Tackling climate change and achieving sustainability within your business can feel overwhelming—but there’s a clear, science-backed way to make a meaningful impact. Science-based targets (SBTs) offer businesses an actionable roadmap for climate action.
In a recent webinar, Greenplaces’ sustainability leaders, Corinne Hanson (VP of Sustainability) and Andrew Rizkallah (Director of Sustainability Reporting), spoke with Alexa Zanolli, Associate General Counsel for ESG and AI Governance at AMN Healthcare, who shared valuable insights and practical guidance on setting ambitious yet achievable targets.
In this blog, we break down what SBTs are, why they’re essential, and how your company can effectively establish and achieve them.
Science-based targets and why they matter
SBTs are specific goals set by companies to cut their greenhouse gas (GHG) emissions. They’re designed to help keep the planet’s temperature from rising more than 2°C above pre-industrial levels, with a stronger push to keep it under 1.5°C, as outlined by the Paris Agreement. Before a company sets a goal, it’s important that they first measure their carbon footprint.
Check out this handy guide on the three types of emissions typically accounted for.
Beyond doing their part to save the planet, companies that commit to SBTs also enjoy numerous business advantages, including:
- Increased investor confidence and access to capital
- Strengthening brand reputation and customer loyalty
- Potential cost savings through increased efficiency
- Driving innovation and operational efficiency
- Gaining a competitive edge in the market
- Improved risk management
As Alexa Zanolli emphasized in our webinar:
What is the Science-Based Targets initiative (SBTi)?
The Science-Based Targets initiative (SBTi) is a corporate climate action organization enabling companies and financial institutions to combat the climate crisis. The SBTi is incorporated as a charity, with a subsidiary that hosts target validation services.
Founded in 2014 and significantly expanded in 2023, the Science-Based Targets initiative (SBTi) offers tailored guidance for key sectors such as finance, steel, and FLAG (forest, land, and agriculture). The initiative launched the Corporate Net-Zero Standard in 2021, ensuring company net-zero targets align with achieving global net-zero by 2050. The SBTi’s ambitious goals for 2025 include:
- Covering $20 trillion of the global economy with approved 1.5°C targets.
- Engaging 10,000 companies committed to or setting science-based targets.
- Addressing 5GT of corporate emissions with SBTs.
Originally established by CDP, the UN Global Impact (UNGC), We Mean Business Coalition, World Resources Institute (WRI), and the World Wildlife Fund (WWF), the SBTi now self-funds through corporate foundation donations and validation fees. As of 2025, nearly 11,000 businesses have committed to SBTs, with over 7,000 targets validated, indicating significant global momentum.
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businesses with science-based targets and commitments
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businesses with science-based targets
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businesses with validated net-zero targets
In 2023, 53% of companies with science-based target commitments were located in Europe, followed by Asia with 27% representation, and North America with 14% representation. For companies with regulatory pressures, supply chain scrutiny, or investor expectations, this is rapidly becoming table stakes.
We’ve also noted a noticeable a sizeable recent uptick from SBT commitments from the manufacturing and services industries:
Science-based targets: The framework
To help maintain the integrity and effectiveness of targets across different industries, the SBTi requires companies adhere to guidelines, including:
- Align with the latest climate science
- Annual progress reporting required
- Commitments must span 5- to 15-years
- Targets reviewed & re-validated every 5 years
- Mandatory coverage of Scope 1 and 2 emissions
- Scope 3 included if 40% or more of total emissions
- Offsets cannot count towards emission reductions
These guidelines ensure that SBTs are credible, ambitious, and aligned with the latest climate science, providing a standardized approach for companies across different sectors.
Leveling the net-zero playing field
In 2021, the SBTi introduced a new standard to address inconsistencies in net-zero targets and anchor them in climate science. Pledges must now commit to making:
- Deep cuts across value chains (Scopes 1, 2, and 3)
- Near- and long-term targets aiming to halve emissions by 2030 and reach near-zero by 2050 and investments in climate mitigation beyond the value chain
Charting your course to science-based targets
Here’s a quick rundown of the steps to set your own science-based targets:
Carbon reduction strategies
What do common reduction strategies in line with SBTi’s guidance typically look like?
For Scope 1 and 2—where most companies start—we often see actions like fleet and boiler electrification, energy efficiency upgrades, renewable energy certificates or PPAs, and onsite solar. Green leases and LEED-certified buildings can also support progress here.
For Scope 3, it gets more complex—and more collaborative. Companies are updating travel policies, engaging suppliers, optimizing data centers, and implementing flexible work models or waste diversion programs. There’s no one-size-fits-all plan—that’s why modeling and internal alignment are so important.
New guidance coming in 2027
Looking ahead, there are significant changes coming in 2027 with the release of
SBTi’s Net Zero Standard Version 2.0. It’s still under consultation, but here’s what we know:
- New categorization based on company size and location:
- Category A: Large and medium-sized companies in high-income countries (stricter requirements).
- Category B: Small and medium-sized companies in lower-income countries (less strict requirements).
- Mandatory public commitment to Net Zero by 2050:
- Category A: Commitment required within 12 months, public climate transition plan reporting, and third-party assurance.
- Category B: Commitment required within 24 months, with fewer requirements.
- Public reporting of climate transition plans.
- Third-party assurance required for Category A companies.
- New validation cycle: Companies must assess progress at the end of their target timeframe and set new targets based on prior performance.
- Base year restrictions: No more than 3 years prior to validation (previously allowed any year back to 2015).
- Near-term targets standardized to 5-year milestones:
- Category A: Required for all scopes.
- Category B: Required for Scopes 1 and 2 only.
- Long-term targets required:
- Category A: Across Scopes 1 and 2.
- Category B: Optional.
- Separate targets for Scope 1 and Scope 2:
- Category A: Mandatory across Scopes 1 and 2.
- Category B: Optional.
- Separate Scope 2 location-based and market-based targets proposed.
- Category A: Mandatory.
- Category B: Optional.
- Scope 3 emission requirements based on relevance, replacing the previous 67% threshold:
- Companies must act on categories representing more than 5% of total emissions.
- Prioritize action on the most material emissions sources.
How Greenplaces supports your SBTs
At Greenplaces, we offer hands-on, white-glove support throughout the entire SBTi process. That includes registering your company, drafting the commitment letter, reviewing your footprint, modeling targets, and submitting through the SBTi portal. We also build reduction roadmaps—forecasting your future emissions and helping you select the decarbonization initiatives that will get you there.
As your all-in-one sustainability platform, Greenplaces centralizes your SBTi efforts.
Now you know your SBTs…
Science-based targets are vital for meaningful corporate climate action, delivering sustainability, innovation, and resilience. The journey to net-zero begins with one decisive step. Watch the full webinar recording to hear more from Alexa Zanolli and sustainability experts.
For personalized support setting your science-based targets, request a demo or connect with our Greenplaces experts today.
