What is SBTi: V1.3.1 explained

More and more companies are being asked the same question by customers, clients, or supply chain partners: “Do you have SBTi?” While a few years ago this was mainly a concern for large, international corporations, we are now seeing that SBTi is rapidly becoming a new standard across entire value chains.

At the same time, this also raises questions. Because what exactly is SBTi in concrete terms? Is it a certificate, a label, or primarily a way of working? And just as important: what benefits does it offer your organization, aside from meeting customer demands? In this article, we’ll take a closer look at the various components of the SBTi and where the initial focus should lie when getting started.

The SBTi Corporate Net-Zero Standard, Version 2, was also recently released. 2BHonest will be hosting a Sustainability Dialogue on this topic on September 23, 2026. Please register your interest via this link to receive an invitation.

SBTi (Science Based Targets initiative) is not a one-time certification or a paid membership, but a methodology with an associated validation process. It helps companies reduce their emissions in line with climate science (think: limiting global warming to 1.5°C). You set targets based on scientific scenarios and then have them reviewed by SBTi. This makes it not just an ambition, but a concrete and externally validated reduction pathway verified by an independent organization.

In this article, we explain the current Net-Zero standard (V1.3.1) in a practical way. We do this by focusing on the four building blocks that form the core of the SBTi: data, targets, transition plan, and communication. This will quickly give you insight into what is expected of companies and what it means if you want to get started with this. In the following articles in this series on the SBTi, we’ll also discuss V2.0, compare the two versions, and explore your strategic options as a company.

Table of contents

Data: getting the basics right

The foundation of the SBTi starts with something that seems simple at first glance but is often more complex in practice: a reliable and comprehensive carbon footprint. After all, without a clear understanding of your emissions, you cannot set credible reduction targets.

The starting point is therefore always a greenhouse gas (GHG) inventory. Under SBTi V1.3.1, this means you must account for at least 95% of your Scope 1 and 2 emissions — that is, emissions from your own operations and energy use. In addition, you are expected to prepare a complete Scope 3 inventory, meaning all relevant emissions in your value chain, from purchased goods to transportation, use, and end-of-life of products. To this end, SBTi aligns with the internationally recognized standard: the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Targets: what the SBTi is really about

The core of the SBTi lies in the targets: concrete, measurable goals for reducing your emissions in line with climate science. This isn’t about a single goal, but rather a coherent set of goals with clear rules regarding what you need to reduce, how quickly, and across which parts of your organization.

Short-term and long-term: The SBTi always distinguishes between two types of targets. Near-term targets focus on the next 5 to 10 years and require immediate action. Long-term targets provide direction through 2050, with the goal of a 90% reduction in emissions across the entire supply chain. The remaining 10% of emissions must be offset through permanent CO2 removal to ultimately achieve net-zero.

Which emissions are included? Scope 1 and 2 (your own operations and energy consumption) are always required and must be covered by at least 95%. Scope 3 — emissions in your value chain — is required as soon as they account for a significant portion (40% or more) of your total carbon footprint. This includes purchased goods, transportation, and the use of your products.

How do you measure? You can reduce emissions in absolute terms (for example, “-42% CO₂ by 2030”) or use intensity targets per unit of output. Absolute targets are the most common because they are directly linked to climate impact and are the most comparable. Intensity targets are often used by fast-growing companies but require more specific methods. In addition, specific methods and levels of ambition apply to certain sectors, such as energy, transportation, and construction.

Transition plan: how are you going to do it?

In addition to setting targets, the SBTi expects companies to also consider how to implement them. In version 1.3.1, a transition plan is not yet mandatory, but it is strongly recommended. In practice, however, it is difficult to credibly demonstrate how you will achieve your goals without such a plan. For this reason, a transition plan will become mandatory in Version 2.0.

A good transition plan outlines how an organization will actually reduce its emissions. This includes concrete measures such as improving energy efficiency, making procurement more sustainable, or adapting processes. In addition, it provides insight into how responsibilities are assigned within the organization and how decision-making regarding climate goals is managed. The financial aspect also plays an important role: companies demonstrate how investments and costs contribute to achieving the targets.

Communication: transparency regarding progress and goals

In addition to setting goals and making plans, the SBTi also calls for transparency. Companies must disclose their targets and progress so that customers, investors, and other stakeholders can monitor whether they are actually on track.

In practical terms, this means that approved targets must be made public within six months. In addition, companies are expected to report annually on their emissions and their progress toward their goals. These reports must clearly state the base year selected, the reduction percentages being targeted, and how performance is evolving within Scopes 1, 2, and 3.

Conclusion: What are you supposed to do with this?

If you’re asked today whether you’re “SBTi-compliant,” it’s no coincidence. For more and more companies, it’s becoming the new standard in the supply chain. Customers and supply chain partners don’t just want to see that you’re doing something about CO₂, but also how you’re doing it and whether it aligns with internationally recognized standards.

The first practical step is therefore simple: make sure you gain insight into your emissions across all scopes. Without that foundation, you cannot determine whether the SBTi is relevant, let alone comply with it.

At the same time, it’s important to be realistic. SBTi V1.3.1 is achievable for many organizations, but it does require systematic work: from data collection to target setting and annual reporting. It’s not a one-time effort, but an ongoing process that demands attention.

In closing: this is just the beginning. With the arrival of SBTi V2, the bar is clearly being raised, with greater detail. We’ll cover this in more detail in the next insight, or join us for our “Sustainable Dialogue” webinar on September 23. Register via the link.