Science Based Targets initiative

The Science Based Targets initiative (SBTi) is a collaboration between the CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF), with a global team composed of people from these organisations. Since 2015, more than 1,000 companies have joined the initiative to set a science-based climate target.

Organization
The Science Based Targets initiative was established in 2015 to help companies to set emission reduction targets in line with climate sciences and Paris Agreement goals. It is funded by IKEA Foundation, Amazon, Bezos Earth Fund, We Mean Business coalition, Rockefeller Brothers Fund and UPS Foundation. In October 2021, SBTi developed and launched the world's first net zero standard, providing the framework and tools for companies to set science-based net zero targets and limit global temperature rise above pre-industrial levels to 1.5 °C. Best practice as identified by SBTi is for companies to adopt transition plans covering scope 1, 2 and 3 emissions, set out short-term milestones, ensure effective board-level governance and link executive compensation to the company's adopted milestones.

Sector-specific guidance
SBTi developed separate sector-specific methodologies, frameworks and requirements for different industries. As of April 2024, sector guidance is available for:
 * Aluminium (Scoping phase)
 * Apparel and footwear (Finalized)
 * Aviation (In development)
 * Buildings (In development)
 * Chemicals (In development)
 * Cement (Finalized)
 * Financial institutions (Finalized)
 * Forest, Land and Agriculture (Finalized)
 * Information and Communication Technology (Finalized)
 * Land transport (In development)
 * Maritime (Finalized)
 * Oil and Gas (In development)
 * Power (Finalized)
 * Steel (Finalized)

Controversy
In April 2024 the SBTi Board of Trustees released a statement setting out an intention to permit the use of environmental attribute certificates (EACs) for abatement purposes against Scope 3 emissions reduction targets. SBTi did not previously permit the use of EACs due to the difficulties faced in tracing, measuring and validating their impact.

Standards setting organizations (SSOs) that do not follow a consensus model or the WTO principles for international standards development are vulnerable to lobbying from corporations, especially when they are reliant on their funding. One of the SBTi funders, the Bezos Earth Fund, exerted influence on SBTi board members to relax the position on carbon offsets. The statement led to a response letter signed by various teams within the SBTi and media speculation about the policy change. The counter argument being that carbon offsets are incompatible with the Paris Agreement.

Launched in September 2022, the SBTi's Forestry, Land and Agriculture (FLAG) guidance allows companies to claim the achievement of their emission reduction targets through ‘insetting’, breaking from the long-held SBTi position that emission reduction targets should only be achieved through emission reductions. Insetting is a business-driven concept and not a term defined in international standards and guidelines such as ISO 14050 Environmental Vocabulary and IWA 42 Net zero guidelines.

On 2 July 2024, CEO Luiz Amaral announced that he would step down for personal reasons.