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SBTi target setting

What is SBTi

The Science Based Targets initiative (SBTi) enables organisations to set greenhouse gas reduction targets aligned with the latest climate science. Independent SBTi validation demonstrates a credible commitment to decarbonisation, strengthens ESG performance, enhances stakeholder confidence, supports regulatory expectations, and positions organisations as responsible leaders in the transition to a low-carbon economy.

There is a significant difference between a company that says it is committed to reducing emissions and a company that has had that commitment independently validated against climate science. The Science Based Targets initiative (SBTi) exists to enforce that distinction.
SBTi provides a rigorous validation mechanism through which organisations set greenhouse gas reduction targets that are mathematically aligned with the decarbonisation pathways required to limit global warming.
Targets validated by SBTi are not aspirational — they are scientifically calibrated, independently reviewed, and publicly committed. That distinction matters enormously to the investors, customers, and regulators who assess corporate climate credibility.
For manufacturing and service sector organisations, achieving an SBTi-validated target signals something deeper than environmental ambition.
It signals that the organisation has done the analytical work, accepted the accountability, and embedded climate action into its long-term business strategy.
In an era where greenwashing accusations can materially damage a brand, SBTi validation is one of the clearest available defences.

Key Requirements of SBTi target setting

SBTi validation requires organisations to establish a credible greenhouse gas inventory, develop science-based emissions reduction targets, address material Scope 3 emissions, and publicly report progress. These structured requirements ensure climate commitments are measurable, transparent, and aligned with globally accepted decarbonisation pathways.

A verified greenhouse gas inventory covering Scope 1 and Scope 2 emissions as the foundation for target-setting, with Scope 3 assessed
A formal commitment letter submitted to SBTi signalling intent to develop and submit validated targets
Near-term targets developed using SBTi-approved methodologies — including the Absolute Contraction Approach or Sectoral Decarbonisation Approach
Long-term net-zero targets aligned with SBTi's Corporate Net-Zero Standard, extending the commitment beyond short-term reductions to full value chain decarbonisation
Scope 3 targets covering upstream and downstream emissions categories material to the organisation's footprint
Annual public disclosure of progress against approved targets, maintaining accountability to stakeholders and the SBTi registry
Target revision or re-submission processes triggered by material changes in business scope, acquisitions, or emissions profile

Advantages to company doing SBTi Target setting

SBTi validation strengthens business resilience by providing a science-based roadmap for decarbonisation. It enhances investor and customer confidence, supports sustainable financing, improves supply chain competitiveness, reduces climate-related risks, and demonstrates credible, independently validated climate leadership.

A structured decarbonisation roadmap that directs capital investment, innovation priorities, and supplier engagement with scientific clarity
Reduced exposure to transition risks — including carbon pricing, regulatory tightening, and stranded asset risk — through proactive alignment with low-carbon pathways
Accelerated access to sustainability-linked financing, green bonds, and ESG-aligned investment vehicles
Competitive advantage in supply chains where large corporate buyers require their suppliers to demonstrate science-aligned climate commitments
A compelling employer value proposition for professionals who evaluate potential employers on the basis of genuine climate action
Elimination of greenwashing exposure by replacing self-reported ambitions with third-party validated commitments
A foundation for integrated climate strategy connecting emissions targets with procurement, product development, and capital planning

Role of Blue Sky in SBTi target setting consulting

Blue Sky provides end-to-end SBTi consulting, supporting GHG baseline development, target setting, submission preparation, validation support, and decarbonisation planning for successful SBTi target approval.

Guide on completing GHG baseline — ensuring the inventory is accurate, boundary-appropriate, and built on data that will survive third-party scrutiny. We then guide to identify the most appropriate target-setting methodology for your sector and emissions profile, develop the near-term and long-term targets, and prepare the submission package in the format SBTi requires.
Beyond validation, we guide to develop internal decarbonisation roadmaps that translate approved targets into practical actions — from procurement policy changes to capital investment prioritisation — so that the SBTi commitment becomes a live business programme
We support end to end in SBTi target setting projects including gap assessment against SBTi criteria, training about gaps fulfilment, follow up & facilitation till SBTi targets are successfully submitted & validated on SBTi portal.

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