Science Based Targets: A helpful guide for businesses

The role of Science Based Targets in climate action

The urgency of climate action has never been clearer. With the Paris Agreement calling for temperature rise limitations well below 2°C, businesses must take proactive steps to reduce their carbon footprint. Companies are no longer being judged solely on financial performance - sustainability and environmental responsibility now play a crucial role in long-term success.

The Science Based Targets initiative (SBTi) provides companies with a clearly defined pathway to help them reduce greenhouse gas emissions, in alignment with climate science and global goals. This ensures that businesses contribute to global decarbonisation efforts in a way that is credible, measurable, and effective.

For ESG managers and sustainability consultants, setting SBTi-aligned net-zero goals is not just about compliance - it’s about risk mitigation, securing long-term business resilience, and maintaining investor confidence. With financial institutions and stakeholders increasingly prioritising sustainability performance, companies must adapt to stay competitive.

This guide walks you through the fundamentals of science-based target setting and how companies can leverage tools to streamline their journey to net-zero emissions while maximizing operational efficiencies and stakeholder trust.

What are Science Based Targets?

Science Based Targets (SBTs) are corporate emission reduction goals that align with scientific pathways to limit global warming. Unlike vague sustainability pledges, SBTs are specific, measurable, and validated by the Science Based Targets initiative (SBTi). These targets ensure that companies are reducing emissions at a pace required to meet global climate commitments rather than relying on offsets or vague commitments.

Understanding the SBTi

The SBTi is a globally recognized framework established through a collaboration between CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). It provides businesses with:

• A science-backed methodology to define emissions reduction goals that align with the latest climate science.
• Third-party validation, ensuring that corporate climate targets are ambitious and credible.
• Guidance on tracking progress and reporting emissions transparently to stakeholders.

As of January 2025, more than 10,000 companies worldwide have set or committed to SBTi net zero targets, with industries ranging from manufacturing to finance adopting science based pathways to decarbonization.

Are there different types of Science Based Targets?

SBTs vary based on a company’s industry, emissions profile, and long-term sustainability commitments. The primary types include:

1. Near-term targets: Emissions reduction goals set for the next 5-10 years, focusing on immediate decarbonisation efforts.
2. Net-zero targets: Long-term targets aligned with achieving full decarbonisation by 2050 or earlier.
3. Sector-specific targets: Tailored reduction goals that account for the unique emissions profiles of different industries, such as energy, transport, and manufacturing (SBTi).

Why are Science Based Targets so important for businesses these days?

Setting science-based targets helps companies align with international climate policies and upcoming regulatory changes. Many governments are integrating SBTi net zero goals into climate legislation, making it essential for businesses to stay ahead of compliance risks. Additionally, companies with SBTi-approved targets benefit from:

• Enhanced investor trust: Businesses with validated science-based commitments are more attractive to investors seeking sustainable and low-risk portfolios.
• Stronger brand reputation: Demonstrating a genuine commitment to emissions reductions strengthens corporate credibility and consumer loyalty.
• Regulatory preparedness: SBTs help businesses comply with emerging ESG disclosure regulations, including the Corporate Sustainability Reporting Directive (CSRD) and SEC cliamte disclosure rules.

By integrating science-based targets into corporate strategy, businesses can drive long-term value while actively contributing to the fight against climate change.

How to set Science Based Targets: The Five-Step process

Setting Science Based Targets usually follows a structured five-step approach, ensuring businesses align with the latest climate science and global best practices:

1. Commit: Companies formally commit to setting targets by signing the SBTi commitment letter, signaling their intention to reduce emissions in line with the Science Based Targets initiative.
2. Develop: Organisations calculate their greenhouse gas (GHG) emissions across Scope 1, 2, and 3 and establish science-based reduction goals aligned with SBTi criteria.
3. Submit for validation: The proposed targets are submitted to the SBTi for independent validation to ensure they align with global climate goals.
4. Communicate: Once validated, companies publicly disclose their targets and integrate them into corporate sustainability strategies and ESG reporting.
5. Monitor & report: Continuous tracking and annual progress reporting ensure transparency and accountability, with companies adjusting strategies as needed to stay on course.

Science Based Targets in practice: Let’s have a look at examples from industry leaders

A growing number of businesses across various industries have successfully set and implemented Science Based Targets, demonstrating that ambitious emissions reductions are possible with clear strategies. Here are some notable examples:

• Microsoft: Pledged to become carbon-negative by 2030, meaning it will remove more carbon from the atmosphere than it emits. The company is investing in renewable energy, direct air capture technologies, and sustainable data center operations.
• Unilever: Targets a 70% reduction in Scope 1 and 2 emissions by 2025, largely through the transition to clean energy in manufacturing and sustainable product innovations. However, challenges remain, including plastic pollution and supply chain emissions. If you would like to learn more about Unilever and sustainability, check out this blog article.
• Ørsted: The energy company has aligned with SBTi net zero and has already reduced its carbon intensity by over 85% since 2006. It is now focused on achieving full decarbonisation of its energy production by 2025.

While these companies have set ambitious SBTs, challenges remain, particularly in reducing Scope 3 emissions, which often constitute the largest share of a company’s carbon footprint. Effective collaboration with supply chain partners and the integration of carbon accounting tools are critical in overcoming these hurdles.

By following the best practices set by leading SBTi companies, businesses can develop tailored strategies that not only meet global climate targets but also drive long-term operational efficiency and resilience.

Benefits of setting Science Based Targets

Aligning with Science Based Targets (SBTs) provides numerous strategic advantages, positioning companies as leaders in corporate climate action. Here’s why businesses should adopt SBTi net-zero goals:

1. Regulatory compliance and risk mitigation

Governments worldwide are enforcing stricter climate regulations, such as the EU Green Deal, the U.S. Inflation Reduction Act, and national net-zero commitments. Setting SBTs ensures that businesses stay ahead of regulatory shifts, avoid potential penalties, and remain compliant with emerging climate policies. Proactive companies that integrate carbon accounting software into their sustainability efforts can simplify compliance tracking and reporting.

2. Enhanced investor & consumer trust

Stakeholders, from investors to consumers, are prioritising businesses with strong sustainability credentials. Organisations that set and achieve science-based targets are more likely to attract green investments, secure long-term capital, and strengthen their brand reputation. Studies show that 73% of young consumers prefer brands committed to sustainability, reinforcing that climate-conscious companies have a competitive advantage.

3. Cost savings through operational efficiency

Investing in carbon reduction strategies can drive significant operational savings. By adopting energy-efficient technologies, optimizing supply chains, and reducing waste, companies can lower energy bills and operating costs while minimizing their environmental impact. According to reports, businesses that actively work toward net-zero can reduce energy costs by up to 30%.

4. Competitive advantage in a carbon-constrained economy

In today’s market, a strong ESG strategy is no longer just a corporate social responsibility measure, it’s a key driver of business growth. Companies that align with SBTi net-zero goals strengthen their market position by demonstrating corporate responsibility, attracting eco-conscious customers, and staying ahead of sustainability trends. Many procurement policies now prioritise suppliers with robust ESG & sustainability reporting, making SBT-aligned companies more attractive partners in global value chains.

5. Access to sustainable financing

With the rise of green finance, ESG-linked loans, and sustainability bonds, organisations with credible climate action plans are more likely to secure funding at favorable terms. Investors, banks, and financial institutions increasingly prioritise businesses that demonstrate a clear commitment to decarbonization and sustainable operations.

6. Competitive advantage & market leadership

Early adoption of SBTi goals and net-zero targets positions businesses as leaders in their respective industries. Sustainability is now a key driver of competitive advantage, helping companies differentiate their brands, attract top talent, and foster stronger relationships with stakeholders.

How your SBTi journey can be professionally supported

Navigating the complexities of how to set Science Based Targets requires a deep understanding of emissions tracking, data analytics, and compliance with evolving regulatory frameworks. Zuno Carbon simplifies this process by equipping businesses with an end-to-end solution for sustainable transformation.

Here’s how Zuno Carbon supports your organization in meeting SBTi net-zero targets:

• Comprehensive carbon accounting: Identify and measure your Scope 1, Scope 2, and Scope 3 emissions, providing a clear and accurate carbon footprint assessment for your organization.
• Data-driven target setting: Leverage carbon emissions tracking and analytics to define, monitor, and adjust your decarbonisation targets according to SBTi’s rigorous criteria.
• Regulatory compliance & ESG reporting: Automate sustainability reporting with frameworks aligned with GRI, IFRS and other leading ESG disclosure frameworks.‍
• Supplier & value chain engagement: Extend emissions tracking and reduction initiatives beyond direct operations to supply chain partners, ensuring compliance across your entire value chain.

As regulatory requirements and investor expectations evolve, having the right technology partner like Zuno Carbon can accelerate your company’s transition towards net-zero emissions while ensuring transparency and regulatory alignment. For a deeper dive into carbon accounting and ESG tracking, check out this blog article.

Turning climate commitments into action

Setting and achieving SBTi net zero is no longer a choice—it is a critical necessity for businesses looking to secure their future. Businesses that take steps to measure and reduce their carbon footprint will not only comply with international sustainability reporting standards but also gain a competitive edge in the marketplace.

Adopting a corporate sustainability strategy that prioritises carbon neutrality and responsible emissions reduction ensures that businesses stay ahead in a rapidly evolving regulatory landscape. Through a combination of accurate GHG accounting, robust sustainability analytics, and science-driven corporate ESG reporting, organisations can turn climate commitments into tangible actions.

As the world moves towards net zero, companies that embrace sustainability are more likely to thrive, attract green investments, and maintain long-term success. Start your journey to net-zero today with Zuno Carbon.

Frequently Asked Questions (FAQs)

1. What are science based targets?

Science Based Targets (SBTs) are scientifically validated carbon reduction goals that help companies align their emissions reduction efforts with global climate science. These targets are designed in line with the Science Based Targets initiative (SBTi) framework, ensuring businesses meet the global goal of limiting warming to well below 2°C and aiming for 1.5°C. SBTs cover Scope 1, 2, and 3 emissions, requiring businesses to assess their entire value chain’s environmental impact.

2. What is the process of setting science based targets?

Companies that commit to science based targets benefit in multiple ways, including:

• Regulatory compliance: Stay ahead of tightening environmental regulations and avoid financial risks associated with non-compliance.
• Enhanced brand reputation: Demonstrate leadership in corporate climate responsibility.
• Operational efficiency gains: Reducing emissions often leads to cost savings by cutting energy consumption and optimizing resource use.
• Investor & stakeholder trust: Investors, customers, and stakeholders favor businesses with strong ESG & sustainability reporting.
• Competitive advantage: Companies aligned with SBTi net zero goals are better prepared for future green business trends and climate change risk mitigation.

3. What is the goal of science based targets?

The primary goal of Science Based Targets is to align corporate climate strategies with the Paris Agreement by ensuring businesses contribute to limiting global warming to 1.5°C. This not only mitigates climate risk but also strengthens corporate sustainability efforts, making companies more resilient in a rapidly evolving business landscape.