Science-based targets

A science-based target is a commitment to cut your emissions by as much, and as fast, as climate science says is needed to meet the Paris Agreement goals. When people say a target is “science-based”, they almost always mean it has been checked and approved by the Science Based Targets initiative, known as the SBTi.

What it means for a small business

If you were asked “Is your target science-based?” and thought “What’s that?”, you are in good company. Most small businesses do not have one, and nobody expects them to. It is entirely voluntary.

There are two kinds of target:

• Near-term targets cut your Scope 1 and Scope 2 emissions from a base year. For SMEs, they should be achieved within 5 to 10 years of submission.
• Net zero targets are long-term, covering the deep cuts needed to reach net zero. The SBTi requires an approved near-term target first.

The SBTi has a streamlined route for SMEs. Among other conditions, you need fewer than 10,000 tCO2e across Scope 1 and location-based Scope 2, and at least three of: under 250 employees, turnover under €50 million, total assets under €25 million, or not being in a mandatory forest, land and agriculture sector. SMEs do not have to set a near-term Scope 3 target, but must commit to measure and reduce those emissions. Validation is not free. At the time of writing, SBTi Services lists SME fees from US$1,250 for a near-term target, depending on turnover.

A free, simpler starting point is the SME Climate Hub commitment. New signatories commit to halve emissions within ten years, reach net zero before 2050 and report progress each year. The Hub describes itself as an on-ramp to setting targets with the SBTi later.

An example

A 30-person software company measures a baseline of 22 tCO2e for 2025. It signs the SME Climate Hub commitment first, at no cost. Two years later a major customer asks for an SBTi-validated target, so the company uses the SME route to submit a near-term Scope 1 and 2 target, and commits to measuring its Scope 3 emissions each year.

How ESG Now handles it

The targets section of the questionnaire asks whether you have a carbon target and whether it is science-based. If you are not sure, say so. The report records your answer honestly, alongside your baseline year, target year and priorities, and your footprint gives you the baseline any target needs. Read our guide to the SME Climate Hub commitment, or start your free report.