How Realistic Is Your Net-Zero Target? Discover SBTi Criteria

Today, many companies wishing to fight the climate crisis are announcing their net-zero targets. Press releases are published, and dates are shared in sustainability reports. However, how realistic and applicable are these targets? Today, we will explore how net-zero decisions are measured and validated within the framework of the Science Based Targets initiative (SBTi).

What Is a Net-Zero Target and Why Is It Important?

First of all, a net-zero target is a commitment by a company or institution to reduce its greenhouse gas emissions to zero within the year or to balance its remaining emissions through carbon offsets. However, the critical point here is not just reducing emissions, but doing so based on scientific data. This is precisely where the SBTi comes in.

The SBTi ensures that companies set targets to combat climate change in line with the temperature increase limits recommended by the IPCC (Intergovernmental Panel on Climate Change) reports. Thus, the set targets serve the purpose of keeping global warming below 1.5°C and provide a realistic roadmap for emission reduction. According to the IPCC, to limit global warming to 1.5°C, global emissions must be reduced by approximately 45% by 2030 and reach net-zero around 2050. Company targets must also be aligned with this global carbon budget.

What Is SBTi and What Does It Validate?

The Science Based Targets initiative is an international initiative that assesses and validates companies' greenhouse gas reduction targets according to scientific methodology. Companies set their targets, calculate them according to the SBTi methodology, and undergo an independent technical review.

The SBTi checks the following:

1. Whether the target is aligned with the 1.5°C scenario

2. Whether emission scopes are correctly included

3. Whether the timeline is sufficiently ambitious

4. Whether the long-term reduction targets for net-zero are sufficient

Details of SBTi Criteria

There are some fundamental criteria that companies wishing to set SBTi-validated targets must comply with:

• Comprehensive Emission Reduction: Targets must include not only direct emissions but also indirect emissions from energy consumption.

• Science-Based Measurements: Targets must be consistent in numeric terms and timeline on the path to limiting global warming to 1.5°C.

• Net-Zero Strategy: Companies must prioritize emission reduction before carbon offsetting; solutions such as carbon purchases and preventing deforestation should only be implemented after reductions.

• Transparency and Accountability: Annual reporting and disclosure of progress to the public are mandatory, so that commitment to the targets can be verified.

These details guarantee that you or your organization have a plan that is truly effective on the path to sustainability.

Key Components of a Net-Zero Strategy

A realistic net-zero plan typically includes the following steps:

• Detailed preparation of the emission inventory

• Setting science-based short- and long-term targets

• Energy efficiency investments

• Renewable energy contracts (PPA etc.)

• Supply chain carbon management

• Circular economy applications

• Digital tracking and reporting infrastructure

The Difference Between Net-Zero and "Carbon Neutral"

These two concepts are often confused:

• Carbon neutral: Emissions can be balanced with offsets while they continue.

• Net-zero: Emissions are expected to be reduced by up to 90-95%; only the remaining small portion is balanced with removals.

The SBTi net-zero standard is much stricter and requires structural transformation compared to carbon neutrality.

Do You Think Your Net-Zero Target Is Realistic?

If you have set a net-zero target as a company, how well do these targets align with the SBTi criteria? If there are missing points, it is possible to identify them and turn them into a realistic plan by correcting them step by step. Rememebet, climate action is not just a matter of prestige; it is a matter of continuity and responsibility.

7 Questions You Can Ask Yourself

1. Have you actually measured your Scope 3 emissions?

2. Have you set an absolute reduction percentage for 2030?

3. Are you dependent on offsets?

4. Do you impose reduction requirements on your suppliers?

5. Do you track progress annually?

6. Is senior management integrated into the process?

7. Is your investment plan aligned with your targets?

If you cannot give clear answers to these questions, your target might need a revision.

Taking small but effective steps throughout the process is also very valuable: Progressing in areas such as energy efficiency, transition to renewable energy, and supply chain management makes a serious contribution on the path to net-zero.

As QuickCarbon, we enable transparent tracking of processes with our user-friendly software that calculates and reports according to the ISO 14064-1:2018 Standard and GHG Protocol. In addition, SBTi efforts are carried out by our expert team in accordance with the international framework. You can contact us to request a demo and to get detailed information about the processes.