SBTi near-term vs net-zero targets: which to choose (2026) – Normative
Everything you need to know about SBTi near-term vs net-zero targets.
Should your company set Science Based Targets initiative (SBTi) near-term targets, net-zero targets, or both? The choice affects your timeline, scope requirements, and credibility with stakeholders, and can ultimately be one of the most consequential decisions a sustainability team can make before entering the validation process. For most companies submitting in 2026, the answer is both: near-term and net-zero targets are submitted simultaneously on the SBTi portal. But the strategic question of which to prioritize, when, and why, depends on factors like your data maturity, regulatory context, and business pressure. This guide breaks down the difference for an average corporate submission (not for the many sector-specific targets that can be set with SBTi) so you can work out the best path for your business.
Understanding SBTi target types
SBTi near-term targets: 5-10 year emission reduction commitments aligned with limiting warming to 1.5°C. Cover Scope 1, 2, and (where significant) Scope 3. These are SBTi 1.5 degree targets designed to drive rapid action in the critical decade ahead.
SBTi net-zero targets: Long-term commitments to reduce total emissions by at least 90% by 2050, with permanent carbon removal neutralizing any residual emissions. Require 1.5°C alignment across all scopes.
Scope 3 coverage thresholds: near-term science-based targets require at least 67% Scope 3 coverage if Scope 3 exceeds 40% of total emissions. Net-zero targets raise that coverage threshold to 90%.
Scope 1 and 2 target boundaries: for both near-term and net-zero targets, organizations are required to have at least 95% coverage across scopes 1 and 2.
Comparing SBTi target types: side-by-side
When weighing near-term vs long-term climate targets, the decision comes down to five factors: timeframe, scope coverage, data readiness, regulatory obligation, and strategic intent. The table below covers all five in more detail.
| Factor | Near-term targets | Net-zero targets |
| Timeframe | 5–10 years from submission (for absolute targets). A supplier engagement target has a maximum length of 5 years. | No later than 2050 |
| Scope 1 & 2 ambition | Aligned with 1.5°C pathway | Aligned with 1.5°C pathway |
| Scope 3 requirement | Mandatory if scope 3 >40% of total; must cover ≥67% | Must cover ≥90% of all scope 3 |
| Residual emissions | Not required; emphasis on deep cuts | Mandatory permanent carbon removal for final 10% |
| Validation timeline | Entire process can take 7-15 months | Longer; more documentation required |
| Who must set them | All standard companies; SMEs have a streamlined option | All standard companies can set net-zero targets; there’s also a tailored option for SMEs |
| Public commitment signal | Immediate near-term accountability | Long-term strategic endpoint |
One nuance worth noting is that companies new to SBTi in 2026 are setting near-term targets to approximately 2035, not 2030. For those setting targets for validation in H1 2026, the target year is 2030-2035, while it is 2031-2036 for businesses doing so in H2 2026. It’s important to note that these target years depend on when you make a submission, not when you get validated.
For smaller organizations, the picture is different. Companies qualifying for the SBTi SME streamlined route are only required to set near-term targets. Net-zero targets are optional for this group, which makes the near-term decision considerably simpler for businesses that meet the following eligibility criteria:
- <10,000 tCO2e across scope 1 and location-based scope 2
- Aren’t a subsidiary of a parent company whose combined businesses make it eligible for the Standard validation route
- Don’t come within the Financial Institutions and Oil & Gas sectors
- Aren’t required to use sector-specific criteria when setting SBTi targets
In addition to the above, three or more of the following criteria must be met:
- <250 employees
- <€50 million annual turnover
- <€25 million worth of total assets
- Don’t fall under a mandatory FLAG sector
What are SBTi near-term targets?
Near-term targets are the foundation of the SBTi framework, the mechanism through which companies commit to deep, rapid emission reductions over the next five to ten years. For most organizations, they are also the right place to start.
How could near-term science-based targets fit your business?
Understanding the Science Based Targets initiative requirements before you begin will save time and reduce the risk of a failed submission. In an ideal scenario, businesses would commit to setting both near term and net-zero targets across all scopes at the same time. It signals the strongest possible commitment to reducing emissions and also works out cheaper. There are particular aspects of near-term targets that make them especially suitable for businesses that are early in their sustainability journey, with lower quality scope 3 data.
If your organization is new to science-based targets, near-term targets provide a clear entry point. They create immediate, verifiable accountability and are the signal that investors, customers, and procurement teams most commonly look for. You don’t need a complete decarbonization roadmap to begin, but you need credible near-term commitments backed by solid scope 1 and 2 data.
If your scope 3 data is still developing: don’t delay setting targets in pursuit of perfect data. Our Climate Strategy Advisers have worked with dozens of companies through the SBTi process, and the reality is consistent: no company enters the process with 100% activity data. What SBTi expects is a credible improvement trajectory, not perfection. Spend-based data is accepted as a starting point, provided you can demonstrate a clear plan for moving toward supplier-specific or activity-based data over time.
If external pressure is driving your timeline: from a PE owner requiring portfolio-wide SBTi adoption, from supply chain customers, or from public reporting commitments, SBTi near-term targets deliver the validated credibility signal you need without requiring the full scope of work that a net-zero submission demands. This is one of the most common situations we see. The decision to pursue SBTi is made not by the sustainability team, but by a shareholder or investor who has set a portfolio-level mandate.
All you need to know about SBTi
Normative customers achieve a 100% SBTi validation rate. If your organization is weighing its first submission, talk to our experts.
SBTi Net-Zero Target Requirements
Net-zero targets set a company’s long-term destination: a reduction of at least 90% across scope 3 by 2050, with any residual emissions neutralized through permanent carbon removal. They are not a substitute for near-term action, rather they are a complement to it, providing the strategic endpoint that near-term targets work toward.
When a net-zero target is the right call
For companies with comprehensive scope 3 measurement, a net-zero target is a natural next step once near-term targets are in place and scope 3 data quality is strong. The 90% coverage requirement means this is not achievable for companies still building their value chain data capability, but for those who have invested in that work, a net-zero submission is the logical progression and a stronger signal of climate leadership.
For companies operating under EU regulation, while SBTi targets aren’t mandatory, setting science-aligned targets will contribute to optimizing carbon accounting within a business. For example, although CSRD and CSDDD have decreased in scope since the changes initiated by Omnibus I, businesses will still need to provide high quality data to meet compliance requirements, – setting science-based targets will help in this respect. Companies that set SBTi-validated targets will be well-positioned regardless of how CSRD obligations evolve.
For companies facing investor pressure, the dynamic is similar. Financial institutions setting portfolio-level net-zero targets need their investee companies to hold validated net-zero commitments to meet their own scope 3 obligations. This creates a pull that runs from asset manager through to portfolio company, and it is one of the fastest-growing drivers of net-zero SBTi submissions we are seeing in 2026.
SBTi target setting: what our climate strategists recommend
For most companies, the question is not near-term or net-zero, it is a matter of when to do both.
- For companies earlier in the process, while some may want to ease their way into the process and set near-term targets before graduating to net-zero targets, it is not essential to take this approach. Both can be done at the same time. Why? Net-zero targets can be set on the same inventory as near-term targets. This means that if you’re submitting near-term targets for scopes 1, 2 and 3, then you already have the data you need to set a net-zero target.
- For companies with strong Scope 3 measurement, submitting both simultaneously is both feasible and increasingly expected. Standard-route companies typically submit near-term and net-zero targets together on the SBTi portal in a single submission. Doing so signals completeness of strategy and means you go through the SBTi target validation process once rather than twice, which also reduces costs.
Businesses also need to be aware of the changes that are being proposed as part of the consultation on the SBTi’s proposed v2 standards. While this process of updating the standards remains in progress, the proposed changes could make requirements more demanding. For example, 100% coverage of scope 3 emissions could be required for businesses setting net-zero targets, as opposed to the current 90%.
Whichever path your organization is on, the investment in getting the submission right the first time pays for itself. Normative customers achieve a 100% SBTi validation rate. Speak to a Climate Specialist to map your path from commitment to approval.
FAQs
The SBTi target validation process can take 7-15 months, factoring in the preparation before submitting. Backlogs at SBTi can extend this. The key variable is preparation: companies that enter validation with complete, defensible data move through the process faster and require fewer clarification rounds.
Near-term targets cover 5-10 years from submission (for absolute targets) and focus on delivering rapid, deep emission reductions on the pathway to halving emissions by roughly the mid-2030s. A supplier engagement target has a maximum length of 5 years. Net-zero targets commit a company to reducing emissions by at least 90% by 2050, with permanent carbon removal for any residual emissions. Most standard-route companies now submit both simultaneously. For SMEs on the streamlined route, only near-term targets are required.
Yes, but there are important caveats. If your business changes by more than 5% through M&A, divestiture, or even a significant change in emissions calculation methodology, you may be required to resubmit. The critical point: resubmission means adopting the current SBTi standards at that time, which are expected to become more stringent with v2. It also means paying again. Companies that have been validated under older, less demanding standards have a genuine incentive to avoid resubmission where possible.
Only if scope 3 exceeds approximately 40% of your total emissions, which applies to the majority of companies. If it does, your near-term targets must cover at least 67% of your scope 3 emissions. Spend-based data is accepted as a starting point, but SBTi will expect a credible plan to improve data quality over time. For net-zero targets, the coverage requirement rises to 90%.
