decarbonization among participants—averaging 21% emissions cuts from 2015 to 2020—compared to non-participants, though global adoption remains limited relative to total corporate emissions.^[20]^[21]

Target-Setting Framework and Criteria

The Science Based Targets initiative (SBTi) establishes a framework for corporate greenhouse gas (GHG) emissions reduction targets that purportedly align with climate science pathways limiting global temperature rise to 1.5°C or well below 2°C above pre-industrial levels, consistent with the Paris Agreement.^[22] This involves near-term targets covering 5-10 years from submission (with a recommended 2030 endpoint) and long-term net-zero targets by 2050 at the latest, requiring at least 90% absolute emissions reductions across scopes 1, 2, and 3, with residual emissions offset only by permanent carbon dioxide removal.^[23] ^[22] Targets must be developed using SBTi-approved methods, such as absolute contraction, physical intensity, or economic intensity, selected via sector-specific or cross-sector tools like the Sectoral Decarbonization Approach (SDA) for high-emission industries.^[24] ^[25] Key criteria for validation under the Corporate Near-Term Criteria (version 5.3, effective September 15, 2025) mandate coverage of scope 1 (direct) and scope 2 (purchased energy) emissions in full, with ambition aligned to 1.5°C pathways; scope 3 (value chain) targets are required if they constitute 40% or more of total emissions, covering at least 67% of those emissions via reduction or supplier engagement targets, and aligned to well-below 2°C.^[23] Base years must be no earlier than 2015 and consistent across scopes 1+2, with allowances for rebasing only under specific conditions like structural changes exceeding 5% of emissions.^[23] Exclusions are limited to 5% or less of relevant emissions, and fossil fuel-related companies face additional requirements for scope 3 category 11 (use of sold products).^[23] Sector-specific guidance adapts these for industries like oil and gas, cement, or aviation, using tailored decarbonization levers and benchmarks derived from integrated assessment models.^[24] Validation occurs through a structured process managed by SBTi Services: companies commit publicly, measure emissions per GHG Protocol standards, develop targets using SBTi tools, submit via the Validation Portal, and undergo technical assessment within approximately 12 weeks, ensuring methodological compliance and scientific alignment.^[16] ^[26] Approved targets require public announcement on the SBTi website within six months and periodic review every five years to confirm ongoing validity amid evolving science.^[23] The framework emphasizes transparency, with targets delisted for non-compliance, though critics have noted potential leniency in scope 3 engagement targets allowing indirect rather than direct reductions.^[16]

Organizational Structure

Founding Partners and Governance

The Science Based Targets initiative (SBTi) was established in 2015 as a collaborative effort among four non-profit organizations: CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).^[1] These founding partners provided the initial framework for developing standards, tools, and guidance to enable companies to align greenhouse gas emissions reductions with climate science.^[27] The initiative originated from discussions in 2014 aimed at raising corporate climate ambition through science-aligned targets.^[8] Prior to formal incorporation, SBTi operated as a partnership-based entity under the oversight of its founding organizations, which jointly managed strategic direction and target validation processes.^[28] In June 2023, SBTi was incorporated as a distinct entity, followed by registration as a charity in England and Wales in November 2023, transitioning to an independent standards system owner responsible for advancing corporate climate action.^[29] Current governance is led by a Board of Trustees, which holds ultimate responsibility for strategic oversight, fiduciary duties, and ensuring alignment with the initiative's mission; the board includes a permanent United Nations Advisor and comprises leaders in corporate climate action.^[29] ^[30] An Executive Leadership Team handles day-to-day operations and strategy implementation.^[29] Technical decisions on standards and methods are managed by an independent Technical Council, established in March 2023, which deliberates on target-setting methodologies and enhances rigor through expert input.^[29] ^[31] SBTi maintains subsidiaries for operational separation: SBTi Services Limited conducts impartial target validations to mitigate conflicts of interest, while SBTi gGmbH supports staffing in Germany.^[29] This structure evolved from the founding partnership model to support scalability amid growing corporate commitments, with the Technical Council providing normative authority over technical outputs.^[29]

Technical and Oversight Bodies

The SBTi Technical Council serves as the primary independent body responsible for overseeing normative technical decision-making, including the review, approval, and recommendation for adoption of standards, methods, and guidance documents.^[32] Composed of independent experts appointed for renewable two-year terms, the Council operates with delegated authority from the SBTi Board of Trustees, focusing on public-interest deliberations related to emissions benchmarks, mitigation pathways, and supplementary guidance such as position papers.^[29] ^[32] A designated Chair facilitates liaison with the Board, ensuring recommendations are forwarded for final adoption while maintaining the Council's autonomy through transparent processes, including publicly available meeting minutes.^[32] Supporting the Technical Council's work are advisory structures that provide expert input without decision-making authority. The Technical Advisory Group (TAG), previously comprising specialists from business, academia, government, non-profits, and multilateral organizations, offered recommendations on climate mitigation and target-setting methodologies until its disbandment in 2025, after which it was succeeded by ad-hoc Expert Working Groups (EWGs) convened for specific projects.^[33] Similarly, the Scientific Advisory Group (SAG), drawn from climate science and mitigation experts, evaluates the scientific robustness of pathways and methods underpinning SBTi outputs.^[33] These groups ensure stakeholder-informed development of technical resources, enhancing the evidentiary basis for standards while deferring final oversight to the Technical Council.^[29]

Standards and Guidance

General Emissions Reduction Standards

The Science Based Targets initiative (SBTi) establishes general emissions reduction standards primarily through its Corporate Near-Term Criteria and Corporate Net-Zero Standard, which apply to companies without sector-specific guidance for scopes 1 and 2 greenhouse gas (GHG) emissions. These standards require near-term targets covering 5-10 years from submission, aligned with either 1.5°C or well-below 2°C warming pathways derived from IPCC scenarios, using methods such as the Absolute Contraction Approach (ACA) for absolute reductions or intensity-based approaches only if they demonstrably achieve equivalent absolute emissions cuts.^[23]^[34] Targets must encompass at least 95% of scope 1 (direct) and scope 2 (indirect from purchased energy) emissions, with base years selected from the past 10 years or the most recent reporting year, ensuring forward-looking ambition exceeds business-as-usual projections.^[23]^[35] Under the ACA, companies commit to uniform absolute emissions reductions mirroring global decarbonization trajectories, typically requiring annual linear cuts of approximately 4.2% for 1.5°C alignment from a 2018 baseline, escalating to around 50% cumulative reductions by 2030 depending on the base year.^[34]^[36] Intensity targets, denominated by physical output (e.g., tons of product) or economic value (e.g., revenue), are permitted for scope 1 and 2 but must be validated against approved sector pathways to confirm they deliver absolute reductions consistent with climate science, prohibiting scenarios where emissions rise despite per-unit improvements.^[23]^[25] For 1.5°C ambition, targets must match or exceed the trajectory of at least the median reduction rate from ensemble models in integrated assessment models, while well-below 2°C allows slightly less stringent pathways.^[23] Long-term standards integrate with near-term targets, mandating net-zero commitments by no later than 2050, where companies achieve at least 90% absolute reductions in scopes 1 and 2 (covering 95% of emissions) through mitigation, neutralizing residuals via permanent carbon removal offsets rather than temporary avoidance credits.^[22]^[37] These criteria emphasize GHG Protocol compliance for inventory accuracy and require public disclosure of methodologies, with validation by SBTi technical experts to ensure targets are "science-based" by benchmarking against physical climate constraints rather than voluntary benchmarks.^[23]^[16] Ambition levels are non-substitutable; companies selecting 1.5°C pathways face stricter validation, reflecting the initiative's reliance on scenario analysis from sources like the IPCC's Representative Concentration Pathways.^[23]

Sector-Specific and Specialized Guidance

The Science Based Targets initiative (SBTi) provides sector-specific guidance to accommodate the distinct emission profiles and decarbonization pathways of high-impact industries, where generic corporate criteria may not suffice due to process-based emissions, supply chain complexities, or infrastructural constraints. This tailored approach ensures targets remain aligned with 1.5°C-compatible trajectories from integrated assessment models, often requiring sector benchmarks for absolute or intensity reductions in Scopes 1, 2, and 3 emissions.^[16] Such guidance is mandatory for companies in sectors like financial institutions and buildings if revenue or emissions thresholds are met, while optional but recommended for others to enhance feasibility and ambition.^[35] Key sectors with dedicated standards include oil and gas, where guidance emphasizes reducing methane leaks, flaring, and upstream production emissions, recognizing the sector's outsized role in global fossil fuel supply.^[38] In steel production, finalized criteria mandate a "core boundary" method focusing on blast furnace-basic oxygen furnace routes, with pathways for absolute contractions up to 5-7% annually through electrification and hydrogen use.^[39] The power sector features draft net-zero standards released September 3, 2025, incorporating utility-specific metrics for coal phase-out and renewable integration, building on near-term criteria for 80-100% emissions cuts by 2030 in high-income regions.^[40] Aviation, under air transport criteria, directs targets toward 10-20% fuel efficiency gains and scaled sustainable aviation fuel adoption, addressing Scope 3 dominance from operations.^[24] The buildings sector's framework, unveiled August 28, 2024, targets embodied and operational carbon in construction and real estate, urging 40-60% reductions by 2030 via material substitutions and efficiency retrofits, with applicability to developers and financiers.^[41] Forests, land, and agriculture (FLAG) guidance supports supply chain interventions for deforestation avoidance and regenerative practices.^[24] Specialized guidance for financial institutions, distinct from corporate standards, culminated in the Net-Zero Standard launched July 22, 2025, applicable to entities deriving 5% or more revenue from lending, investing, or insurance.^[42] It mandates portfolio-level targets using financed emissions protocols, with near-term criteria (updated May 2024) requiring 25-50% reductions in high-impact sectors like power and transport by 2030, supplemented by client engagement thresholds of 70-80% coverage.^[43] Over 165 institutions have validated targets under this framework, which permits sector-specific decile benchmarks and third-party tools for interoperability, though critics note challenges in measuring indirect influence on real-economy transitions.^[42] For unlisted sectors, SBTi defaults to cross-sector tools or corporate net-zero criteria, with classifications adapted from Global Reporting Initiative activity groups.^[44]

Adoption and Verification

Company Commitments and Validation Process

Companies publicly commit to the Science Based Targets initiative (SBTi) by registering on the SBTi Services Validation Portal and announcing their intention to develop and validate science-based emissions reduction targets aligned with the Paris Agreement's goal of limiting global warming to 1.5°C above pre-industrial levels.^[16] This commitment grants a 24-month window to submit targets for validation, during which organizations must follow SBTi guidance to formulate near-term (5-10 year horizon) or long-term/net-zero targets covering absolute emissions reductions or intensity-based metrics for Scope 1 (direct) and Scope 2 (purchased energy) emissions, with Scope 3 (value chain) targets required for near-term commitments in most cases and integral to net-zero pathways.^[45] ^[26] Target development begins with companies using SBTi's sector-specific or cross-sector criteria, available through tools like the Getting Started Navigator and resources on the SBTi Academy platform, to ensure alignment with climate science models such as those from the Intergovernmental Panel on Climate Change (IPCC).^[16] Submissions are made electronically via the Validation Portal, accompanied by a fee—typically $4,950 for initial validation covering administrative and expert review costs—and detailed documentation justifying the target's ambition, baseline year, and boundary definitions. SBTi Services, a wholly-owned subsidiary established in 2023 to handle validations independently, conducts the assessment, involving technical experts who evaluate compliance against published criteria within approximately 12 weeks.^[26] ^[46] Upon successful validation, companies receive approval and must publicly communicate their targets—via press release, sustainability report, or the SBTi Target Dashboard—within six months, enabling listing as "target set" on SBTi's public registry, which as of 2024 tracked over 7,000 validated commitments.^[47] Rejections or requests for revision occur if targets fail criteria, such as insufficient ambition (e.g., below 4.2% annual linear reduction for near-term Scope 1 and 2 targets) or inadequate Scope 3 coverage, prompting resubmission after revisions.^[26] For net-zero targets, validation demands at least 90% absolute reductions by 2050, with residual emissions neutralized only through verified removals, excluding broad offsets.^[22] This process emphasizes transparency, with all validated targets subject to ongoing verification against annual progress reports.^[35]

Monitoring, Reporting, and Delistings

Companies committed to the Science Based Targets initiative (SBTi) are required to annually disclose their company-wide greenhouse gas (GHG) emissions across Scopes 1, 2, and 3 (where targets include Scope 3), along with progress toward validated science-based targets, to ensure accountability.^[48] This reporting must be public, typically submitted through established platforms such as CDP's disclosure system or a company's own sustainability reporting, adhering to standards like the GHG Protocol for emissions accounting.^[48]^[49] The SBTi does not conduct independent verification of these annual reports but relies on self-reported data and encourages alignment with third-party assurance mechanisms as part of its broader measurement, reporting, and verification (MRV) framework.^[50] Failure to submit annual progress reports for two consecutive years results in a change of status on the SBTi target dashboard, potentially leading to delisting from active commitments.^[47] Companies must also review and potentially update their targets every five years, starting from the validation trigger date, to reflect evolving science and business conditions; non-compliance with this review cycle can trigger status downgrades or removals.^[51] Delistings occur for various reasons, including expiration of unrenewed targets, withdrawal of commitments, failure to validate targets within the 24-month commitment window, or insufficient action on required elements like Scope 3 emissions reductions.^[47]^[52] A significant enforcement action took place on March 7, 2024, when SBTi removed net-zero commitments from 239 companies associated with the "Business Ambition for 1.5°C" campaign, primarily because these entities had not validated corresponding near-term science-based targets despite earlier pledges.^[53] Of these, approximately 60% had validated near-term targets but lacked net-zero validation, highlighting gaps in progressing from high-level ambitions to granular, verifiable goals.^[53] Notable delisted companies included Microsoft, Procter & Gamble, Amazon, and Netflix, which had made early net-zero announcements without fully aligning subsequent near-term submissions.^[54]^[55] Scope 3 emissions—indirect emissions from value chains—have been a recurring factor in delistings, as SBTi criteria mandate their inclusion for comprehensive targets, yet many companies struggle with measurement and reduction due to data limitations and supply chain complexities.^[52] In January 2025, SBTi delisted over 200 additional companies from its net-zero roster for failing to address Scope 3 commitments adequately or meet broader progress milestones, underscoring the initiative's emphasis on verifiable supply chain decarbonization over aspirational claims.^[56] These actions reflect SBTi's policy of enforcing timelines and criteria to maintain credibility, though critics argue they expose inconsistencies in how legacy commitments are handled versus new validations.^[57] Post-delisting, companies' statuses shift to "commitment removed" on the dashboard, barring re-commitment without addressing prior shortfalls, which has prompted some firms to pursue alternative frameworks.^[58]

Impact and Effectiveness

Reported Achievements and Growth Metrics

The Science Based Targets initiative (SBTi) reports substantial growth in corporate adoption of validated science-based emissions reduction targets. By the end of 2023, 4,205 companies had achieved validation, representing a 102% increase from 2,080 at the end of 2022, with 2,125 companies setting targets for the first time that year.^[59] Total commitments to develop targets also rose 113% over 2022 levels.^[59] This expansion contributed to SBTi-aligned companies covering 39% of global market capitalization by the end of 2023.^[59] Adoption accelerated further into 2025. As of January 2025, validated targets exceeded 7,000 companies, while total commitments surpassed 10,000.^[2] From the end of 2023 to the end of the second quarter of 2025, the number of companies with validated near-term targets grew by 97%, and those with both near-term and net-zero targets increased by 227%.^[3] By the end of 2024, SBTi-aligned entities accounted for 41% of global market capitalization, up from 39% the prior year.^[3] The share of validated companies holding both near-term and net-zero targets climbed from 17% at the end of 2023 to 33% by the end of 2024 and 38% by the second quarter of 2025.^[3] Sectoral growth in 2023 included an 83% rise among financial institutions and a 222% surge in the biotech, health, and pharmaceuticals sector.^[59] Regionally, Asia recorded 134% growth in validated targets from the end of 2023 to the second quarter of 2025, driven by a 228% increase in China (from 137 to 450 companies).^[3] Europe maintained the largest absolute number of adopters, followed by Asia and North America.^[60] By August 2024, cumulative validated targets reached over 6,000 companies, with net-zero targets numbering in the hundreds across adopters.^[60]

Empirical Assessments and Criticisms of Outcomes

Empirical studies on companies adopting Science Based Targets (SBTs) have documented notable reductions in Scope 1 and 2 emissions among participants. For instance, analysis of SBTi members from 2015 to 2019 showed a collective 35.6% decline (288.2 MtCO₂e) from a baseline of 808.7 MtCO₂e, with those holding absolute targets averaging -7.8% annual reductions, exceeding expectations by 34 MtCO₂e in 2019.^[61] Similarly, SBT-adopting firms reduced combined emissions by 29% between 2015 and 2020, outperforming non-adopters in decarbonization while maintaining profitability.^[62] These firms were generally on track or surpassing targets aligned with 2°C scenarios, with approximately 70% projected to meet 2030 goals.^[61] However, progress assessments reveal inconsistencies, with only 55% of SBTi targets on track or achieved as of recent evaluations. Notably, 30% of targets showed increased emissions relative to base years, while 15% achieved partial reductions insufficient for trajectory compliance.^[63] Factors correlating with better outcomes included absolute rather than intensity-based targets, longer timeframes, and integration of climate metrics into executive remuneration, though more ambitious goals often progressed slower unless explicitly SBTi-validated.^[63] Delays in material reductions post-adoption—typically emerging only after several years—suggest implementation lags, potentially limiting short-term impact.^[64] Criticisms highlight methodological limitations in SBT frameworks that may undermine outcome reliability. The approach's reliance on aggregated IPCC models overlooks sector-specific dynamics and conflates CO₂ net-zero timelines with broader greenhouse gas balances, where pathways indicate ~2070 for full parity rather than 2050.^[18] Arbitrary rules, such as uniform reduction rates and offset restrictions, reduce adaptability, while "grandfathering" provisions grant higher future allowances to early high emitters—90% of SBTi-aligned firms being in advanced economies—potentially entrenching inequities without compelling causal evidence of additionality beyond self-selection among already proactive entities.^[18] Accountability gaps further erode confidence in reported outcomes. Among firms with emissions targets (including SBT-aligned), 8.5% failed by 2020, yet only 33.3% acknowledged shortfalls in sustainability reports, with minimal market, media, or ESG repercussions.^[65] An additional 30.7% ceased disclosure without resolution, enabling benefits from target announcements—such as elevated ESG scores—without penalties for non-delivery.^[65] Such patterns raise concerns over greenwashing, as voluntary participation selects for larger, resource-rich firms whose reductions, while verifiable in aggregates, represent a fraction of global emissions and may not scale without enforced mechanisms. Overall, while SBTi correlates with decarbonization in adopters, empirical scrutiny underscores nascent data, selection biases, and structural incentives favoring disclosure over verifiable, systemic impact.^[66]

Controversies and Criticisms

Carbon Offsets and Greenwashing Accusations

The Science Based Targets initiative (SBTi) encountered significant internal and external backlash in April 2024 over a board proposal to permit the use of environmental attribute certificates, including voluntary carbon market credits, for abating Scope 3 emissions within corporate net-zero targets.^[67] This shift would have allowed companies to count offsets toward Scope 3 reductions after demonstrating progress in direct emissions cuts from their own operations and value chains, reversing SBTi's prior stance against such practices due to concerns over their reliability and potential for misleading claims.^[68] Critics, including environmental NGOs and scientists, argued that this would facilitate greenwashing by enabling firms to substitute verifiable emission reductions with often unverifiable offset purchases, which empirical analyses have shown frequently fail to deliver additional or permanent mitigation.^[69]^[70] SBTi staff responded with a leaked open letter on April 10, 2024, accusing the board of bypassing established technical governance processes and undermining the organization's integrity, with over 20 employees demanding the CEO's resignation.^[4] The letter highlighted that offsets lack scientific grounding for claiming emission abatements, as they do not directly reduce the purchaser's emissions and are prone to over-crediting, non-additionality, and impermanence issues documented in multiple studies.^[71] External analyses corroborated these risks; for instance, a 2024 Nature Communications study of corporate offset purchases found that 87% involved credits with high risk of inefficacy, predominantly low-cost options from avoidance projects rather than verified removals.^[69] SBTi's own July 2024 technical assessment echoed this, concluding that most carbon credits are "ineffective" for meeting emissions targets due to poor delivery of real-world reductions.^[70]^[72] In response to the uproar, SBTi issued a clarification on April 16, 2024, stating that no policy change had occurred and reaffirming that offsets could not substitute for direct Scope 1 and 2 reductions, though the review of Scope 3 applications continued amid calls for stricter exclusion.^[73] By March 2025, updated SBTi guidance maintained restrictions, permitting offsets solely for residual emissions post-ambitious reductions, but offset advocates criticized it as insufficient to spur high-integrity removal demand, while purists viewed even limited allowance as a concession to greenwashing pressures from corporate stakeholders.^[74] This episode exposed tensions between SBTi's science-aligned reduction focus and pragmatic accommodations for Scope 3 challenges, where offsets' causal inefficacy—failing to alter emitters' behavior—undermines the initiative's core premise of aligning targets with physical climate limits.^[5]^[75]

Scope 3 Emissions and Internal Governance Conflicts

The Science Based Targets initiative (SBTi) defines Scope 3 emissions as all indirect greenhouse gas emissions occurring in a company's value chain, including upstream activities like purchased goods and services and downstream activities such as product use and end-of-life disposal, which often constitute the majority of a company's total emissions footprint.^[24] For companies where Scope 3 emissions exceed 40% of their combined Scope 1, 2, and 3 emissions, SBTi criteria mandate setting science-based targets covering these emissions, either through supplier engagement or direct reduction targets aligned with 1.5°C pathways.^[35] This requirement has proven challenging for sectors like oil and gas, where Scope 3 emissions from fuel combustion can represent 80-90% of total emissions, prompting initial flexibilities such as delayed mandatory targets for high-emitting companies until 2025, though subsequent tightening led to validation failures and delistings for non-compliant firms like ExxonMobil in 2023.^[68]^[55] Internal governance tensions at SBTi intensified in early 2024 over proposed revisions to Scope 3 guidance, particularly the potential use of environmental attribute certificates (EACs), including carbon credits, for limited abatement of residual Scope 3 emissions. On April 9, 2024, the SBTi Board of Trustees issued a statement endorsing EACs as a supplementary tool for Scope 3, arguing they could address hard-to-abate emissions with strict guardrails, but this bypassed standard consultation with the Technical Advisory Group and staff, violating internal procedures established for standard revisions.^[67]^[68] Staff responded with a letter demanding the withdrawal of the plan and the resignation of CEO Luiz Fernando do Amaral, citing risks of greenwashing and insufficient evidence that offsets deliver verifiable reductions, as multiple studies have documented overcrediting and non-additionality in voluntary carbon markets.^[4]^[68] The controversy escalated into what Bloomberg termed the "SBTi Scope 3 Scandal" in a May 29, 2024, article, highlighting leaked internal communications and staff allegations of undue influence from carbon market stakeholders during a February 2024 Bezos Earth Fund meeting. SBTi refuted claims of procedural irregularities, asserting that the board's statement reflected preliminary research from over 400 evidence submissions in a September-November 2023 call, with no standards altered and a full discussion paper on Scope 3 revisions scheduled for July 2024 as part of the Corporate Net-Zero Standard update process.^[76] Despite this, 31 members of the Technical Advisory Group urged retraction, and the board's April 19, 2024, update reaffirmed commitment to debate but paused immediate implementation amid backlash. CEO do Amaral resigned in July 2024, amid ongoing scrutiny, contributing to repeated delays in Scope 3 guidance finalization, now projected beyond 2025.^[68]^[76]^[77] These conflicts underscore broader governance challenges at SBTi, where board decisions prioritizing pragmatic flexibilities clashed with technical staff's emphasis on stringent, direct decarbonization, potentially eroding the initiative's credibility given empirical evidence that offsets frequently fail to achieve claimed atmospheric benefits.^[68]^[5] Revisions remain under review through public consultations ending in late 2024, with SBTi emphasizing consensus-driven processes to balance feasibility and science-based integrity.^[76]

References

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The Science Based Targets initiative (SBTi) is a corporate climate action organization that enables companies and financial institutions worldwide to play ...Conflict of interest statement · Organizational governance
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Apr 22, 2024 · ... a policy shift at the Science Based Targets initiative that has exposed deep divisions on the best way to reach net zero.
[6]
The Science Based Targets Initiative is accused of greenwashing.
Apr 23, 2024 · While the organization's employees and Technical Council have criticized this statement as “undermining [their] government processes” , this ...
[7]
The SBTi scandal raises bigger questions about climate non-profits
Apr 15, 2024 · Sustainability in the private sector is plagued by false promises, bad incentives and unaccountability, but NGOs risk following suit.
[8]
The journey of the Science Based Targets initiative
Jun 27, 2022 · When SBTi started back in 2014, we had the vision of raising climate ambition in the corporate sector by driving the adoption of climate targets ...
[9]
[PDF] A product of the Science Based Targets initiative
Sep 22, 2015 · The Science Based Targets initiative encourages companies to set a minimum 56% reduction in order to more likely avoid the future carbon debt ...
[10]
[PDF] Raising the Bar - Science Based Targets Initiative
Dec 1, 2019 · When the Science Based Targets initiative (SBTi) was launched in 2015 our goal was clear: for companies across the globe to set targets to ...
[11]
Global and geographic growth - Science Based Targets Initiative
2,080 companies had validated science-based targets by the end of 2022, with that growing to 4,204 total in 2023, representing a 102% increase in the total ...<|separator|>
[12]
SBTi key milestones 2022 - Science Based Targets Initiative
The SBTi's fourth report examining progress in science-based targets globally, 'Looking back at 2022 and moving forward to 2023 and beyond', finds continued ...Missing: timeline | Show results with:timeline
[13]
SBTi key milestones 2023 - Science Based Targets Initiative
Key 2023 milestones included: Compliance Director appointment, Interim 1.5°C Aviation Pathway, Technical Council meeting, SBTi as independent entity, and Steel ...Missing: timeline | Show results with:timeline
[14]
Science-Based Scale-Up: The SBTi celebrates three milestones
Apr 2, 2024 · The SBTi's milestones are: 1000 Japanese companies with targets, 100 financial institutions, and 800 net-zero targets.Missing: timeline | Show results with:timeline
[15]
Science Based Targets Initiative: Ambitious corporate climate action
Lead the way to a zero-carbon economy, boost innovation and drive sustainable growth by setting ambitious, science-based emissions reduction targets.Target dashboard · How to set science-based targets · About · FAQs
[16]
How to set science-based targets
Science-based targets give your business a clear path to reduce its greenhouse gas (GHG) emissions in line with climate science.
[17]
Science-based targets 101: near-term and net-zero
Jul 14, 2025 · Companies setting net-zero targets through the SBTi commit to reduce emissions by at least 90% across the value chain by no later than 2050, and ...Missing: core objectives
[18]
Science-based targets miss the mark - Nature
Jul 23, 2024 · Achieving the long-term temperature goal of the Paris Agreement relies on every actor maximising their effort to reduce emissions.
[19]
Science Based Targets initiative (SBTi): An Overview and ... - Senken
Aug 19, 2024 · The Science Based Targets initiative (SBTi) is a globally recognised framework that helps companies set science-based emission reduction goals.What Is The Sbti? · Sbti Updates On Carbon... · Sbti Updates On Scope 3...<|separator|>
[20]
A race to the top - Science Based Targets Initiative
Oct 15, 2019 · ... align their targets with well-below 2°C and 1.5°C pathways, the two levels of ambition called for in the Paris Agreement. Today, we can see ...<|separator|>
[21]
The IPCC report: A final call to decarbonize for our future
Aug 10, 2021 · Recent data shows science-based targets are driving corporate decarbonization - between 2015 and 2020 companies with validated targets cut ...
[22]
The Corporate Net-Zero Standard - Science Based Targets Initiative
It includes the guidance, criteria, and recommendations companies need to set science-based net-zero targets consistent with limiting global temperature rise ...
[23]
SBTi Corporate Near-Term Criteria
This document includes all criteria that must be met for near-term target(s) to be validated by the Science Based Targets initiative (SBTi) as well as ...
[24]
Standards and guidance - Science Based Targets Initiative
The Science Based Targets initiative develops standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets.Apparel and footwear · Forests, Land and Agriculture · Oil and Gas · Buildings
[25]
[PDF] Science-Based Target Setting Manual
Science-based targets (SBTs) are GHG reduction targets aligned with limiting global temperature rise. This manual provides guidance for setting SBTs.
[26]
[PDF] Procedure for Validation of SBTi Targets
Oct 2, 2024 · To be validated, companies must create greenhouse gas inventories and apply the Science Based Targets initiative's thorough methodologies for ...
[27]
Science Based Targets initiative | WWF - Panda.org
The initiative defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and ...
[28]
SBTi to 'transform' governance as corporate demand for climate ...
Sep 13, 2023 · Another key facet of the SBTi's 'transformation' plan is incorporation. The Initiative has, to date, been a partnership-based organisation ...
[29]
Governance - Science Based Targets Initiative
The SBTi has developed a technical governance model to enhance the effectiveness, rigor, and credibility of our standards, methods and guidance.
[30]
Board of Trustees - Science Based Targets Initiative
The Science Based Targets initiative's Board of Trustees comprises global leaders in corporate climate action.
[31]
Setting the Standard: Inside SBTi's evolution into a voluntary ...
Jul 5, 2024 · When the Science Based Targets initiative (SBTi) was founded before the COP21 Paris Agreement, the goal was simple - get 100 of the world's ...Missing: subsequent | Show results with:subsequent
[32]
Technical governance - Science Based Targets Initiative
The SBTi has developed a technical governance model to enhance the effectiveness, rigor, and credibility of our standards, methods and guidance.Missing: structure | Show results with:structure
[33]
Advisory groups - Science Based Targets Initiative
Technical Advisory Group (TAG). The TAG was an advisory body composed of experts with in-depth knowledge of climate change mitigation and science-based target ...Missing: structure | Show results with:structure
[34]
Understand the Methods for Science-based Climate Action
Feb 25, 2021 · The Science Based Targets initiative's goal has always been to use robust, freely available target-setting methods that drive ambitious greenhouse gas emission ...
[35]
FAQs - Science Based Targets Initiative
Near-term targets submitted from July to December 2024 must have a target year between 2029 and 2034. When selecting target years, it's important to ...Missing: milestones | Show results with:milestones
[36]
[PDF] Documentation-of-target-setting-methods.pdf
This document is about target-setting methods for the Science Based Targets Initiative (SBTi), which helps companies set GHG reduction targets.
[37]
[PDF] SBTi Corporate Net-Zero Standard
Oct 28, 2021 · Targets at this ambition level are consistent with limiting warming to 1.5C ... physical intensity reduction methods, according to the SBTi ...
[38]
Oil and Gas - Science Based Targets Initiative
Tackling emissions from the oil and gas sector is really important - our aim is to enable oil and gas companies to set ambitious science-based targets.
[39]
Sector Guidance Summary - Science Based Targets Initiative
A summary of available and planned pathway and guidance developments for each sector. View the table below for an overview of the sector-specific standards.
[40]
SBTi Launches Draft Net Zero Standard for the Power Sector
Sep 3, 2025 · The new proposed standard was developed in alignment with the SBTi's draft Net-Zero Standard V2, while also introducing new methodologies and ...
[41]
The SBTi Unveils Framework to Accelerate Buildings Sector's ...
Aug 28, 2024 · The SBTi launches sector-specific criteria and calls for building companies and financial institutions to align with net-zero.
[42]
Financial Institutions - Science Based Targets Initiative
Jul 22, 2025 · The SBTi defines a financial institution as an entity that generates 5% or more of its revenue from investment, lending or insurance activities.
[43]
The SBTi opens net-zero standard for finance industry
Jul 22, 2025 · The Standard provides clear, actionable science-based guidance for banks, asset owners and managers, private equity firms and other financial ...
[44]
[PDF] SBTi Sector Classification Descriptions
The following sector classification is mainly based on the Business Activity Groups classification developed by the Global Reporting Initiative (GRI), ...
[45]
What's in a commitment? - Science Based Targets Initiative
Mar 1, 2024 · After an organization has officially committed to setting science-based targets, it has 24 months to develop those targets and book a slot with ...
[46]
Target Validation Services
Companies must register for an account using the SBTi Services Validation Portal, before making a commitment or submitting targets for validation.<|separator|>
[47]
Target dashboard - Science Based Targets Initiative
The SBTi's Target Dashboard lists companies and financial institutions that have set science-based targets, or have committed to developing targets.
[48]
Progress reporting in 2022 - Science Based Targets Initiative
To support accountability of science-based targets, the SBTi requires all organizations which set targets to publicly report their company-wide GHG emissions ...More Action Needed On... · Reporting Status Of... · Numbers May Not Add Up To...Missing: rules | Show results with:rules
[49]
[PDF] Overview on the Science- Based Targets initiative (SBTi) - CDP
We make it clear that non-state actors require not only long-term pledges but also short-term science- based targets as well as detailed transition plans ...
[50]
Measurement, reporting and verification (MRV)
The Science Based Targets initiative's Progress Framework will advance our work on measurement, reporting and verification (MRV) of science-based targets.Missing: rules | Show results with:rules
[51]
Forging the Next Chapter: SBTi releases new guidance for five-year ...
Jul 18, 2025 · Two new resources released to help companies meet the requirement to review their science-based targets every five years.<|separator|>
[52]
Why Scope 3 is Key to Delisted SBTi Major Suppliers
Jan 20, 2025 · The Science-Based Targets initiative (SBTi) has dropped over 200 major companies from its net zero list after they failed to meet their emissions targets.
[53]
Final campaign evaluation report published, including commitments ...
Mar 7, 2024 · 239 companies from the campaign had net-zero commitments removed on March 7, 60% of which had near-term targets set.
[54]
When their net-zero pledges expired, firms set course sans SBTi
Jul 9, 2025 · In March 2024, the Science Based Targets initiative (SBTi) revealed it had removed 239 companies, including Microsoft, Procter & Gamble, ...
[55]
The SBTi Is No Longer Fit For Purpose - Earth.Org
Apr 15, 2025 · Companies are quietly withdrawing from their SBTi commitments, raising a fundamental question: is the net-zero model still fit for purpose?
[56]
Why Scope 3 Emissions are Central to SBTi Delistings
Jan 20, 2025 · The Science-Based Targets initiative (SBTi) has removed over 200 major companies from its net zero list after they failed to meet key climate commitments.
[57]
SBTi removes 200+ companies from their net zero commitments
Mar 18, 2024 · The Science Based Targets Initiative (SBTi) has recently updated the status of 239 companies on its target dashboard as “commitment removed”.<|separator|>
[58]
Investigation finds SBTi no longer leading choice as firms explore ...
Jul 15, 2025 · Following the removal of 239 companies' net-zero commitments by the Science Based Targets initiative (SBTi) last year, an investigation by an ...
[59]
SBTi Monitoring Report 2023 - Science Based Targets Initiative
The SBTi Monitoring Report 2023 highlights key trends in companies and financial institutions setting science-based targets.Industrial sector growth in... · Stock market index growth · Disclaimer
[60]
Climate Action Milestone: 6000+ Companies Adopt Science-Based ...
Aug 30, 2024 · In fact, the number of companies with science-based targets has now surpassed 6,000, marking a major milestone for the SBTi and corporate ...
[61]
Quantitative evaluation of large corporate climate action initiatives ...
Jun 13, 2023 · Our results show that the collective Scope 1 and 2 emissions of these companies have fallen by 35.6%, with companies generally on track or ...
[62]
Does it pay to be science‐based green? The impact of science ...
Nov 10, 2022 · Fourth, from an empirical perspective, firms with SBTs have reduced their combined emissions by 29% between 2015 and 2020, representing a strong ...
[63]
What drives companies' progress on their emission reduction targets?
Aug 25, 2024 · The target progress assessment shows that 30% of targets have increased emissions since their base year, 15% have reduced their emissions but ...
[64]
The role of science-based targets on carbon mitigation
Our results suggest that SBTs are long-term investments that do not generate immediate but long-term and more sustainable outcomes.<|separator|>
[65]
Limited accountability and awareness of corporate emissions target ...
Jan 21, 2025 · A total of 26 firms (33.3%) acknowledge failing emissions targets in sustainability reports, of which 16 explicitly acknowledge the failure ...
[66]
How Effective Is Science Based Targets Initiative in Addressing ...
Mar 2, 2025 · Empirical assessments of SBTi's effectiveness are still nascent, given the relatively recent emergence of the initiative and the time lag ...
[67]
Statement from the SBTi Board of Trustees on use of environmental ...
In January 2024 the SBTi announced that work to revise its flagship Corporate Net-Zero Standard was a priority for 2024, and that this revision would include ...Missing: 2023 | Show results with:2023
[68]
Science Based Targets Initiative board undermines integrity of its ...
Apr 16, 2024 · SBTi had disallowed the use of offset contracts because they lack integrity and are susceptible to corporate greenwashing claims. Rather than ...<|separator|>
[69]
Demand for low-quality offsets by major companies undermines ...
Aug 10, 2024 · We find that companies have predominantly sourced low-quality, cheap offsets: 87% carry a high risk of not providing real and additional emissions reductions.
[70]
New CMW study and SBTi assessment highlight risks associated ...
Jul 30, 2024 · Fresh evidence published by the Science Based Targets initiative (SBTi) confirms the unsuitability of carbon offsetting to meet emissions targets.
[71]
Read the leaked protest letter from SBTi staff angry over new carbon ...
Apr 11, 2024 · Read the leaked protest letter from SBTi staff angry over new carbon offset policy. Letter claims the board “undermined” governance process ...
[72]
The multibillion dollar question - SBTi rows back on carbon credits
Jul 31, 2024 · The Science Based Targets initiative (SBTi) has warned that carbon credits have been found to be largely “ineffective” but left open the prospect for the ...
[73]
SBTi walks back carbon offset policy changes after staff backlash
Apr 16, 2024 · SBTi said it has not changed its environmental offsetting policy, despite proposing amendments to it in an April 9 statement.
[74]
New SBTi rules still too restrictive on carbon removals, say offset ...
Mar 20, 2025 · The new rules instead largely hold the line on offsets – only allowing them to be used for Scope 1 and Scope 3 residual emissions which remain ...
[75]
Why the SBTi's proposal on carbon offsets will deepen the climate ...
May 30, 2024 · ... offset emissions in key parts of their value chain (Scope 3 emissions). This announcement created a strong backlash, with some staff ...Missing: allowance | Show results with:allowance
[76]
The SBTI's Response to Bloomberg's article Inside the SBTi Scope 3 ...
May 29, 2024 · Below is the response to Bloomberg from the SBTi CEO on May 28th, 2024: “The revision of the Corporate Net-Zero Standard could be the most consequential ...
[77]
SBTi delays new corporate net-zero update again - Trellis Group
10 Feb 2025 · The Science Based Targets initiative will gather critique on corporate net-zero standard revisions via an online survey and working groups.