The Science-Based GHG Targets Initiative (SBTi) was launched in 2015 by the World Wildlife Fund, the Carbon Disclosure Project, the World Resources Institute, and the United Nations Global Compact with the aim of providing the first global, science-based, expert-validated standard for companies and financial institutions to set GHG emissions reduction targets to meet the Paris Climate Agreement, World Resources Institute, and the United Nations Global Compact.

Since its inception, it has grown exponentially to include 4,799 companies, including Apple and Volkswagen, 2,468 of these companies have officially verified their targets, and 1,748 have made net-zero pledges. 

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SBTi requires companies to set and disclose their Near-Term and Long-Term GHG emissions reduction targets within two years, Net-zero targets can also be set. 

Scope of SBTi Targets

• SBTi Guidance exists for each industry 
• The SBT Guidance requires companies to reduce their Scope 3 emissions to 33% when the share of Scope 3 in the total GHG emissions of Scope 1+2+3 is 40% or more. 

Mid- to long-term target setting and implementation criteria 

• GHG emissions from Scope 3 category 15 are targeted based on carbon intensity, which is the unitization of GHG emissions according to the nature of the industry. 
• In addition to long-term targets (e.g., carbon neutrality by 2050), interim targets between 5 and 15 years are required. 

 Net-zero goal setting and implementation criteria

• Net-zero targets and performance criter
• (Net-zero option) A net-zero goal, a goal of zero emissions, is optional for companie
• (Regarding setting the net-zero goal) The year of achievement of the net-zero goal must be no later than 20
• (Restriction on the use of offset credits) SBTi reduction targets must essentially be direct reductions in the company's emission
• Direct reduction means, for example, direct reduction of emissions (fuel consumption of boilers) in the workplace (replacement of boilers with high efficiency boilers
• Offset credits are credits for reductions outside of the targeted company (e.g., reducing emissions through the distribution of cookstoves overseas that are not associated with the company) and are certified by a third-party organization 
• However, only the residual emissions (within 10% of the total emissions) after direct reduction can be offset using carbon credits based on NBS (Nature-based Solution: technologies that directly reduce carbon such as CCUS and biochar). 

SBTi Establishment Process

① Online Registration and Science-Based Target Statement Submission

• Online registration through the SBTi declaration process
• Submit a standard declaration letter
• All declared companies are recognized as "declared" on the homepage and on partner websites CDP and We Mean Business
• Submit goals to SBTi within 24 months of declaration 

② Set goals based on science-based criteria

• Recommended to review SBTi 'HOW-To' guide and 'Net-zero Getting Started' guide
• Recommended review of goal establishment requirements within SBTi Criteria and Recommendations and Net-zero Standard Criteria
• Review the Goal Validation Protocol and Setting Goals both for better understanding. 

③ Submit relevant forms based on organization and goal type

• Schedule verification through the SBTi booking system (technical experts review submissions and perform verification based on scientific standards, and deliver results with in-depth feedback)
• Provide various paid goal verification services 

④ Goal announcement and stakeholder communication

• After approval of goals, publish goals on the "Companies taking action" page on our website and on partner websites.
• Publish goals one month after approval, unless otherwise instructed (if not published within 6 months of approval, revalidation is required to confirm alignment with the latest science-based standards to ensure alignment with the latest science-based criteria)
• Deliver a welcome pack on how to communicate about the new targets 

⑤ Disclose progress

• After approval, annual disclosure of the company's emissions and monitoring of progress toward achieving the goal is required.
• Reporting recommendations: CDP, annual report, sustainability report, company website