DATE
18.11.2025
AUTHORS
Dr. Florian Niedermeier
TOPICS
Climate management
Ratings & certifications
Best Practices
SHARE
How Companies Can Effectively Implement Science-Based Climate Goals
The Science Based Targets initiative (SBTi) is the international framework for science-based climate targets set by companies. It defines how emissions reductions are compatible with the 1.5-degree target—and sets clear requirements for scope coverage, reduction pathways, and governance. This article explains how SBTi works, what requirements apply, where companies typically fall short —and what successful implementation looks like in practice.
In a world where climate change and environmental awareness are increasingly in the spotlight, it is becoming essential for companies to define clear sustainability goals and actively work toward achieving them. The SBTi Net Zero Standard offers a comprehensive framework that helps companies strategically formulate and achieve their climate neutrality goals. This guide is not just a document, but a valuable tool for minimizing your own carbon footprint and making a positive impact on the environment. Discover how you can use the SBTi Standard to make your corporate goals more sustainable, thereby not only contributing to climate protection but also strengthening your competitiveness. Dive into the topic and learn how you can proactively and effectively respond to the challenges of climate change.
What is the Science Based Targets Initiative (SBTi)?
The Science Based Targets Initiative is a global partnership of environmental and research organizations that helps companies set emissions reduction targets in line with climate science. SBTi targets are based on the findings of the IPCC and translate the Paris Agreement into actionable steps for business.
Central to this is the principle that climate targets should not be defined politically or arbitrarily, but rather be scientifically grounded, quantifiable, and verifiable. Companies whose targets are validated by the SBTi thereby demonstrate that their decarbonization strategy is compatible with limiting global warming.
Why the SBTi Is Strategically Important for Companies
The SBTi is no longer merely a sustainability label. For many companies, it has become a strategic benchmark —with direct implications for market positioning, financing, and risk management.
Investors, banks, and rating agencies are increasingly using SBTi targets as a measure of the quality of climate strategies. At the same time, major clients and public sector buyers are demanding credible evidence that emissions targets are not merely stated but are also methodologically sound. As a result, companies without SBTi-compliant targets face structural pressure—regardless of their actual ambitions.
How ambitious are SBTi targets?
Classification into 1.5 °C, well below 2 °C, and 2 °C
A key feature of the SBTi is the temperature-based classification of emissions targets. It highlights the extent to which corporate targets are actually aligned with global climate goals.
Implication: The market is clearly moving toward the 1.5-degree target. Companies with less ambitious goals risk losing credibility in relative terms.
The key requirements of the SBTi Net-Zero Standard
The SBTi Net-Zero Standard provides the first binding definition of what “net zero” actually means for companies. Key elements include:
- Comprehensive scope coverage:
- Scope 1 and 2 are mandatory; Scope 3 must be included if it accounts for more than 40% of total emissions (which is almost always the case in practice).
- Clear timeframes:
- Short- and medium-term goals (5–10 years) as well as long-term net-zero goals by 2050 at the latest.
- Absolute reductions:
- The focus is clearly on actual emissions reductions, not on intensity metrics alone.
- Neutralization only at the end:
- Offsets may only be used for residual emissions, not as a substitute for reductions.
The SBTi Process in Practice: From Commitment to Disclosure
The implementation of SBTi targets follows a clear, multi-step process. Successful companies view this process not as a one-time task, but as a continuous management cycle.
Common challenges in implementing SBTi targets
In practice, SBTi initiatives rarely fail due to a lack of ambition, but rather because of operational and organizational bottlenecks. The most common ones are:
- inadequate Scope 3 data quality,
- lack of coordination with investment and procurement decisions,
- Unclear governance between sustainability, finance, and business units.
These challenges cannot be solved by additional reports, but only through structural integration.
What Successful Companies Do Differently (Best Practices)
Companies with robust SBTi targets take a systematic approach. They do not treat their targets in isolation, but rather integrate them into:
- strategic planning,
- the investment evaluation,
- supplier management,
- and internal performance management.
The key here is the ability to translate climate goals into operational decision-making logic —and to adjust them regularly as conditions change.
SBTi in conjunction with CSRD, ESRS, and transition plans
The SBTi does not conflict with European reporting requirements—on the contrary. When implemented correctly, it provides a substantive foundation for:
- ESRS E1 (Climate Change),
- Transition Plans under the CSRD,
- climate-related risk and scenario analyses.
Companies that integrate their SBTi targets into their data and governance architecture early on reduce complexity, compliance costs, and audit risks in the long term.
The bottom line
The Science Based Targets Initiative is not a reporting standard, but a strategic management tool. Companies that consistently implement the SBTi not only build credibility but also foster long-term resilience in an increasingly climate-regulated environment.
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