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Understanding SBTi Targets
Understanding SBTi Targets
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Net-zero emissions: Moving from buzz phrase to action
‘Net-zero emissions’ has become as much of a buzz phrase as a genuine climate target. With so many organisations touting this mission statement, many people are beginning to wonder just how closely this matches the reality on the ground.
Last November, COP29 conducted the first global stocktake to assess collective progress towards the goals of the Paris Agreement. The findings revealed that current efforts are not enough to prevent global warming from reaching catastrophic levels, and countries have been urged to move beyond rhetoric and focus on translating climate ambitions into measurable outcomes.
What is SBTi and why it matters
From ambition to action: the role of SBT
Net-zero commitments range from aspirational to actionable and accountable. So, while it is encouraging to see so many companies including these goals in their growth strategies, the question remains: how can we ensure they are effectively implemented to achieve the desired results?
The Science-Based Targets Initiative (SBTi) was formed as a partnership between the Carbon Disclosure Project (CDP), the United Nations Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). It establishes a rigorous framework for companies to set and achieve net-zero emissions in line with the Paris Agreement's goal of limiting global warming to 1.5°C.
What is SBTi certification?
SBTi certification accredits that a company's greenhouse gas (GHG) reduction targets meet specific scientific criteria. To achieve certification, companies must demonstrate that their targets are aligned with the latest climate science and pathways to limit warming to well below 2°C above pre-industrial levels. The certification process provides a standardised approach to setting, measuring and achieving these targets, ensuring companies' climate commitments translate into meaningful action.
To achieve SBTi certification, companies need to set clear and measurable targets covering all relevant emissions scopes: Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and, where relevant, Scope 3 (indirect emissions from the value chain). These targets are then validated by SBTi to ensure alignment with global standards.
Objectives of the SBTi commitment
SBTi aims to drive corporate action across all industries. By aligning company-specific targets with scientific recommendations, it bridges the gap between business operations and global climate goals. Its objectives include:
- Encouraging the private sector to adopt actionable and measurable climate targets.
- Ensuring that emission reduction strategies are consistent with the goals of the Paris Agreement.
- Facilitating the transition to a low-carbon economy by holding companies accountable for their climate commitments.
In other words, SBTi turns aspirational corporate climate goals into specific, science-based action plans.
Implementing and aligning SBTi
How SBTi relates to ESG
Integrating SBTi targets with environmental, social, and governance (ESG) criteria strengthens a company's sustainability efforts. Environmental responsibility is a cornerstone of ESG, and adopting SBTi demonstrates a company's commitment to measurable and effective climate action. This approach offers several benefits:
- Increased transparency: SBTi's rigorous standards ensure clear communication of climate goals and progress.
- Credibility: Validated, science-based targets give stakeholders confidence in a company's sustainability claims.
- Alignment with investor expectations: ESG-focused investors increasingly favour companies with robust climate strategies.
Incorporating SBTi into an ESG framework signals a company's commitment to balancing environmental stewardship with social and governance responsibilities.
Achieving SBTi certification
Securing SBTi certification is a structured process:
- Targets: Companies identify emission sources across their operations and value chain and set reduction targets aligned with SBTi criteria.
- Validation: Proposed targets are reviewed by SBTi experts to ensure they align with scientific standards.
- Implementation and monitoring: Companies incorporate approved targets into their strategies, track progress and adjust actions as needed.
- Reporting: Regular public disclosure of progress improves accountability and transparency.
While this is a demanding process, it provides companies with a structured, science-based roadmap for results-driven climate action, clarifies where priorities are and sets a timeline for pragmatic implementation.
Benefits and challenges of SBTi adoption
Overcoming key challenges in implementation
- Rigorous criteria: SBTi standards require extensive analysis and ambitious targets.
- Ongoing commitment: Companies must continuously monitor, report and adjust their strategies to maintain certification.
- Scope 3 complexity: Addressing emissions from the value chain can be a particularly thorny issue and requires transparent collaboration with suppliers and partners.
Despite the challenges, pursuing SBTi certification is essential for a company’s long-term viability. Companies that are slow on the uptake risk falling behind competitors, losing investors or facing regulatory penalties, while those who show their commitment will gain competitive advantages in an economy where carbon reduction determines market survival.
Unlocking long-term business value
- Enhanced reputation: SBTi certification demonstrates leadership in climate action, which appeals to customers, investors and partners.
- Regulatory alignment: Science-based targets position companies to comply with evolving climate regulations and policies.
- Operational efficiency: Reducing emissions often leads to cost savings through energy efficiency and streamlined processes.
- Long-term sustainability (if not survival): Alignment with global climate goals ensures resilience to environmental and economic risks.
Equans’ commitment to SBTi
As an international energy services and solutions provider, Equans strives to exemplify corporate climate responsibility through its commitment to SBTi. By setting science-based targets, the group aligns its operations with global climate goals, consolidating its position as a leading sustainability-focused organisation. This commitment is evident in our carbon reduction 2030 roadmap, which addresses both operational emissions and those across our value chain.
By incorporating SBTi certification into the group’s broader ESG strategy, Equans has demonstrated the value and impact of embedding science-based climate action within its own corporate sustainability framework.
Moving from net-zero rhetoric to results
The Science-Based Targets Initiative framework doesn't just separate credible pledges from empty promises, it charts the course towards genuine transformation by setting a benchmark for companies to implement credible and impactful climate action strategies.
SBTi certification is hardly an achievement in the strict sense of the word; it’s just the first step on a demanding journey. For Equans, it is a launching pad that locks in our strategic trajectory: transforming bold pledges into measurable progress, one demanding milestone at a time.
This requires sustained transformation, unwavering focus and the recognition that the future of our business is inseparable from the future of our planet.
Frequently asked questions about SBTi
Because "net-zero by 2050" has become one of the most overused (and least verified) corporate commitments of the decade. Without a common standard, every company sets its own rules. SBTi closes that gap: one rigorous framework, validated by independent experts, aligned with what the science actually requires.
A net-zero pledge can mean almost anything, there's no universal definition or verification. SBTi certification means targets have been independently validated against the Paris Agreement's 1.5°C pathway. It's the difference between a commitment and an accountable action plan.
Companies must set measurable targets across all emission scopes, submit them for expert validation, and publicly report progress. Four steps: targets, validation, implementation, and reporting.
SBTi strengthens the environmental pillar of any ESG framework by replacing vague sustainability claims with validated, science-based targets. For investors, it signals credibility, not just ambition.
SBTi positions companies ahead of tightening climate regulations and often drives cost savings through energy efficiency. Companies that delay risk losing investors, falling behind competitors, or facing regulatory penalties.
