The Science Based Targets initiative (SBTi) was established to guide companies in setting emission reduction targets aligned with climate science and the goals of the Paris Agreement. Its purpose is to drive ambitious climate action in the private sector, helping businesses reduce their greenhouse gas (GHG) emissions and build a resilient, zero-emissions economy grounded in science.

SBTi offers guidance for companies across various industries, helping them to determine how much and how quickly they need to reduce their GHG emissions. This initiative includes the development of sector-specific methodologies and frameworks, providing tailored guidance for industries such as aviation, apparel and footwear, financial institutions, and information and communication technology.

SBTi defines and promotes best practices in emissions reductions and net-zero targets in line with climate science. It provides target-setting methods and guidance to companies, enabling them to set science-based targets in accordance with the latest climate science. The initiative includes a team of experts who provide companies with independent assessment and validation of their targets.

Companies that adopt science-based targets can experience benefits such as increased profitability, improved investor confidence, innovation, reduced regulatory uncertainty, and enhanced brand reputation. Over 4,000 companies worldwide have set emissions reduction targets through SBTi, leading the transition to a net-zero economy.

Companies are required to set targets covering company-wide scope 1 and scope 2 emissions. A scope 3 target is necessary if these emissions constitute 40% or more of the company's total emissions. The targets must span a minimum of 5 years and a maximum of 15 years. SBTi advocates for the adoption of transition plans covering all scopes of emissions, setting short-term milestones, ensuring effective board-level governance, and linking executive compensation to the company's adopted milestones.