Setting Auditable Science-Based Targets (SBTi): 2026 Manual

As corporate greenwashing claims face increasing regulatory penalties, the Science Based Targets initiative (SBTi) has emerged as the global benchmark for validating enterprise carbon reduction commitments.

Near-Term vs. Long-Term Net-Zero Targets

Under the SBTi Net-Zero Standard, corporations must commit to two complementary milestones:

• Near-Term Targets (5-10 Years): Require immediate absolute emission reductions across Scope 1 and 2 (minimum 4.2% annual linear reduction) and Scope 3 (if Scope 3 represents >40% of total footprint).
• Long-Term Net-Zero Targets (By 2050 at latest): Mandate reducing total value-chain emissions by 90% or more, with remaining residual emissions (<10%) neutralized via high-integrity permanent carbon removals.

Actionable Decarbonization Levers

• Electrification & PPA Procurement: Transition thermal boilers and grid electricity to solar/wind Power Purchase Agreements (PPAs).
• Supplier Engagement Programs: Mandate top 50 vendors by spend to set their own SBTi-validated targets.
• Internal Carbon Pricing (ICP): Establish shadow carbon prices ($50-$100/tCO2e) during capital expenditure (CapEx) evaluations.