Mastering SBTi Certification: A Comprehensive Guide to Science-Based Climate Targets

Want to take your climate goals to the next level? SBTi certification helps companies set science-based emissions targets that align with the Paris Agreement. With over 10,000 participating companies worldwide, it’s a clear advantage—especially for German businesses facing increasing demands from investors and customers. According to the SBTi Progress Report 2023, the number of companies setting science-based targets has grown exponentially, reflecting a global shift toward credible climate action (source).

What you need to know:

• Why SBTi? Credibility, transparency, and competitive edge through clear climate targets.
• 6-step process: From registration to annual progress reporting.
• Common mistakes: Incomplete Scope 3 data, incorrect ambition levels, weak data organization.
• Preparation: Data analysis, engaging all stakeholders, and support from experts.

With the right planning and the right tools, you can avoid pitfalls and make the certification process efficient. Now is the time to take responsibility and reap the benefits. As regulatory frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD) come into force, SBTi certification also helps future-proof your business (source).

The SBTi Certification Process: 6 Steps

The path to certification by the Science Based Targets initiative (SBTi) follows six clearly defined steps: registration, commitment, development, submission, communication, and disclosure. This framework is designed to ensure that targets are robust, transparent, and aligned with climate science (source).

Step 1: Registration and Commitment

The first step is to register in the SBTi Services Validation Portal to determine eligibility. After that, you can submit a letter of commitment. For corporations and financial institutions, this is optional. It’s important to provide a dedicated team and the necessary resources. SBTi recommends setting ambitious targets based on net zero and limiting global warming to 1.5°C, covering the entire value chain. Notably, the SBTi’s Net-Zero Standard is now the global benchmark for corporate net-zero target setting (source).

Step 2: Target Development

Target development is based on SBTi standards, criteria, and guidelines. All greenhouse gas emissions—100%—must be considered. A key principle is:

“Companies should not default to the target that is easiest to meet but should instead use the most ambitious decarbonization scenarios and methods that lead to the earliest reductions and the least cumulative emissions.”

Companies may only exclude areas, regions, or business streams that account for less than 5% of total emissions. Insufficient data availability is not an acceptable reason for omitting emissions. Reliable data for Scope 1, Scope 2, and Scope 3 emissions for a representative base year is essential. According to the GHG Protocol, Scope 3 emissions can account for up to 70% of a company’s total carbon footprint, underscoring the importance of comprehensive data (source).

Step 3: External Validation

The developed targets are submitted via the SBTi Services Validation Portal. It is crucial to fill out all required forms carefully and document targets precisely. SBTi checks whether the targets meet science-based standards and provides detailed feedback for improvement if necessary. For example, a validation pause in the automotive sector led to new guidelines for Scope 3 emissions. After successful validation, targets can be officially communicated.

Step 4: Communicating the Targets

After validation, companies should publicly announce their targets. This creates transparency and strengthens stakeholder trust. Clear communication helps manage expectations and makes progress visible. According to a 2023 survey, 79% of executives reported improved brand reputation after announcing SBTi targets (source).

Step 5: Implementing the Targets

The validated targets must be integrated into operations. This includes introducing reliable systems for data collection and reporting to monitor relevant KPIs and measure progress. Companies should define clear indicators such as emissions reduction, energy efficiency, and the share of renewable energy, and review these regularly—at least every five years or in the event of significant changes. The World Resources Institute recommends embedding climate targets into business strategy for maximum impact (source).

Step 6: Progress Reporting

SBTi requires companies with science-based targets to publicly report their greenhouse gas emissions and progress toward targets annually. In 2022, 76% of companies with such targets reported their progress publicly, but only 53% fully covered all short- and long-term targets. Between 2015 and 2021, companies reduced their Scope 1 and Scope 2 emissions by 25%. For 1.5°C-aligned targets, an annual reduction of at least 4.2% is required. Standardized platforms such as CDP, GRI, or TCFD can be used for this purpose. Regular reporting not only demonstrates progress but also builds trust with stakeholders and investors (source).

Common Mistakes and How to Avoid Them

SBTi certification is a demanding process, and German companies often face similar challenges. For example, an analysis of DAX-40 companies shows that seven of these corporations do not report any Scope 3 emissions. Of the remainder, only half cover more than four categories of indirect emissions. Such gaps can significantly delay validation. Here, we look at typical stumbling blocks and how you can effectively avoid them. This pattern is echoed globally, with many organizations underreporting indirect emissions, which can account for the majority of their climate impact (source).

Challenges with Scope 3 Emissions

A common problem is incomplete tracking of Scope 3 emissions, which can significantly slow down the certification process. Less than half of DAX-40 companies report on the key category “use of sold products,” and only 26% provide data on emissions from “purchased goods and services.” These deficits are often due to inconsistent accounting approaches.

Bernhard Bartels, Managing Director at Scope ESG Analysis, emphasizes: “The pressure on companies worldwide to report their CO₂ emissions is steadily increasing—both from regulation and from investors.”

Despite this growing pressure, only about 6% of companies with SBTi-approved targets use detailed, supplier-specific data. Many instead rely on industry averages, as data collection is complex. According to CDP, Scope 3 emissions are on average 11.4 times higher than direct emissions, highlighting the importance of robust supply chain engagement (source).

Solution: Start with a complete overview of all 15 Scope 3 categories and identify the most important ones for you. Focus on direct data collection from your key suppliers and customers, rather than relying solely on estimates. Clearly and transparently document your methodology to facilitate validation. The SBTi Supplier Engagement Guidance provides practical steps for improving data quality (source).

Misunderstandings of SBTi Requirements

Another issue is misjudging the ambition requirements. Many companies choose the easiest achievable target, even though SBTi explicitly demands:

“Companies should not default to the target that is easiest to meet but should instead use the most ambitious decarbonization scenarios and methods that lead to the earliest reductions and the least cumulative emissions.”

The automotive sector felt this especially: In March 2022, SBTi imposed a temporary validation pause for automakers, which was only lifted on March 20, 2024. With the new Land Transport Guidance, a method was introduced that enables automakers to align their largest emissions source—Scope 3 Category 11 “use phase”—with 1.5°C targets (source).

How to avoid this pitfall: Use a current and representative base year. Insufficient data is not an acceptable reason to omit emissions. Regularly review SBTi’s latest sector guidance to ensure your targets remain aligned with evolving best practices.

Weaknesses in Data Organization

In addition to methodological errors, organizational shortcomings can also cause problems. Weaknesses in data organization are one of the main reasons for failed validations. Many companies underestimate the effort involved in consistent, year-over-year data collection. SBTi requires not only a one-time target validation but also annual public progress reporting.

Bernhard Bartels warns: “Inconsistent ESG reporting makes it harder for fund managers investing in these companies and makes it difficult to make consistent decisions when assembling sustainability-oriented portfolios.”

Solution: Build solid data management from the start. Automate the collection of Scope 1, Scope 2, and Scope 3 data, and set clear responsibilities for data quality. Use user-friendly emissions calculation tools to accurately capture your current values. Train your teams on climate topics and science-based target setting. Also, create a detailed financial plan that analyzes the costs and benefits of emissions reduction measures. Continuously monitor your progress to facilitate annual reporting and transparency. The Task Force on Climate-related Financial Disclosures (TCFD) recommends integrating climate data into financial planning for better risk management (source).

Preparing for the SBTi Assessment

The road to SBTi certification begins with thorough preparation. A structured approach can be crucial to avoid delays and make the process efficient. Here’s how to analyze your data and engage relevant stakeholders.

Assessing Your Current Data

The first step is a comprehensive inventory of all greenhouse gas emissions. SBTi requires a complete balance sheet covering Scope 1, Scope 2, and Scope 3 emissions before reduction targets can be defined. This data is indispensable, as SBTi considers all emissions for its validation.

Start with a review of your business areas:

• Scope 1: Direct emissions from owned sources.
• Scope 2: Indirect emissions from purchased energy.
• Scope 3: All other upstream and downstream emissions in the value chain.

Your calculations must comply with the GHG Protocol standards. The GHG Protocol is recognized as the global standard for greenhouse gas accounting, used by over 90% of Fortune 500 companies (source).

Another key point is choosing an appropriate base year. This should be representative of your business activities and contain verifiable data for all three emissions categories. It’s important that all emissions are quantified and documented—even those that initially seem insignificant.

Focus on the key emission sources in your operations and along the value chain. Analyze which areas can be changed with reasonable effort to achieve measurable reductions. Establish standardized data collection processes to ensure comparability of emissions over the years.

For Scope 3 emissions, a maximum of 5% may be excluded, with 67% of reported emissions required to be included in the targets. For Scope 1 and 2, a combined exclusion limit of up to 5% applies (source).

Engaging Key Stakeholders

Setting science-based targets requires close collaboration across the company. Suppliers, regional stakeholders, and top management also play a key role. Especially important is cooperation between your finance teams and sustainability experts to accurately capture and report emissions.

Actively involve your suppliers in the process, as they are essential for capturing Scope 3 emissions. Likewise, top management must be fully behind the project to provide the necessary resources and support. Without this commitment, it will be difficult to mobilize other departments. Clear responsibilities and communication channels between all parties are crucial.

Local stakeholders can also provide valuable insights, especially in international supply chains. They help you better understand regional specifics and challenges. Additionally, external expertise can help you tackle complex requirements. Research from Harvard Business Review shows that companies with strong cross-functional collaboration are more likely to achieve their sustainability goals (source).

Working with Expert Consultants

SBTi requirements can be complex, which is why working with experienced consultants is often a decisive advantage. Such experts help you master the challenges of setting science-based targets.

Fiegenbaum Solutions, for example, is a specialized sustainability consultancy that supports you in SBTi preparation. With expertise in ESG strategies, life cycle analysis, and regulatory requirements, the team guides companies through the entire certification process—whether on a project basis or in long-term partnerships.

When selecting consultants, make sure they are demonstrably familiar with SBTi methods. Direct contact with a clear description of your requirements can speed up the selection process.

Consultants support not only with data collection and analysis, but also help convince top management of the importance of science-based targets. Thanks to their experience, common mistakes can be avoided and the validation process accelerated.

SBTi itself offers support through expert working groups for the further development of standards and complex technical questions. This expertise flows directly into the work of experienced consultants, ensuring you always work according to the latest requirements.

Tools and Methods for SBTi Success

The challenges described above in data management show how important specialized tools and methods are for a smooth certification process. With the right software and approaches, you can avoid delays and meet requirements efficiently. Over 90% of Fortune 500 companies rely on the GHG Protocol, highlighting the importance of standardized approaches to emissions measurement.

Carbon Accounting Software Options

Choosing the right software for emissions accounting is a key step to SBTi success. Such tools make it easier to track and calculate greenhouse gas emissions and help meet regulatory requirements.

For German companies, CSRD-compliant solutions are particularly relevant. Coolset offers comprehensive Scope 1 to Scope 3 analyses tailored to European SMEs and ensures strong CSRD compliance starting at €5,000 per year. Plan A combines technology and automation to support companies with ESG solutions and decarbonization goals.

Larger companies with more complex needs can benefit from Emitwise. As Mat Langley, Global Head of Sustainable Procurement, notes:

“The unique ability to include primary supplier data in our baseline while also supporting our suppliers in calculating their emissions.”

Emitwise pricing ranges from €42,000 to €127,000 per year. Arbor impresses with precise and automated Product Carbon Footprinting (PCF) features starting at €100, while Normative uses activity-based data to create accurate emissions reports. According to Verdantix, the global carbon management software market is projected to reach $1.4 billion by 2027, reflecting the growing demand for digital solutions (source).

When choosing software, look for user-friendliness, data quality, compatibility with your processes, and comprehensive reporting features. Solutions that validate and standardize data offer clear advantages. Expert advice can also be helpful in the decision-making process.

Integrating SBTi with Your ESG Strategy

After selecting the right tools, the next step is to integrate the collected data into your ESG strategy. Linking SBTi targets with your ESG strategy ensures consistent alignment, connecting your business goals with global climate action. Real-world examples show how this can work:

• Microsoft aims to be carbon negative by 2030, combining ESG goals with SBTi measures, such as renewable energy projects, carbon capture technologies, and Scope 3 emissions management (source).
• IKEA pursues science-based targets to become climate positive by 2030. The company works closely with suppliers and customers, improves product circularity, and invests in renewable energy (source).

For successful implementation, define ESG goals that align with your priorities and address key stakeholder concerns. Integrating relevant KPIs into board discussions, performance reviews, and decision-making processes strengthens transparency and accountability. ESG management software can also capture real-time data, analyze it, and facilitate regular progress reports.

Tracking Progress Over Time

After SBTi approval, it’s important to disclose emissions annually and monitor progress. Targets should be reviewed every five years or in the event of significant changes. By early 2025, at least 10,602 companies have committed to an SBTi-compliant target, of which 7,129 have been approved (source).

Reporting can be done through annual or sustainability reports or the CDP questionnaire. SBTi provides current best practices and identifies critical issues to measure progress in a standardized way.

An example is the 2 Sisters Food Group UK, which has committed to reducing its absolute Scope 1 and Scope 2 emissions by 42.0% by 2030 compared to 2023. At the same time, the share of renewable electricity is to be increased from 0.2% to 100.0% (source).

If targets are not met, it is advisable to revise strategies, make adjustments, and communicate challenges and actions taken transparently. As Keiko Shiga of Sony Corporation emphasizes:

“Having a science-based target helps keep us on track. It means we know what we need to do in the short and medium term to meet the longer-term vision. By being part of the global initiative we know we are part of a bigger movement.”

Continuous monitoring forms the foundation for strategic adjustments and long-term success.

Conclusion

SBTi certification forms the foundation for a future-oriented corporate strategy. 79% of executives state that enhanced brand reputation is one of the main benefits of SBTi commitment. The structured approach shows that successful certification requires a methodical approach, suitable tools, and consistent monitoring (source).

Main Benefits of SBTi Certification

The benefits of SBTi certification go far beyond climate protection and create tangible business value. Companies with a clear purpose grow on average three times faster than their competitors and achieve higher employee and customer satisfaction (source).

A key advantage is regulatory security. Science-based targets protect companies from new regulations and provide a clear roadmap for a climate-friendly future. The 1.5°C-aligned benchmarks of SBTi support both internal alignment and reporting.

Financial benefits also play a major role. These include long-term cost savings, improved access to green financing, and increased attractiveness to investors through a focus on ESG criteria. Companies using carbon credits reduce their emissions twice as fast and are 1.8 times more likely to make further annual progress (source).

Competitive advantages arise through innovation and efficiency. Companies with SBTs are often pioneers in new developments and more resilient to challenges. They win investor trust and strengthen their position through increased competitiveness.

Stakeholder relationships also benefit significantly. Improved partnerships with suppliers and customers, enhanced brand reputation, and better ESG ratings create a solid foundation for long-term success. Customers who increasingly value sustainability reward commitment to climate action.

These benefits are especially evident when companies take a well-thought-out and carefully prepared approach—a key factor for sustainable success.

The Importance of Good Preparation

Thorough preparation is the key to long-term success. The detailed feedback and support from SBTi’s technical experts during the validation process highlight the importance of a professional approach.

A structured approach starts with selecting the right base year and using SBTi resources. Companies should choose the most ambitious decarbonization scenarios to achieve early emissions reductions and lower cumulative emissions.

Expert support is essential for complex requirements. Involving different departments in the target-setting process and regularly updating knowledge on best practices are crucial to success.

Additionally, continuous improvement is required. This includes annual reviews and a comprehensive revision every five years or in the event of significant changes. As SBTi emphasizes:

“Science-based target setting makes business sense – it future-proofs growth, saves money, provides resilience against regulation, boosts investor confidence, spurs innovation and competitiveness.” (source)

With at least 10,602 committed companies and 7,129 approved targets by early 2025, it’s clear: Companies that proceed methodically and seek expert advice are best positioned to succeed in the science-based climate targets community.

FAQs

What steps are required to obtain SBTi certification, and how long does the process usually take?

The SBTi certification process consists of several steps: registration, development of climate targets, submission for review, validation by SBTi, and finally, official certification. The process typically takes several months up to a year, depending on company size and data complexity. Companies with robust data management and thorough preparation can accelerate this timeline. According to SBTi, the average validation time is 6-9 months (source).

What common mistakes occur when capturing Scope 3 emissions, and how can companies avoid them?

Common Mistakes in Capturing Scope 3 Emissions

When capturing Scope 3 emissions, common issues can arise that affect the accuracy and reliability of the data. These include incomplete or faulty datasets, lack of alignment with suppliers, and the use of inaccurate or non-standardized methods. Such weaknesses often result in emissions being double-counted or completely overlooked. According to CDP, only 41% of companies report supplier-specific Scope 3 data, which can lead to significant underestimation of total emissions (source).

How can these mistakes be avoided?

To overcome these challenges, you can follow these approaches:

• Attention to data quality: Regularly check whether the data collected is complete and accurate. Only reliable information enables sound decisions.
• Use of proven standards: Use established reporting standards such as the GHG Protocol to ensure consistent and traceable data collection.
• Close collaboration with suppliers: Transparent communication with your suppliers is crucial to obtain reliable data throughout the supply chain. The SBTi Supplier Engagement Guidance offers actionable steps for improving supplier data (source).

With a clear strategy and well-thought-out processes, you can avoid common mistakes and make Scope 3 emissions collection more efficient. This lays the foundation for a sustainable and credible climate balance.

How can companies ensure their emissions targets meet SBTi requirements while remaining achievable?

How Companies Can Set Ambitious and Achievable Emissions Targets

To ensure your emissions targets are both ambitious and realistic, you should align them with science-based data and the requirements of the Paris Agreement. This means defining clear reduction pathways that are achievable and reviewing them regularly to stay on track. The SBTi Target Validation Protocol provides detailed criteria for setting and assessing targets (source).

Requirements for SBTi Validation

Successful validation by the Science Based Targets initiative (SBTi) requires your targets to be clear, measurable, and time-bound. Regular progress checks are essential. This way, you can adjust your strategies if conditions change or additional measures become necessary.

Transparency Builds Trust

Open and transparent communication about your targets and progress is crucial. It strengthens the trust of your stakeholders and partners and shows that you are genuinely committed to climate action. By presenting your actions transparently, you can further strengthen your credibility and secure long-term support. According to the Edelman Trust Barometer, 88% of institutional investors say that companies that prioritize transparency on climate targets are more attractive investment opportunities (source).