The Science-Based Targets Initiative (SBTi) is an initiative built around target setting in line with the 1.5-degree target. The initiative is a collaboration between CDP, UN Global Compact, WRI, and WWF. A large number of companies have now signed up for, and had their climate targets approved according to the initiative.

Targets for Scope 1, 2, and 3 must meet SBTi's criteria for validation and methods for target setting, regardless of the company's growth. To understand how growth affects emissions, it is valuable to analyze emissions data together with financial performance to separate and evaluate their relationship. This helps to determine how much growth actually affects emissions.

Thereafter, it is good to identify emission sources linked to growth so that measures can be taken to minimize the impact. For example, if you plan to open a new facility that will increase energy consumption, the focus should be on using renewable energy to reduce carbon emissions. This measure can then be applied to all your facilities.

For targets to be approved by SBTi, they must be in line with the SBTi criteria. Each criterion must be met for a target to be approved. Performing a gap analysis between your targets and the SBTi criteria is a good way to ensure that your submission will be approved. Consider seeking help from an external expert if needed.

Common concerns include limitations in scope (e.g. exemptions), ambition levels and Scope 3 emissions (e.g. incomplete review or insufficient coverage of targets). Therefore, ensure that these areas receive sufficient focus.

SBTi does not currently directly monitor companies' progress towards their set targets. However, all companies with approved targets must annually report their total emissions to ensure that progress can be tracked. If it is clear from these reports that a company is not meeting its targets, SBTi reserves the right to remove the company from external materials and websites.

It is common for companies not to know every measure required to reach their targets initially. There will always be some uncertainties, which is completely fine, as the known measures are likely to offer many opportunities for first-stage emission reduction, while the company, industry and society continue to develop new solutions.

OER is a framework within SBTi v2.0 that governs how companies take responsibility for ongoing emissionswhile working toward net-zero. Important to understand: OER isnota way to exclude emissions from climate targets. It is a separate track—and a complement to the reduction targets—that measures ongoing responsibility.

Climate targets under the SBTi are aimed at a future target year—often 2040 or 2050. But emissions occur every year along the way. It is precisely this gap that OER is designed to address.

Carbon credits are one of several approved tools within the OER framework. A carbon credit represents one verified metric ton of CO₂e that has either been avoided or removed from the atmosphere. Within OER, carbon credits are used in two ways:

• Your company can choose to purchase verified carbon credits as a way to address ongoing emissions. These may include, for example, removals achieved through nature-based climate solutions, from a biochar project, or through an avoidance project that protects endangered rainforest.

• An alternative is to set an internal carbon price of at least 1% of emissions. This budget can then be used to purchase verified carbon credits, support research and innovation in green technology, or finance projects that support climate adaptation in vulnerable regions.