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SBTi: Science-Based Targets for Net Zero and Carbon Reduction

As businesses worldwide commit to sustainability and carbon neutrality, the Science-Based Targets Initiative (SBTi) has emerged as the leading global framework for setting credible emissions reduction targets. SBTi provides a structured, science-driven approach for companies to align their decarbonization strategies with the latest climate science and the goals of the Paris Agreement.

At Clenergize, we support organizations in developing, validating, and implementing science-based targets (SBTs) to achieve Net Zero and Carbon Neutrality. Our expertise ensures businesses meet SBTi compliance, enhance investor confidence, and accelerate their transition to a low-carbon future.

Why SBTi Matters for Businesses

SBTi-approved targets offer organizations a credible and measurable pathway toward decarbonization. By setting science-based targets, businesses:

  • Align with the 1.5°C global warming goal outlined in the Paris Agreement
  • Demonstrate sustainability leadership to investors, regulators, and stakeholders
  • Gain a competitive advantage by preparing for carbon regulations and policy shifts
  • Improve access to green financing and ESG-focused investment funds
  • Strengthen corporate climate disclosures and CDP scores

With over 5,000 companies globally committing to SBTi, organizations that set and achieve science-based targets position themselves as sustainability leaders.

SBTi Framework: Setting Science-Based Targets

SBTi provides clear criteria and methodologies to guide organizations in setting emission reduction targets aligned with climate science. The process involves:

1 Establishing a Greenhouse Gas (GHG) Inventory
A company must first develop a comprehensive GHG inventory covering Scope 1, Scope 2, and Scope 3 emissions:

  • Scope 1 – Direct emissions from company-owned assets, including fuel combustion and industrial processes
  • Scope 2 – Indirect emissions from purchased electricity, heating, and cooling
  • Scope 3 – Indirect emissions from value chain activities, including purchased goods, transportation, and end-of-life product treatment

Since Scope 3 emissions often account for over 70% of a company’s total carbon footprint, SBTi strongly emphasizes value chain decarbonization.

2 Selecting Target Ambition Level
Companies can set two types of science-based targets based on their climate commitment:

  • Near-Term Targets – Emission reduction goals for the next 5–10 years to keep businesses on a 1.5°C trajectory
  • Net Zero Targets – Long-term targets for full value chain decarbonization by 2050 or earlier

SBTi encourages companies to prioritize absolute emission reductions over carbon offsetting, ensuring credible climate action.

3 Target Validation and Approval
Once an organization establishes its emission reduction goals, it must submit targets to SBTi for validation. The approval process includes:

  • A detailed review of the company’s emissions inventory and reduction pathways
  • Validation against sector-specific decarbonization criteria
  • Certification of the target as aligned with a 1.5°C or well-below 2°C trajectory

Upon approval, companies receive official SBTi certification, enhancing their ESG credentials and investor confidence.

4 Implementation and Progress Tracking
Setting science-based targets is only the beginning. Businesses must:

  • Integrate emission reduction initiatives into corporate strategy
  • Deploy energy efficiency measures and renewable energy solutions
  • Establish GHG monitoring systems to track emissions reductions
  • Report progress annually through frameworks like CDP, TCFD, and ISSB

SBTi requires businesses to demonstrate continued progress, ensuring meaningful climate action.

Sector-Specific SBTi Guidance

SBTi offers sector-specific pathways for industries with unique decarbonization challenges. Clenergize helps businesses navigate:

  • Energy and Power Sector – Transitioning to renewable energy and grid decarbonization
  • Financial Institutions – Addressing financed emissions and sustainable investment strategies
  • Manufacturing and Heavy Industry – Implementing low-carbon technologies and circular economy models
  • Retail and Consumer Goods – Reducing Scope 3 emissions from supply chains and product lifecycles

By leveraging industry-specific methodologies, businesses can develop tailored decarbonization strategies while remaining compliant with SBTi requirements.

SBTi vs. Net Zero: Understanding the Difference

While Net Zero commitments and SBTi-approved targets are both essential climate strategies, they differ in scope and implementation:

  • SBTi Targets – Focus on absolute emissions reduction within a company’s value chain, ensuring emissions fall in line with climate science
  • Net Zero Pledges – Often include carbon offsets and removals to balance out remaining emissions

SBTi-approved Net Zero targets ensure organizations achieve deep decarbonization before relying on carbon removal solutions.

How Clenergize Supports SBTi Compliance

At Clenergize, we provide end-to-end SBTi consulting and compliance support, ensuring businesses successfully set, validate, and implement science-based targets. Our services include:

  • GHG Inventory Development
    • Measuring Scope 1, 2, and 3 emissions using GHG Protocol and ISO 14064 standards
    • Identifying key emission sources and hotspots for reduction
  • Target Setting and SBTi Validation
    • Defining science-aligned emission reduction pathways
    • Preparing SBTi validation submissions and ensuring successful approval
  • Decarbonization Strategy Development
    • Designing Net Zero and Carbon Neutrality roadmaps
    • Implementing energy efficiency, electrification, and renewable energy solutions
  • Scenario Analysis and Climate Risk Management
    • Conducting climate risk assessments aligned with TCFD recommendations
    • Performing financial impact assessments of climate risks and carbon pricing
  • Ongoing Monitoring and Reporting
    • Establishing GHG tracking systems for real-time emissions monitoring
    • Aligning disclosures with CDP, ISSB, CSRD, and other ESG frameworks

By partnering with Clenergize, businesses ensure credible, science-based climate action that enhances corporate sustainability performance and regulatory compliance.

Why Choose Clenergize for SBTi Compliance

  • Expertise in science-based target setting and validation
  • Proven track record in SBTi submission and approval support
  • Comprehensive GHG accounting and decarbonization strategy implementation
  • Alignment with global ESG disclosure frameworks, including TCFD and CDP
  • End-to-end climate action planning and execution

With Clenergize, businesses gain the expertise needed to achieve SBTi compliance, enhance investor confidence, and drive long-term carbon reduction success.

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Sara Hattar
Sara Hattar

Director Sustainability

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Shyam Yadav
Shyam Yadav

Managing Director

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Our Scope Includes

  • Why SBTi Matters for Businesses
  • SBTi Framework: Setting Science-Based Targets
  • Sector-Specific SBTi Guidance
  • SBTi vs. Net Zero: Understanding the Difference
  • How Clenergize Supports SBTi Compliance
  • Why Choose Clenergize for SBTi Compliance
1000

1000MW

Solar Projects

100

100

ESG & Sustainability Projects

50

50

Energy Efficiency Projects

Frequently Asked Questions

ESG is the integration of sustainability pillars within corporates involving monitoring and measuring corporate impacts on global, national, and local community aspects including Environmental, Social and Governance impacts.

To comply with national agendas and targets. To align with major supplier requirements To position against Competitors To cater to the rise in consumer awareness

It takes from 3-4 moths to develop and build a company's Sustainability Strategy and Framework and create action plans to meet their goals.

Countries in the GCC and MENA region have announced multiple agendas and standards to ensure compliance and alignment to Sustainable Development Goals. Standards include GRI, SASB, IR, LEED, etc.

Some of the most used ESG strategies including Net Zero Carbon, Circular Economy and Waste Management, Sustainable Procurement, Sustainable Investments etc.

Green Financing and Sustainability Linked Loans are a major benefit that banks offer to companies that have a proven track record of implementing Sustainability activities and strategies in their business operations.
For further queries please contact us on info@clenergize.com

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