Setting a science-based target is an incredibly complex, highly structured logistical operation involving four aggressive stages: Commit, Develop, Submit, and Communicate.
Think of the process exactly like submitting a massive architectural planning application. First, you legally declare your intent to build (Commit). Then, you survey the land and draw incredibly detailed blueprints (Develop). You submit the finalized blueprints to government regulators for a brutal audit (Submit). Upon approval, you publicly display the permits and report construction progress (Communicate). Skipping any stage destroys the entire project.
Stage 1: Commit
The entire operation fundamentally begins with a commitment letter. This formal declaration signals intense intent to external stakeholders and the SBTi.
Crucially, submitting this letter instantly starts a terrifying countdown clock: companies possess exactly 24 months to successfully develop and submit targets for validation.
If a company violently fails to submit within the 24-month window, the SBTi actively deletes them from the committed list. The SBTi publicly publishes this removal, guaranteeing massive reputational damage regarding investors and consumers.
During this period, companies must never falsely claim they possess validated targets. They only possess the "commitment to set" them.
Stage 2: Develop
The Develop stage requires immense technical execution across a brutal five-step gauntlet.
Step 1: Select a Base Year
Companies must establish a rigid base year to track performance.
- It must absolutely be no earlier than 2015.
- Scope 1 and 2 targets must use the exact same year.
- The year must represent standard operations (avoiding catastrophic anomaly years like 2020).
Step 2: Calculate Emissions
Companies must execute a flawless GHG emissions inventory deploying the GHG Protocol. It must cover all seven terrifying GHGs (CO2, CH4, N2O, HFCs, etc.).
- Carbon credits absolutely must not be subtracted from the inventory.
- Avoided emissions must be totally excluded.
- Fossil fuel sellers must aggressively report all use-phase emissions.
Step 3: Set Target Boundaries
Boundaries dictate exactly what percentage of the mammoth corporate footprint the targets must legally conquer.
- Near-term: Scope 1 and 2 targets must aggressively cover at least 95% of emissions. Scope 3 targets must cover 67% (if Scope 3 exceeds 40% of the total footprint).
- Long-term: Scope 1 and 2 must maintain 95%. Scope 3 must furiously expand coverage to a massive 90% of total Scope 3 emissions.
Step 4: Choose a Target Year
Near-term targets must strike within a 5-10 year window from submission. Long-term targets must strike by 2050 at the absolute latest.
Step 5: Choose a Target-Setting Method
Companies deploy massive SBTi calculation tools to finalize the mathematics. The dominant method is Cross-sector absolute contraction (ACA), which brutally forces absolute emissions down 4.2% per year in the near-term and an uncompromising 90% overall in the long-term.
Stage 3: Submit
After surviving the development gauntlet, companies submit everything directly into the SBTi Services Validation Portal. This absolutely requires submitting total GHG inventory data, tool outputs, and paying a massive validation fee.
The SBTi auditor ruthlessly cross-examines the submission against every single mandatory criterion. Failure results in immediate targeted rejection and forced resubmission. Success results in public addition to the SBTi target dashboard.
Stage 4: Communicate
Validation absolutely does not end the nightmare; it merely begins the permanent compliance obligations.
- Public Announcement (C28): Companies must publicly announce their approved targets within exactly six months using the legally approved SBTi wording.
- Annual Reporting (C25): Companies must publicly disclose GHG emissions and mathematical target progress every single year.
- Mandatory Review (C26): Targets surviving five years must be fiercely re-audited against the latest, strictest SBTi criteria.
Large Company vs SME Route
Large companies must run the complete gauntlet: commit, develop using massive tools, submit, and survive validation.
SME Route: Small and Medium Enterprises deploy an aggressively streamlined route. They totally bypass the commitment letter and bypass complex tool-based calculations, immediately selecting from predefined aggressive targets. This protects smaller firms from utterly disproportionate technical burdens.
Recalculation Triggers
The SBTi forces immediate target recalculation and revalidation (Criterion C27) if massive structural earthquakes hit the business:
- Scope 3 emissions suddenly balloon past the 40% threshold.
- Massive corporate mergers, acquisitions, or divestitures occur.
- Data errors or methodology updates violently shift base year emissions by 5% or more.
The SBTi aggressively bans commitments or validations from companies rooted in the oil, gas, or fossil fuel sectors while customized methodologies undergo development. Furthermore, companies in adjacent sectors distributing fossil fuels face devastatingly strict requirements specifically targeting their Scope 3 use-phase emissions.
Key Takeaways
- 1The target-setting process follows four stages: Commit (letter of intent), Develop (base year, inventory, boundaries, methods), Submit (validation portal audit), and Communicate (public disclosure)
- 2Companies have exactly 24 months from commitment to submit targets - failure results in public removal from the SBTi committed list
- 3Near-term targets require 95% Scope 1+2 coverage and 67% Scope 3 coverage; long-term targets expand Scope 3 coverage to 90%
- 4The dominant method is cross-sector absolute contraction (ACA) demanding 4.2% linear annual reduction for near-term and 90% total for long-term
- 5SMEs access a streamlined route that bypasses the commitment letter and complex calculations, using predefined targets instead
- 6Structural changes shifting the base year inventory by 5% or more trigger mandatory recalculation and revalidation