What is the Science Based Targets initiative (SBTi)?
The SBTi is a global partnership that guides companies in setting greenhouse gas (GHG) reduction targets that align with the Paris Agreement and the 1.5°C pathway. Its mission is simple yet ambitious:
- Cut global emissions in half by 2030,
- Reach Net Zero emissions by 2050,
- Provide a standardised and science-based method for setting corporate climate targets.
By following the SBTi, organisations can demonstrate to stakeholders that their climate strategies are robust, transparent, and backed by science.
Inside the Net-Zero Standard Framework
The Net-Zero Standard ensures that companies don’t just “offset” emissions, but truly transform their operations and value chains. It defines corporate Net Zero as:
- Reducing Scope 1, 2, and 3 emissions to near-zero levels aligned with 1.5°C pathways.
- Neutralising residual emissions with permanent carbon removal and storage.
- Mitigating beyond the value chain by investing in wider climate solutions (optional but strongly encouraged).
This three-step approach creates both short-term checkpoints and long-term accountability.
- Decarbonise Your Business and Value Chain
Near-Term Targets (5–10 years): These are science-based checkpoints consistent with 1.5°C pathways. They drive immediate action and require regular updates to stay on track.
Long-Term Targets (to 2050 or earlier): These outline how much a company must reduce emissions across its entire value chain to claim Net Zero credibly. Without achieving long-term targets, a Net Zero claim is incomplete.
- Neutralise Residual Emissions
Even with deep decarbonisation (reductions of 90% or more), some emissions will remain. To reach Net Zero, companies must neutralise these through permanent carbon removal and storage—for example, using technologies like direct air capture or nature-based solutions with proven permanence.
- Beyond Value Chain Mitigation
While the priority is to decarbonise their own operations, companies are encouraged to go further by investing in mitigation outside their value chains. Examples include financing renewable energy projects, reforestation, or soil management programs. These efforts help accelerate global progress and strengthen corporate climate leadership.
Challenges Companies Face in the Net-Zero Journey
While the framework is clear, implementation can be complex. Common challenges include:
- Data gaps: Especially in the Scope 3 supply chain emissions.
- Evolving regulations: Disclosure requirements vary by region and sector.
- Resource intensity: Developing robust monitoring and reporting systems.
- Stakeholder pressure: Investors and consumers increasingly demand transparency.
Benefits of Aligning with SBTi
Despite the challenges, the benefits of adopting science-based targets are substantial:
- Investor confidence through credible climate commitments.
- Stronger brand reputation and consumer trust.
- Regulatory readiness in an era of mandatory climate disclosures.
- Operational efficiency by identifying cost savings in energy and resource use.
How Faradai Supports Your Net Zero Transition
At Faradai, we empower organisations to turn commitments into action. Faradai Net Zero Intelligence platform provides:
- Accurate emissions calculations for Scope 1, 2, and 3 (covering 2000+ activity datasets, including waste, water, transport, and supply chain).
- Target-setting tools aligned with the SBTi Net-Zero Standard.
- Real-time progress tracking and automated reporting.
We simplify the complexity of Net Zero, so your business can focus on creating long-term value and positive climate impact.
Conclusion: Why Start Now?
The SBTi Net-Zero Standard sets the global benchmark for credible and science-based climate action. Companies that act now can mitigate regulatory and operational risks, foster investor and consumer trust, and capitalise on opportunities in the rapidly growing low-carbon economy. With Faradai Net Zero Intelligence Platform, organisations can simplify emissions management, track progress in real-time, and achieve a measurable climate impact. Start today to transform sustainability commitments into tangible growth, resilience, and long-term success.