Science Based Targets Initiative (SBTi) — Net-Zero Standard

International (SBTi)

v2024 (Net-Zero Standard)

6 domains

21 controls

The Science Based Targets initiative (SBTi) provides a framework for companies to set greenhouse gas emission reduction targets consistent with climate science. Over 7,000 companies have committed to or set science-based targets. The SBTi Net-Zero Standard (2021) requires: near-term targets (50-58% reduction by 2030), long-term targets (90-95% reduction by 2050), and neutralisation of residual emissions. Sector-specific guidance available for: financial institutions, power sector, buildings, cement, chemicals, steel, forest/land/agriculture, aviation, and maritime. SBTi validates targets against 1.5°C pathways. Recognised by CSRD, ISSB, and major ESG rating agencies.

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Framework Domains (6)

Beyond Value Chain Mitigation

6 controls

Controls in the Beyond Value Chain Mitigation domain of Science Based Targets Initiative (SBTi) — Net-Zero Standard — 6 controls
Code	Title	Description
C17	BVCM Investment	Companies are encouraged to invest in beyond value chain mitigation measures such as carbon credits or direct removal.
C18	No Offsetting of Targets	Carbon credits cannot be counted toward meeting near-term or long-term science-based emission reduction targets.
C19	BVCM Reporting	Companies must separately report any BVCM actions and not conflate them with value chain emission reductions.
NZ-BV-1	BVCM Investments	Companies are encouraged to invest in beyond value chain mitigation actions such as carbon credits to accelerate societa...
NZ-BV-2	High-Quality Carbon Credits	Any carbon credits used for BVCM must meet recognized quality criteria and should not substitute for direct reductions.
NZ-BV-3	Transparency and Reporting	Companies must transparently report on BVCM activities separately from progress toward their science-based targets.

Governance and Validation

4 controls

Controls in the Governance and Validation domain of Science Based Targets Initiative (SBTi) — Net-Zero Standard — 4 controls
Code	Title	Description
NZ-GV-1	Target Validation	All targets must be validated by SBTi-designated validators against the Corporate Net-Zero Standard criteria.
NZ-GV-2	Annual Progress Reporting	Companies must publicly report emissions data and progress toward targets on an annual basis.
NZ-GV-3	Target Recalculation	Targets must be recalculated when significant changes in company structure, methodology, or data occur.
NZ-GV-4	Abatement Feasibility Assessment	Companies must demonstrate the technical and financial feasibility of their planned abatement strategies.

Long-Term Science-Based Targets

4 controls

Controls in the Long-Term Science-Based Targets domain of Science Based Targets Initiative (SBTi) — Net-Zero Standard — 4 controls
Code	Title	Description
NZ-LT-1	Long-Term Emissions Reduction	Companies must set a long-term target to reduce emissions by at least 90% across all scopes before 2050.
NZ-LT-2	Full Value Chain Coverage	Long-term targets must cover at least 95% of Scope 1 and 2 emissions and 90% of all Scope 3 emissions.
NZ-LT-3	Sector-Specific Pathways	Long-term targets must align with sector-specific decarbonization pathways where available from the SBTi.
NZ-LT-4	Target Year Requirement	The long-term target year must be no later than 2050 in line with global net-zero timelines.

Near-Term Science-Based Targets

4 controls

Controls in the Near-Term Science-Based Targets domain of Science Based Targets Initiative (SBTi) — Net-Zero Standard — 4 controls
Code	Title	Description
NZ-NT-1	Scope 1 and 2 Near-Term Target	Companies must set near-term targets covering at least 95% of Scope 1 and Scope 2 emissions to halve emissions before 20...
NZ-NT-2	Scope 3 Near-Term Target	If Scope 3 emissions exceed 40% of total emissions, companies must set a target covering at least 67% of Scope 3 emissio...
NZ-NT-3	1.5C-Aligned Pathway	Near-term targets must be consistent with emissions reduction pathways that limit global warming to 1.5 degrees Celsius.
NZ-NT-4	Target Timeframe	Near-term targets must have a target year of no more than 5 to 10 years from the date of target submission.

Neutralization of Residual Emissions

3 controls

Controls in the Neutralization of Residual Emissions domain of Science Based Targets Initiative (SBTi) — Net-Zero Standard — 3 controls
Code	Title	Description
NZ-NE-1	Residual Emissions Neutralization	Companies must neutralize any residual emissions at the net-zero target year using permanent carbon removals.
NZ-NE-2	Permanent Carbon Removal	Neutralization requires counterbalancing remaining emissions with permanent removal and storage of carbon from the atmos...
NZ-NE-3	Ongoing Neutralization	Companies must continue neutralizing residual emissions beyond the net-zero target year to maintain net-zero status.

Target Setting

0 controls

Science-based target requirements