Science Based Targets
Science Based Targets are corporate emission reduction goals aligned with the 1.5-degree pathway of the Paris Agreement and validated against a consistent methodology by the Science Based Targets initiative (SBTi).
Science Based Targets (SBT) are corporate climate goals whose level of ambition is derived from climate science rather than from internal expectations alone. The benchmark is the objective enshrined in the 2015 Paris Agreement to limit global warming to well below 2 degrees Celsius and ideally to 1.5 degrees above pre-industrial levels. The Science Based Targets initiative (SBTi) – a partnership of CDP, the UN Global Compact, the World Resources Institute (WRI) and WWF – provides the methodology, reviews submitted targets and validates their consistency with the remaining global carbon budget.
Methodologically, a distinction is drawn between near-term targets (typically covering 5 to 10 years) and long-term targets aimed at reaching net zero by 2050 at the latest under the Net-Zero Standard. Accounting follows the Greenhouse Gas (GHG) Protocol and covers Scope 1, Scope 2 and – where material – Scope 3 emissions across the value chain. Depending on the sector, different methods are applied to derive the targets, in particular the absolute contraction approach and sector-specific decarbonisation pathways (Sectoral Decarbonization Approach). Carbon offsetting is no substitute for reduction; residual emissions may only be neutralised through permanent removals once the net-zero state is reached.
In EU regulatory practice, science based targets are gaining additional weight: under the Corporate Sustainability Reporting Directive (CSRD) and the ESRS E1 standard, in-scope companies must disclose their greenhouse gas reduction targets and state whether these are compatible with limiting warming to 1.5 degrees. While SBTi validation is not a legal requirement, it serves as a recognised proof of scientific grounding and guards against accusations of greenwashing. SBT thus form the quantitative core of a credible transition plan, connecting voluntary climate governance with the binding disclosure obligations of the CSRD.
Legal Basis
ESRS E1 (Climate change) in conjunction with the CSRD (Directive (EU) 2022/2464); GHG Protocol; Paris Agreement (2015); SBTi Corporate Net-Zero Standard
Practical Example
A mid-sized machinery manufacturer that becomes subject to CSRD reporting for the first time has its sustainability officer compile a greenhouse gas inventory under the GHG Protocol and finds that more than 80 percent of emissions sit in Scope 3 (purchased materials and the use phase of its products). On this basis the company sets a near-term target of minus 42 percent in absolute Scope 1 and Scope 2 emissions by 2030 plus a Scope 3 reduction target, and submits both to the SBTi for validation. It carries the validated targets unchanged into the ESRS E1 disclosures of its sustainability statement and anchors them in the transition plan, so that auditors can trace the methodology and data basis during the limited assurance engagement.