Background: After defining organizational and operational boundaries and understanding current performance, companies set targets to reduce emissions from their operations and value chains in line with net-zero pathways. This chapter sets out the requirements for establishing measurable targets across scope 1, scope 2, and scope 3 emissions.
When setting targets, companies determine their ambition based on their physical GHG inventory, including, where applicable, the location-based method for scope 2. This ensures that targets are grounded in emissions associated with the underlying emissions-generating activities within each company’s operations and value chain.
To enable recognition of a broader range of actions that support target implementation, companies separately account for and report actions and market instruments not reflected in their physical GHG inventories, in accordance with relevant GHG accounting standards set out in Chapter 2. This approach preserves the physical GHG inventory as the basis for target setting, while enabling companies to transparently report additional actions they take to implement targets and support decarbonization.
Companies set targets using SBTi-defined metrics and methods calibrated to science-based net-zero pathways. These are designed to support consistency across reporting and target-setting frameworks. Additional science-based target-setting methods and pathways may be proposed to the SBTi for consideration in accordance with applicable procedures (forthcoming).
SBTi targets are expected to be pursued on a best-efforts basis, subject to clearly stated assumptions and external dependencies. Companies are expected to actively use all available levers within their control or influence to implement their targets and to actively work to address barriers and dependencies, including operational improvements, procurement choices, supplier engagement, and product or service innovation.
Together, these requirements ensure that targets reflect companies’ current emissions profiles and remain aligned with eligible net-zero pathways, providing a credible basis for tracking company-level progress toward emissions reductions and contributing to broader efforts to achieve a net-zero economy by 2050 or earlier.24
To ensure companies set robust targets for their operational and value chain emissions that drive measurable progress using standardized metrics and methods aligned to science-based net-zero pathways and established accounting approaches.
To ensure companies set comprehensive targets to reduce and ultimately eliminate scope 1 emissions from sources they own or control. Companies use standardized target-setting options appropriate to their activities, including absolute emissions reduction, sector-specific emissions intensity, or company-specific asset transition targets, all consistent with reaching net-zero emissions by 2050 at the latest.
To enable companies to decarbonize their purchased electricity, heat, steam, and cooling, and contribute to the decarbonization of the energy systems that supply them, through the setting of comprehensive scope 2 targets. Requirements for implementing scope 2 targets, including geographic and temporal matching, are covered in the Target Implementation chapter, Sections 4.3 and 4.4.
To ensure companies focus their scope 3 targets on the most material emissions sources in their value chains and where they can credibly take action, while allowing limited, justified exclusions for emissions where companies lack the practical ability to influence outcomes.
To drive supplier, customer, and product performance compatible with a net-zero economy by ensuring that companies set comprehensive scope 3 targets using practical and science-based approaches. When scope 3 activities are covered by targets set through applicable SBTi Sector Standards, including for forest, land, and agriculture (FLAG), companies are not required to set scope 3 targets for those same activities under the Corporate Net-Zero Standard.
To ensure that any company setting a net-zero target does so on the basis of comprehensive near-term and long-term targets covering all scope 1, scope 2, and scope 3 emissions, and reaches a state of net-zero through deep emissions reductions and the neutralization of residual emissions.
To drive transparency by requiring companies to report clear, consistent, and timely information about their target base year and targets.
To ensure that targets remain valid, science-based, and aligned with the effective SBTi Standards over time by requiring companies to revise targets where necessary following significant structural or methodological changes.
