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Two-minute brief

SBTi target criteria explained: video brief

A two-minute brief on the criteria that SBTi targets, and the inventory beneath them, must meet.

  • Two-minute brief
  • 2 min

Key takeaways

  • No more than 5 per cent of combined scope 1 and 2 emissions may be excluded.
  • The base year can be no earlier than 2015.
  • Scope 3 targets are required where scope 3 is significant.
  • Net-zero targets require net zero no later than 2050.
  • Version 2.0 becomes mandatory for new submissions from 1 February 2028.

Criteria, not clauses

The SBTi has no clauses and no management system to certify; it sets criteria that targets, and the inventory beneath them, must meet. This short film walks through the criteria of the Corporate Net-Zero Standard currently open for submissions, and the direction of Version 2.0.

The inventory comes first: a scope 1, 2 and 3 inventory for the base year, with no more than 5 per cent of combined scope 1 and 2 emissions left out of the inventory or target boundary, and a base year no earlier than 2015. In practice the organisational boundary and consolidation approach are written down, every scope 3 category is screened, and each estimate or exclusion is documented with its reason.

Near-term, scope 3 and net-zero targets

Near-term targets for scope 1 and 2 emissions must be consistent with the decarbonisation pace the criteria set. Scope 3 targets are required where scope 3 emissions are a significant share of the total, covering the categories the criteria specify. A net-zero target adds long-term reductions across all scopes and net zero no later than 2050. Targets are then validated by SBTi Services and published on the Target Dashboard with their wording, scopes, base year and target year, and companies report progress against them.

Corporate Net-Zero Standard V1.3.1 is used for submissions today. Version 2.0, released on 11 June 2026, is expected to open for submissions in the first quarter of 2027; until 31 January 2028 companies may submit under either version, and V2.0 becomes mandatory for new submissions from 1 February 2028. The criteria apply to companies of any size, with an SME route for smaller companies and separate standards for banks, investors and insurers. There is no certificate; the targets are validated, not the organisation.

A company with a published commitment has 24 months to submit its targets; if it misses the deadline, the commitment is shown as removed on the Target Dashboard.

SBTi at a glance

Purpose
Greenhouse gas reduction targets across scopes 1, 2 and 3, checked against the SBTi's criteria for the pace of decarbonisation climate science calls for and, for a net-zero target, net zero no later than 2050
Relevant to
Companies of any size asked for validated targets by customers, investors or lenders; smaller companies through the SME route; banks, investors and insurers under the SBTi's financial-institution standards
Edition
Corporate Net-Zero Standard V1.3.1 for submissions today; Version 2.0, released 11 June 2026, expected to open for submissions in Q1 2027 and mandatory for new submissions from 1 February 2028
Certification
None. SBTi Services validates the targets against the SBTi criteria and the SBTi publishes them on its Target Dashboard; the organisation itself is not certified
Sterling's role
Gap analysis, the base-year inventory and scope 3 screen, target modelling, the decision pack, submission and validator queries, then annual progress reporting under Sustain™
Cost and timing
Total investment for an SBTi target programme depends on the current maturity of your processes, the scope, locations and number of employees. The process typically takes 4 to 9 months

SBTi: the complete guide →

SBTi: questions people ask

Does the SBTi certify companies?

No. The SBTi develops the standards, criteria and methods; SBTi Services, its distinct validation entity, checks a company's targets against them, and targets that conform are validated and published on the Target Dashboard. What is validated is the target, not the organisation, its inventory or its management system, so "SBTi certified" is not an accurate description. Companies with validated targets may use SBTi branding, such as the logo, only as the SBTi's communications guidance allows, in content that clearly refers to the target.

What is the difference between near-term and long-term targets?

Under Version 1.3.1, near-term targets have a target year five to ten years after submission: scope 1 and 2 consistent with 1.5°C and, where scope 3 is 40 per cent or more of total emissions, scope 3 targets covering at least 67 per cent of it, consistent with well-below 2°C. Long-term targets bring scope 1, 2 and 3 emissions to zero or a residual level no later than 2050, cover at least 90 per cent of scope 3, and leave only residual emissions to be counterbalanced by permanent carbon removal. Version 2.0 asks for two or more near-term targets, requires scope 3 targets of Category A companies only and makes an overarching net-zero target optional.

Can a small or medium-sized company set science-based targets?

Yes. Companies that meet the SBTi's SME eligibility criteria, which include scope 1 and location-based scope 2 emissions below 10,000 tCO2e alongside thresholds on employees, turnover and total assets, can use the SME validation route. It offers predefined target options, including absolute scope 1 and 2 reduction targets to be achieved by 2030. Version 2.0 adds accommodations for small and medium-sized enterprises and for companies in lower-income countries. We confirm eligibility against the criteria in force before any work is priced.

What happens if we commit and do not submit in time?

A company with a published commitment has 24 months to submit its targets for validation. If it misses that deadline, the Target Dashboard shows the commitment as removed, and the status changes to validated targets once targets are successfully validated. Commitments are optional, so a company can also submit targets without committing first.

Should we set targets under Version 1.3.1 or wait for Version 2.0?

It depends on your deadline, your size and your data. V1.3.1 stays open until 31 January 2028; V2.0 submissions are expected to open in Q1 2027 and become mandatory from 1 February 2028. Under V2.0 a Category A company also needs scope 3 targets, a disclosed transition plan and assured base-year data, which takes planning. We model both routes against your timeline before you choose.

More SBTi questions and answers →

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