SBTi 2026: Complete Guide to the Science Based Targets Initiative for Businesses

The Science Based Targets initiative (SBTi) appears in the annual reports of thousands of global companies : yet between the initial commitment and official validation, most sustainability teams discover a more demanding process than expected: 6 to 18 months of validation, strict technical criteria across Scopes 1, 2 and 3, and regular methodological updates that can invalidate targets already submitted.

This guide covers the complete SBTi process: detailed validation steps, the difference between near-term and net-zero 2050 targets, the dedicated SME program, the FLAG sector, 2025-2026 updates, real costs and timelines, and the link with CSRD. All data and requirements are drawn directly from official SBTi resources.

Table of contents

  • What is the SBTi?
  • SBTi Validation Process: The 5 Steps in Detail
  • Near-term vs. Long-term Targets (Net-zero 2050)
  • 1.5°C vs. Well-below 2°C Pathways: Technical Criteria
  • SBTi for SMEs
  • FLAG: Forests, Land and Agriculture Sector
  • 2025-2026 Updates: Corporate Net-Zero Standard v2
  • French Companies Committed to SBTi
  • Real Costs and Timelines
  • SBTi and CSRD: The ESRS E1 Connection
  • FAQ : Frequently Asked Questions About SBTi
  • Conclusion

What is the SBTi?

The Science Based Targets initiative (SBTi) is a partnership between four organizations: the Carbon Disclosure Project (CDP), the United Nations Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). Founded in 2015, this partnership defines standards and validates greenhouse gas (GHG) reduction targets aligned with IPCC climate science.

The SBTi operates through two distinct entities. The main body develops standards, tools and sector-specific methodologies. SBTi Services Limited conducts independent assessment and formal validation of targets submitted by companies.

By the end of 2023, 4,205 companies and financial institutions had SBTi-validated targets, representing a 102% increase compared to 2022. More than 7,000 additional companies had signed a commitment at that date.

Why Companies Commit to the SBTi

An SBTi commitment produces four measurable outcomes for a business:

  • External credibility: SBTi validation is the reference recognized by investors, ESG rating agencies and B2B buyers to distinguish scientifically grounded targets from marketing pledges.
  • Internal steering: the process requires precise calculation of Scope 1, 2 and 3 emissions, creating a reliable carbon data foundation for investment decisions.
  • Regulatory anticipation: the CSRD (Corporate Sustainability Reporting Directive) requires transition plans based on verifiable targets : SBTi targets directly satisfy this requirement (see CSRD section).
  • Market access: many large corporations now require their suppliers to hold SBTi targets or equivalent as part of their Scope 3 strategy.

SBTi Validation Process: The 5 Steps in Detail

The official SBTi process consists of five sequential steps. Each has precise requirements and deadlines.

Step 1 : Commit

The company submits a commitment letter through the SBTi website. This commitment is public and registered in the SBTi database. It triggers a 24-month window to submit formal targets.

At this stage, the company pays a commit fee (see costs section). Failure to meet the 24-month deadline results in removal of the commitment from the public database.

Step 2 : Develop

The company has 24 months to develop its targets. The SBTi provides calculation tools (SBTi-tool) and sector-specific methodologies to guide this work.

Targets must cover:

  • Scope 1 and 2: mandatory, covering all GHGs under the GHG Protocol
  • Scope 3: mandatory if Scope 3 emissions represent more than 40% of the company's total emissions

Six months before the 24-month deadline, the SBTi sends an automatic reminder. If the company has already developed a target internally before committing, it can proceed directly to step 3.

Step 3 : Submit

The company submits its targets via the Target Check Form. The SBTi technical team assesses target compliance against strict criteria:

  • GHG coverage: all gases covered by the GHG Protocol for Scope 1 and 2
  • Pathway: aligned with 1.5°C or well-below 2°C depending on the applicable standard
  • Target timeframe: between 5 and 15 years from the submission date (near-term); 2050 for the long-term target
  • Scope 3 coverage: if > 40% of total emissions, a Scope 3 target is mandatory

The SBTi team's validation timeline is typically 6 to 12 months after submission, with possible back-and-forth if corrections are needed.

Step 4 : Communicate

Once the target is validated, the SBTi formally publishes the commitment in its public database. The company can then communicate its commitment to stakeholders, use authorized SBTi logos and references, and cite its validation in CDP questionnaire responses and sustainability publications.

Step 5 : Disclose

Each year, the company publishes its actual GHG emissions and the progress measured against validated targets. This disclosure is typically done via the CDP questionnaire or sustainability report. Consistent lack of progress can lead to removal of SBTi status.

Near-term vs. Long-term Targets (Net-zero 2050)

The SBTi distinguishes two complementary and non-substitutable target timeframes.

Near-term Targets

Near-term targets cover a horizon of 5 to 10 years from the submission date. They address concrete reductions in Scope 1, 2 and 3 emissions. These targets are the minimum baseline required to appear in the SBTi database.

Example: a company submitting in 2026 commits to reducing its Scope 1 and 2 emissions by 50% by 2030, and its Scope 3 emissions by 30% by 2030 (2020 baseline).

Long-term Targets (Net-zero 2050)

Long-term targets fall under the SBTi's Corporate Net-Zero Standard. They aim for carbon neutrality by 2050 at the latest, with two cumulative conditions:

  • Absolute emissions reduction of at least 90% relative to the base year
  • Neutralization of residual emissions (the remaining maximum 10%) through permanent and verifiable carbon removal solutions

Standard carbon offsetting (purchasing offset credits) is not accepted as a means to meet near-term targets. It may be used as a supplement for residual emissions under the net-zero framework, provided the projects meet SBTi criteria.

1.5°C vs. Well-below 2°C Pathways: Technical Criteria

1.5°C Pathway

The 1.5°C pathway represents the highest ambition defined by the Paris Agreement. For Scope 1 and 2 targets, it generally requires an absolute reduction consistent with IPCC-compatible climate model pathways for a 1.5°C scenario (with little or no overshoot).

The SBTi requires large companies' Scope 1 and 2 targets to align with this pathway. Accepted methods include the Absolute Contraction Approach (ACA), which applies a uniform annual reduction rate across all companies.

Well-below 2°C Pathway

Certain sectors with significant technical constraints (steel, cement, chemicals) may, under specific conditions, apply the well-below 2°C pathway for hard-to-abate process emissions. This pathway allows a slower short-term reduction pace but requires equivalent long-term ambition by 2050.

For Scope 3 targets, the pathway is determined based on available methods and sector data. The SBTi accepts several approaches: the Economic Intensity Approach, Physical Intensity Approach and Absolute Contraction Approach.

SBTi for SMEs

Recognizing that SMEs account for a significant share of global emissions through large companies' value chains, the SBTi has developed a simplified program.

Differences Compared to the Large Company Standard Process

Criterion | Large companies | SMEs (SBTi for SMEs)

Submission process | Full Target Check Form | Simplified form

Scope 3 coverage | Mandatory if > 40% | Not mandatory

Commit fee | Based on revenue (see costs) | Reduced or waived

Validation timeline | 6-12 months | Generally shorter

Online resources | Full standards | SME-specific guides

SBTi's Definition of an SME

The SBTi applies the European definition of an SME: fewer than 500 employees and less than €100 million in annual revenue (threshold sometimes adjusted by region). Companies whose parent company exceeds these thresholds are assessed at the group level.

Why SMEs Commit to the SBTi

Large corporations increasingly embed SBTi requirements in their supplier contracts. An SME with a validated SBTi target improves its position in tenders and reduces the risk of being excluded from the value chains of large groups subject to CSRD.

FLAG: Forests, Land and Agriculture Sector

In 2022, the SBTi developed a specific standard for companies whose activities significantly involve forests, land and agriculture: the FLAG (Forest, Land and Agriculture) Science Based Target-Setting Guidance.

Companies Covered by FLAG

The FLAG standard applies to companies whose FLAG emissions (from land use, livestock, crops, forestry and land-use change) represent more than 20% of their total emissions. This includes:

  • Food and beverage (producers, processors, distributors)
  • Paper and forest packaging
  • Bioenergy
  • Leather and natural textiles

Specifics of FLAG Targets

Companies concerned must integrate a distinct FLAG component into their SBTi targets, with two elements:

  • FLAG emissions reduction: targets for reducing emissions from agricultural and forestry activities
  • Carbon removal targets: the SBTi allows FLAG companies to integrate natural sinks (reforestation, soil restoration) into their pathway, under strict conditions of permanence and additionality

2025-2026 Updates: Corporate Net-Zero Standard v2

The SBTi has been working since 2024 on the revision of its Corporate Net-Zero Standard, with version 2 expected in 2025-2026. This revision is significant for companies already committed.

Key Expected Changes in Version 2

Carbon credit rules: version 2 is expected to clarify and more strictly govern the role of carbon credits, particularly for residual emissions under long-term net-zero targets. In 2024, the SBTi published a position statement clarifying that offset credits cannot be used to claim Scope 3 reductions.

Biogas and bioenergy coverage: accounting rules for bioenergy emissions are being revised to align SBTi methods with IPCC approaches.

Scope 3 strengthening: additional requirements on Scope 3 data quality and calculation methodologies are expected, with a transition period for already-validated companies.

Extended FLAG integration: sectors not traditionally agricultural but with significant land footprints (commercial real estate, construction) will be better addressed.

For companies whose targets were validated under version 1 of the standard, the SBTi generally provides a transition period of 2 to 3 years before new requirements become mandatory.

French Companies Committed to SBTi

Several major French groups are among the pioneers of the SBTi approach in Europe.

Danone was one of the first companies globally to have its targets validated by the SBTi, with targets covering Scopes 1, 2 and 3 across its agricultural supply chain. The group has integrated SBTi at the core of its "One Planet. One Health" strategy.

Schneider Electric has obtained validation of its near-term SBTi targets and committed to a long-term 2050 net-zero target. The company publishes an annual carbon progress report aligned with SBTi and CDP requirements.

L'Oréal has validated Scope 1 and 2 targets aligned with 1.5°C and has integrated Scope 3 supply chain emissions into a global carbon strategy called "L'Oréal for the Future".

BNP Paribas, Crédit Agricole and Société Générale are among French financial institutions that have submitted or validated SBTi targets, via the dedicated financial sector program that integrates financed emissions (Scope 3 Category 15).

Michelin, Air Liquide and Saint-Gobain are also engaged in the SBTi process, with targets covering their industrial processes.

Real Costs and Timelines

Submission Fees (Commit Fee)

The SBTi charges submission fees based on company revenue. These fees are revised periodically.

Annual revenue | Indicative fee

Less than €5M | Waived or symbolic

€5M : €100M (SME) | Reduced rate

€100M : €1Bn | Between $9,500 and $14,500

More than €1Bn | Between $14,500 and $25,000

These figures are indicative and should be verified on the official SBTi website before any submission, as they are subject to revision.

Indirect Costs

SBTi submission fees are rarely the dominant cost item. The real costs of an SBTi commitment include:

  • Scope 3 carbon accounting: often the most costly element, particularly for companies with international supply chains. Supplier data collection can require several months of work.
  • Pathway modeling: using SBTi tools and potentially engaging a specialist consultant represents a significant investment.
  • Annual monitoring system: annual disclosure requires a durable carbon data collection and consolidation system.

Real Timelines

  • Commitment to submission: 12 to 24 months depending on the maturity of the existing carbon footprint
  • SBTi validation after submission: 6 to 12 months on average (official announced timeline: 6 months, but often extended depending on request volume)
  • Total commitment to validation: typically 12 to 24 months for prepared companies, up to 36 months for companies starting their carbon measurement from scratch

SBTi and CSRD: The ESRS E1 Connection

The CSRD (Corporate Sustainability Reporting Directive), applicable in France from fiscal year 2024 for large companies, imposes climate reporting requirements through ESRS E1 (Climate Change). The connection with SBTi is direct and structural.

What ESRS E1 Requires

ESRS E1 requires companies subject to CSRD to:

  • Describe their climate transition plan
  • Set quantified GHG reduction targets with precise timeframes (2030 and 2050)
  • Justify the alignment of their targets with Paris Agreement-compatible scenarios
  • Publish Scope 1, 2 and category-by-category Scope 3 emissions

SBTi as CSRD Reference

A validated SBTi target directly meets ESRS E1 requirements on several points:

  • Alignment with 1.5°C scenarios is documented and verifiable by third parties
  • Coverage of Scopes 1, 2 and 3 is explicitly defined
  • Near-term (2030) and long-term (2050) timeframes align with CSRD milestones

Companies subject to CSRD that do not yet have SBTi targets may still reference their own reduction targets, provided they describe the methodology used and its alignment with scientific scenarios. SBTi remains the reference most recognized by auditors and rating agencies.

Practical Advantages for CSRD Reporting

Having validated SBTi targets simplifies CSRD reporting work in several ways:

  • The SBTi validation dossier provides technical documentation directly usable in the sustainability report
  • The SBTi's methodological rigor reduces the risk of challenge by statutory auditors
  • Annual SBTi tracking data feeds directly into the required ESRS E1 KPIs

Kabaun integrates SBTi obligation tracking in its REG-005 module and generates CSRD/ESRS E1-aligned reports from your carbon accounting data.

FAQ : Frequently Asked Questions About SBTi

What is the difference between an SBTi near-term target and an SBTi net-zero target?

A near-term target covers 5 to 10 years and aims for concrete reductions in Scope 1, 2 and (where applicable) Scope 3 emissions. An SBTi net-zero target falls under the Corporate Net-Zero Standard and aims for a reduction of at least 90% of emissions by 2050, with neutralization of the remaining 10% through permanent carbon removal solutions. Both targets are complementary: a near-term target alone is not sufficient to claim "SBTi net-zero" status.

Can an SME commit to the SBTi?

Yes. The SBTi has a specific SME (Small and Medium Enterprise) program with a simplified process, reduced fees and relaxed Scope 3 requirements. The program is accessible to companies with fewer than 500 employees and less than €100M in revenue. SME resources and the submission form are available on the official SBTi website.

How long does it take to get SBTi validation?

From initial commitment to official validation, the average timeline is 12 to 24 months for a company whose carbon footprint is already calculated. If Scope 3 accounting needs to be built from scratch, the timeline can reach 36 months. Validation by the SBTi team after submission typically takes 6 to 12 months.

Does purchasing carbon offset credits allow a company to meet its SBTi targets?

No. The SBTi requires real GHG emission reductions for near-term targets. Purchasing offset credits cannot be counted as emission reductions. Carbon credits may be used as a supplement to neutralize irreducible residual emissions under a long-term net-zero target, under strict conditions defined by the Corporate Net-Zero Standard.

Does my company need to include Scope 3 emissions in its SBTi targets?

Scope 3 is mandatory if your Scope 3 emissions represent more than 40% of your total emissions (Scope 1 + 2 + 3). For most companies, particularly in distribution, textiles and food, this threshold is exceeded. Under the SME program, the Scope 3 obligation is relaxed.

What is the relationship between SBTi and CSRD?

The CSRD requires covered companies to publish a climate transition plan with quantified targets aligned with the Paris Agreement. A validated SBTi target directly meets this requirement as it is auditable, covers Scopes 1 to 3, and is aligned with scientific 1.5°C pathways. SBTi is the most widely recognized reference by CSRD auditors and ESG rating agencies.

What happens if a company fails to meet its SBTi targets?

The SBTi monitors annual progress through company-published data. In case of persistent lack of progress or voluntary withdrawal, the company may have its "Committed" or "Targets Set" status removed from the public database. This generates reputational exposure and can affect ESG ratings. The SBTi regularly publishes reports on companies that have not honored their commitments.

What is the FLAG program and which companies does it concern?

FLAG (Forest, Land and Agriculture) is an SBTi-specific standard for companies where more than 20% of total emissions come from land, agriculture and forestry. It primarily applies to food and beverage, paper-board and some fashion sectors. These companies must integrate a separate FLAG component into their SBTi targets, covering both agricultural emissions reduction and carbon removal targets through natural sinks.

Conclusion

SBTi is no longer optional for companies serious about their climate strategy. With 35,000+ companies committed globally, CSRD requirements converging with SBTi standards, and value chains imposing the approach on suppliers, the question is no longer "should we commit?" but "how do we prepare effectively?"

Three priority actions to get started: calculate a complete and precise Scope 1, 2 and 3 carbon footprint, identify realistic reduction levers toward 2030, then submit the SBTi commitment with documented targets.

Kabaun automates the collection, calculation and monitoring of your carbon footprint : with the integrated SBTi and CSRD compliance module. Discover how at [kabaun.com](https://www.kabaun.com).

*Updated 29 April 2026*

Additional Resources

  • [Official SBTi website : resources and submission tools](https://sciencebasedtargets.org)
  • [SBTi Corporate Net-Zero Standard](https://sciencebasedtargets.org/net-zero)
  • [SBTi for SMEs program](https://sciencebasedtargets.org/smesportal)
  • [FLAG FAQ : SBTi](https://sciencebasedtargets.org/sectors/flag)
  • [ESRS E1 : EFRAG](https://www.efrag.org)