SBTi and ESRS E1
SBTi (Science Based Targets initiative) validates company GHG reduction targets against 1.5°C-consistent science. SBTi-validated targets satisfy the science-alignment requirement of ESRS E1-4 without further justification — making SBTi the most efficient pathway to Paris-aligned CSRD disclosure.
SBTi (Science Based Targets initiative) validates company GHG reduction targets against 1. SBTi validation involves submitting your GHG reduction targets to SBTi for independent assessment against their methodologies.
How SBTi validation works
SBTi validation involves submitting your GHG reduction targets to SBTi for independent assessment against their methodologies. The process:
Step 1 — Commit: Submit a letter of commitment to SBTi. This gives you 24 months to submit targets for validation.
Step 2 — Develop targets: Set near-term (5–10 year) and long-term (net zero) targets using SBTi's target-setting tools and guidance. Targets must cover Scope 1 and 2 (mandatory) and Scope 3 where it exceeds 40% of total emissions (also mandatory for most companies).
Step 3 — Submit: Submit targets to SBTi with supporting documentation — base year emissions, target year, coverage, and alignment methodology.
Step 4 — Validation: SBTi reviews targets against their methodologies. Typical turnaround is 3–6 months. If targets meet requirements, they are approved and published on the SBTi website.
Step 5 — Disclose: Publish validated targets in your CSRD report and reference SBTi validation as the basis for 1.5°C alignment claims.
SBTi Corporate Net-Zero Standard
The SBTi Corporate Net-Zero Standard (2021) sets requirements for corporate net zero targets — going beyond near-term emission reductions to define what credible net zero means.
Net zero under SBTi requires: near-term targets (5–10 years) reducing absolute Scope 1, 2, and 3 emissions by at least 50% by 2030 (from a 2020 base); long-term targets achieving near-complete emission elimination (90–95% reduction) by 2050 at the latest; and any residual emissions neutralised by permanent removals (not offset by avoidance credits).
SBTi Net-Zero Standard v2.0 is in development — expected to strengthen Scope 3 requirements and update the definition of qualifying removals. Monitor SBTi announcements for the final version.
SBTi vs ESRS E1-4 — what SBTi covers and what it does not
SBTi validation satisfies: the science-alignment requirement (1.5°C compatibility) of ESRS E1-4; the target metric, boundary, and base year requirements; and the Scope 3 target requirements where applicable.
SBTi validation does not satisfy: transition plan disclosure (ESRS E1-1) — SBTi validates targets, not the plan for achieving them; actions and resources (ESRS E1-3) — you must separately disclose funded actions; GHG emissions metrics (ESRS E1-6) — base year and current year emissions must be separately disclosed; and XBRL tagging requirements.
SBTi is a powerful shortcut for the target-science-alignment element of ESRS E1-4. It does not replace the full ESRS E1 disclosure set.
Frequently asked questions
How long does SBTi validation take end-to-end?
From commitment to validated targets: typically 12–18 months. Target development takes 3–6 months; SBTi review takes 3–6 months. Factor this timeline into your CSRD reporting preparation — if your first CSRD report is in 2028, commit to SBTi no later than 2026.
Can we submit targets to SBTi before our base year GHG data is fully verified?
SBTi requires a complete base year GHG inventory (Scope 1, 2, and material Scope 3) to validate targets. Third-party assurance of the base year inventory is not mandatory for SBTi submission but is best practice and supports CSRD assurance.
What happens if we miss our SBTi-validated targets?
SBTi monitors target progress through annual disclosure requirements. Companies that miss targets without explanation or fail to report progress risk having their target status downgraded or removed from the SBTi website. Under CSRD, target progress must be disclosed annually — missed targets with no explanation will attract regulatory scrutiny.