Companies must set reduction targets for their scope 1 and 2 emissions for the next 5-15 years that are consistent with a temperature rise below 1.5°C compared to pre-industrial levels.
Companies must also measure all of their scope 3 emissions
If the company’s scope 3 emissions make up more than 40% of their total emissions, they must also set a reduction target for scope 3 emissions.
In order to set SBTi’s, companies must do the following:
Set a scope: Companies need to define the scope of their emissions, including which emissions sources will be covered by their target
Choose a target setting method: companies need to select one of four SBTi-approved methods for setting their emissions targets
Develop a target: Companies need to calculate their emissions reduction target based on their chosen method and ambition level, as well as set a timeline for achieving the target
Submit for validation: once the target has been developed, companies can submit it to the SBTi for validation, which involves an independent assessment to ensure the target meets the SBTi’s criteria for scientific rigor and alignment with the Paris Agreement