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SBTi Net-Zero Standard Guide

This document provides guidance for companies on setting net-zero targets aligned with the Science Based Targets initiative's (SBTi) Net-Zero Standard. It outlines the initial steps companies should take to determine if they are eligible and provides information on setting near-term and long-term science-based targets. The document also summarizes sector-specific requirements and questions companies should consider before validating their net-zero targets.

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Jenny Komatsu
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0% found this document useful (0 votes)
40 views14 pages

SBTi Net-Zero Standard Guide

This document provides guidance for companies on setting net-zero targets aligned with the Science Based Targets initiative's (SBTi) Net-Zero Standard. It outlines the initial steps companies should take to determine if they are eligible and provides information on setting near-term and long-term science-based targets. The document also summarizes sector-specific requirements and questions companies should consider before validating their net-zero targets.

Uploaded by

Jenny Komatsu
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

GETTING STARTED GUIDE

FOR THE SBTI NET-ZERO


STANDARD

Getting Started Guide for the SBTi’s Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets /science-based-targets info@[Link]


Version Release date Purpose Updates on earlier version

1.0 15/07/2021 Road test -

Clarification on 5–10-year timeframe for near-term


1.1 23/07/2021 Road test SBTs, timeline updates, minor updates to spelling
and grammar, minor updates to Appendix III.

Public Updated to remove references to the road test.


2.0 20/09/2021
consultation Renamed to “Getting Started”.

Net-Zero Inclusion of “Getting Ready for Net-Zero


3.0 26/10/2021 Standard Validation”. Updates to scope 3 boundary criteria.
launch General clarity and design updates.

Updates related to the FLAG sector, ICT sector,


Updates after
sector pathway release dates, terminology for
3.1 1/4/2022 Standard
methodologies and removal of any references to
launch
Voluntary Ambition Updates.

Getting Started Guide for the SBTi’s Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets /science-based-targets info@[Link]


ABOUT THE GETTING STARTED GUIDE
This document is designed as a simple, easy-to-use guide for companies to support
companies in setting net-zero targets aligned to the SBTi’s Net-Zero Standard.

It is complementary to both the SBTi Corporate Net-Zero Standard document and the Net-Zero
Standard Criteria. Companies should also refer to the SBTi’s Corporate Manual and the SBTi
criteria when setting targets.

The table below outlines the sections contained within this document.

Page # Title Description


Getting Started with This section walks companies through organisational level checks to
1 the SBTi’s Net-Zero understand whether they are eligible to set net-zero targets under the
Standard (1/2) SBTi’s Net-Zero Standard.

Setting near-term This section describes key differences between near-term science-
based target criteria in the Net-Zero Standard in comparison to
2 science-based targets previous versions of SBTi criteria to understand whether companies
for net-zero meet the new requirements.
Getting Started with
This section explains the first steps towards getting ready to model
3 the SBTi’s Net-Zero long-term science-based targets.
Standard (2/2)
Setting long-term
This section describes the methods that companies can use to set
4 science-based targets long-term targets and how they can be applied.
for net-zero
Key criteria for near The section summarizes the target boundary, time frame, method
5 and long-term science- eligibility and minimum ambition requirements for near-term and long-
based targets term science-based targets.

Planned 1.5°C This section describes the status of sector-specific pathways that the
SBTi has, or is in the process of developing, that companies can use
6 pathways for science- to set both near and long-term science-based targets aligned to
based targets 1.5°C.

Sector-specific
This table, split into three pages, describes the SBTi’s sector-specific
requirements for
7-9 requirements related to the use of target-setting methodologies and
setting long-term minimum ambition levels.
science-based targets

Getting ready for net- This section is aimed at companies that already have validated near-
term science-based targets. These questions are essential checks
10 zero target validation that companies must go through before beginning the validation
(1/3) process.

Getting ready for net- This section is aimed at companies that already have validated near-
term science-based targets. It describes conditions that are important
11 zero target validation for companies to review to understand if they have triggered a target
(2/3) recalculation.
This section is aimed at companies that already have validated near-
Getting ready for net- term science-based targets. Companies may not be required to
12 zero target validation update their targets based on the answers to these questions but
(3/3) doing so will help align with best practice and the latest climate
science.

Getting Started Guide for the SBTi’s Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets /science-based-targets info@[Link]


GETTING STARTED W ITH THE SBTI'S NET-ZERO STANDARD

NGO, ot her public W hat t ype of organizat ion


Financial Inst it ut ion
organizat ion, etc. are you?

The SBTi does not currently assess The SBTi Guidance for Financial
Company or Inst it ut ions outlines requirements for
targets for cities, local governments,
st ate-ow ned enterprise near-term SBT-setting for both scope
public sector institutions, educational
1+2 and scope 3 near-term targets for
institutions, or non-profit organizations. financed emissions. The SBTi?s Financial
However, we still encourage these Sector project is developing separate
stakeholders to use the science-based Are you a parent company Net-Zero resources for financial
target setting methods detailed in the or a subsidiary? institutions.
SBTi Corporate Manual and the Net-Zero
Subsidiary
St andard document . Cities can register
Parent company
interest in setting targets through the
Science Based Target s Net work (SBTN). The SBTi recommends that companies
submit targets at the parent or group level.
Are you in t he Oil & Gas Parent companies must include the
Yes emissions of all subsidiaries in their target
sector?
submission in accordance with boundary
criteria detailed in the SBT Criteria and
No Recommendat ions and t he Net-Zero
St andard Criteria. See the Target
Validat ion Protocol for more details.
Companies in the Oil & Gas sector must
wait for upcoming guidance in order to
submit targets for validation. See the How many employees are
Fewer t han 500 employees
SBTi Oil & Gas webpage for the latest in your organizat ion?
information.

More t han 500 employees

The SBTi defines a non-subsidiary,


Have you set near-term independent company with fewer than
No 500 employees as a Small and
science-based t arget s?
Medium-Sized Enterprise (SME). SMEs
must submit commitments for both
Yes near-term and net-zero targets through
a simplified, dedicated route using the
The first step in committing to net-zero is
SME Commitment Letter. See our SME
setting a near-term SBT. To meet the
requirements of the Net-Zero Standard, Do you w ish to set t arget s FAQs for more information.
near-term SBTs must be 1.5°C-aligned aligned w it h t he Net-Zero
and the target year must be 5-10 years St andard?
from submission. Detailed info on all
near-term SBT criteria can be found in the
SBT Criteria and Recommendat ions (see Yes
Net-Zero St andard Criteria for additional
requirements). See our SBT
How-to-guide for the step-by-step Do your near-term SBTs Check the next page to see if your
process. align w it h t he Net-Zero Not sure current near-term SBTs are aligned with
St andard criteria? criteria (following the Net-Zero
Standard). If you wish to commit to
net-zero, and your current near-term
Yes SBT does not meet the Net-Zero criteria,
complete t he SBTi Near-Term Target
Update Form .

See next page

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets / science-based-targets info@[Link] 1


SETTING NEAR-TERM SCIENCE-BASED TARGETS FOR NET-ZERO
To align w it h t he Net-Zero St andard, your company's current near-term science-based t arget s must meet t he near-term criteria in
t he Net-Zero St andard and current SBTi Criteria. These criteria are more ambit ious t han t he previous SBTi Criteria (version 4.2) to
ensure t hat t he right act ions are t aken in t he short-term to limit w arming to 1.5°C and reach net-zero by 2050. These criteria w ill apply
to all companies set t ing science-based t arget s, regardless of w het her t hey aim to align w it h t he Net-Zero St andard, from July 2022.

Version 4.2 of SBTi criteria

Near-term SBT criteria w it hin t he Net-Zero St andard

Well-below 2°C minimum 1.5°C minimum

Any company (except those in the power and


In V4.2 of SBTi criteria, companies could use FLAG sectors) can use the cross-sector
W hat
the Absolute Contraction Approach (ACA) to absolute reduction method to set 1.5°C
temperat ure
set well-below 2°C targets. targets.
goal should your
company align Companies in the following sectors could Only companies in the power sector may
it s scope 1 & 2 use sector-specific intensity convergence currently use sector-specific intensity
t arget s to? methods to set well-below 2°C targets: convergence methods to set 1.5°C targets.
power, transport, buildings, iron & steel, See the Planned 1.5°C Pathways (page 6) for
cement, aluminum, pulp & paper. more details.

5-10 years from submission


5-15 years from submission
W hat is t he
t arget t ime Near-term SBTs must have a 5-10 year time
In V4.2 of SBTi criteria, companies could set
frame from submission. Companies t hat
frame for your SBTs with a 5-15 year time frame from the
already have validated SBTs are not
near-term SBTs? submission.
required to update t arget s to meet t he
reduced t ime frame requirement s.

W hat 2°C minimum Well-below 2°C minimum


temperat ure
goal should your In V4.2 of SBTi criteria, companies could set Near-term SBT scope 3 targets must be
company align scope 3 targets consistent with the level of aligned with well- below 2°C or more
it s scope 3 decarbonization required to keep global ambitious scenarios. Supplier engagement
t arget s to? temperature increase to 2°C. targets are eligible.

For more det ails see:

1. Foundations of SBT Setting


2. SBTi Corporate Manual
3. SBTi Criteria
4. Target Validation Protocol
5. SBTi Tool
6. SDA paper
7. Sector specific guidance

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets / science-based-targets info@[Link] 2


GETTING STARTED W ITH THE SBTI NET-ZERO STANDARD
After ensuring near-term science-based t arget s align w it h t he Net-Zero St andard requirement s, companies should t hen
focus on t he next steps tow ards set t ing long-term science-based t arget s. This sect ion explains t he first steps tow ards
get t ing ready to model your long-term science-based t arget s.

Have you completed a full


No and recent GHG
inventory/ screening? All relevant scope 3 sources must be
calculated before submitting targets to
A company-wide scope 1 and 2 emissions
inventory must be completed as defined by
the SBTi. See Table 6.1 (page 61) of the
the GHG Protocol Corporate St andard and GHG Protocol Corporate Value Chain
the GHG Protocol Scope 2 Guidance . (Scope 3) Account ing and Report ing
Companies must complete a scope 3 Yes St andard for criteria to identify relevant
Not sure scope 3 activities.
screening for all relevant categories
considering the minimum boundary of
each category per the GHG Protocol
Corporate Value Chain (Scope 3)
Account ing and Report ing St andard. Have you included all
Companies may use the GHG Protocol relevant scope 3 act ivit ies?
Scope 3 Guidance, Scope 3 Evaluator, and
CDP Supply Chain Program as resources. Offsets should be reported separately in
Offset s the annual GHG inventory. Offsets do not
count towards emission reductions.
Yes
Avoided emissions must be excluded from
Avoided
inventory and do not count towards
emissions
emissions reductions.

Does your inventory include Direct emissions from bioenergy must be


any of t he follow ing? reported separately from inventory. See
Bioenergy the SBTi Criteria and the Target
Validat ion Protocol for details.
Not sure
Optional scope 3 emissions, e.g. indirect
No
FLAG emissions are emissions from use-phase emissions in "Use of Sold
Forestry, Land and Agriculture. Emissions Products, must be reported separately
from FLAG follow a separate emissions from emissions in the minimum boundary
mitigation pathway that includes both Opt ional of each scope 3 category in the Target
reductions and removals. scope 3 Submission Form . See Table 5.4 (page 35)
Does your company have emissions of the GHG Protocol Corporate Value
Because of this, FLAG emissions must be significant FLAG emissions? Chain (Scope 3) Account ing and
disaggregated within the GHG inventory to Report ing St andard for an explanation of
set separate FLAG-specific SBTs. See optional emissions for each scope 3
GHG Protocol Carbon Removals and Land category.
Sector Initiative and FLAG project Yes
webpages for more information.

See next page for more


informat ion on how to model
long-term SBTs.

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets / science-based-targets info@[Link] 3


SETTING LONG-TERM NET-ZERO SCIENCE-BASED TARGETS
Companies must set long-term science-based t arget s t hat align to 1.5°C for a year no later t han 2050 as part of t heir net-zero
commit ment . These t arget s cover a minimum of 95% of scope 1 & 2 emissions, and 90% of scope 3 emissions. See t he next page
for more informat ion on criteria. This page describes t he met hods t hat companies can use to set long-term t arget s and how t hey
can be applied.

W hat t ype of company W hich emission scopes


Met hod name More about t he met hod
can use it ? does it apply to?

Absolute emissions are reduced


by an amount that is, at
minimum, consistent with the
cross-sector pathway. Also
All companies, except for
Cross-sector absolute referred to as ?absolute
companies in power or FLAG
contraction?.
All scopes
reduct ion sectors.
The minimum reduction is
calculated as an overall amount
(e.g., 90% overall for the
cross-sector pathway).

Absolute emissions are reduced


Food, Land and Agriculture
Sector-specific by an amount that is, at
(FLAG), Iron & Steel, Cement and All scopes
minimum, consistent with a
absolute reduct ion sector-specific pathway. Buildings (services & residential).

Recommended for companies in


Physical emissions intensity targets heavy-emitting sectors, or companies
are calculated based on all with a significant proportion of
companies in a sector converging to emissions attributed to All scopes
a sector-specific emissions intensity heavy-emitting sectors. See box for
by 2050 or sooner (2040 for the planned commodity pathways and
Sector-specific power sector). Also referred to as pg. 6 for other sector pathways.
intensit y convergence ?physical intensity convergence?or
Planned commodit y pat hw ays
?SDA?
For long-term targets, the target
emissions intensity is equal to the - Beef - Pork - Soya
sector's emissions intensity in 2050 - Chicken - Palm oil - Wood fiber
(2040 for the power sector). - Dairy - Rice
- Corn - W heat

Companies actively procure at


least 80% renewable electricity by
Renew able elect ricit y 2025 and 100% renewable All companies Scope 2
electricity by 2030.

Economic emissions intensity


is reduced by an amount that
Scope 3 economic is, at minimum, consistent
with limiting warming to 1.5?C. All companies Scope 3
intensit y reduct ion The minimum reduction is
calculated as an overall 97%
reduction.

Physical emissions intensity is


reduced by an amount that is,
Scope 3 physical at minimum, consistent with
1.5?C. The minimum reduction
All companies Scope 3
intensit y reduct ion
is calculated as an overall 97%
reduction.

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | October 2021

[Link] @ScienceTargets / science-based-targets info@[Link] 4


KEY CRITERIA FOR NEAR- AND LONG-TERM SCIENCE-BASED TARGETS
The t able below is a summary of t he t arget boundary, t ime frame, met hod eligibilit y and minimum ambit ion requirement s for near- and long-term SBTs. For more det ail
on absolute act ivit y pat hw ays and physical intensit y convergence pat hw ays see t he Net-Zero St andard document .

Scope 1 and 2 Scope 3

Near-term
Near-term If scope 3 >40% of total emissions: boundary to cover min. 67% of
Target boundary 95% coverage of scopes 1 + 2
science-based
SBTs scope 3.
t arget s
Target year 5 ? 10 years from date of submission 5 ? 10 years from date of submission

Scope 3
Sector-specific Renewable Cross-sector Sector-specific Supplier or physical and
Absolute
Method intensity electricity absolute intensity customer economic
reduction
Met hod convergence (scope 2 only) reduction convergence engagement intensity
eligibilit y reduction
and
minimum
ambit ion - Depends on - 80% RE by - Depends on - e.g. 80% of
- 4.2% linear - 7%
Eligibility and sector and 2025 sector and suppliers by
annual - 2.5% LAR year-on-year
min. ambition company - 100% RE by company emissions by
reduction (LAR) (both options)
inputs 2030 inputs (SDA) 2025

Long-term
Long-term Target boundary 95% coverage of scopes 1 + 2 90% coverage of scope 3
and net-zero
science-based Target year 2050 or sooner (2040 for the power sector) 2050 or sooner
t arget s Scope 3
Sector-specific Renewable Cross-sector Sector-specific Supplier or physical and
Absolute
Method intensity electricity absolute intensity customer economic
reduction
convergence (scope 2 only) reduction convergence engagement intensity
reduction
Met hod
eligibilit y
and - 90% reduction - 90% reduction
minimum (cross-sector (cross-sector
- Sector / - Methods are
ambit ion pathway) - Sector / pathway)
Eligibility and commodity not eligible - 97% reduction
- 72% reduction commodity - 100% RE - 72% reduction
min. ambition pathways for long-term (both options)
for FLAG pathways vary for FLAG
vary SBTs
- Other sector - Other sector
pathways vary pathways vary

Not eligible 1.5°C ambition Well-below 2°C ambition

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | April 2022
[Link] @ScienceTargets / science-based-targets info@[Link] 5
PLANNED 1.5°C PATHWAYS FOR SCIENCE-BASED TARGETS
The SBTi has developed various 1.5°C pat hways for science-based targets in high-emitting sectors for near and long-term targets. Additional 1.5°C
pathways are due to be published, or are still in the scoping phase.

PATHWAY GUIDANCE
Sector-specific pathway eligible for Documents to support target setting
IPCC SECTOR SBT SECTOR process
NEAR-TERM SBTs LONG-TERM SBTs

Timber / wood fiber June 2022 June 2022

AFOLU Land and agricult ure June 2022 June 2022

Agricult ural commodit ies June 2022 June 2022

BUILDINGS Buildings Q3 2022 Q3 2023

Iron and steel April 2023 April 2023

INDUSTRY Cement June 2022 June 2022

Chemicals August 2023 August 2023 August 2023

Road and rail t ransport

TRANSPORT Marit ime t ransport Q2 2022 Q2 2022 Q2 2022

Aviat ion Q3 2022 Q3 2022 Q3 2022

OTHER ENERGY Oil and gas

ELECTRICITY AND
Power generat ion
HEAT

Apparel and foot wear


OTHER SECTORS
ICT

1.5°C sector pathway(s) available 1.5°C sector pathway(s) planned Sector uses cross-sector pathway

Guidance complete Guidance release date known Guidance planned, no timeline available

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets / science-based-targets info@[Link] 6


SECTOR-SPECIFIC REQUIREMENTS FOR SETTING LONG-TERM SCIENCE-BASED TARGETS
Sector-specific guidance and methods for long-term SBTs are currently available for many sectors. All new sector-specific guidance that becomes available will be uploaded to
the sector development page on the SBTi website. The SBTi has sector-specific requirements related to the use of target-setting methodologies and minimum ambition levels.

Sector Eligible met hods Guidance/ Notes

Optional guidance is available for companies in the apparel


Apparel and foot wear See ?All other sectors?.
and footwear sector.

Real Estate Investment Trusts (REITs) wishing to set targets


must specify if they are a mortgage-based REIT or an
equity-based REIT. Equity REITs must pursue the regular
W hen setting long-term SBTs, companies in these sectors are
target validation route for companies. Mortgage REITs must
recommended to set absolute or intensity targets using the residential
Buildings instead utilize the Financial Institutions guidance for setting
buildings pathway, service buildings pathway, or cross-sector pathway
SBTs.
(absolute targets only).
The SBTi is developing guidance for companies and sectors
of the built environment.

W hen setting long-term SBTs, companies are recommended to set


The SBTi is developing guidance for companies in the
Cement absolute or intensity targets using the cement pathway, or cross-sector
cement sector.
pathway (absolute targets only).

The SBTi is developing guidance for companies in the


Chemicals See ?All other sectors?.
chemicals sector.

The initiative defines a financial institution as one engaging in


investment activities as part of its core functions. These
include the following:
[Link] management/ asset owners
The SBTi is developing a Net-Zero Standard for financial institutions and [Link] and commercial banking activities
Financial Inst it ut ions
cannot validate targets for this sector before the guidance is completed. [Link] companies (when functioning asset managers)
[Link] real estate investment trusts (REITs)
Additionally, if at least 5% of a company?s revenue comes
from activities such as those described above, they would be
considered a financial institution.

Getting Started Guide for the SBTi's Net-Zero Standard


Version 3.1 | April 2022
[Link] @ScienceTargets / science-based-targets info@[Link] 7
SECTOR-SPECIFIC REQUIREMENTS FOR SETTING LONG-TERM SCIENCE-BASED TARGETS

Sector Eligible met hods Guidance/ Notes


Companies with significant FLAG emissions will be required to set FLAG
targets separate from their SBTs that cover all non-FLAG emissions.
FLAG targets must use the FLAG-sector pathway (absolute targets) or a
Forest , Land-use & Agricult ure commodity pathway (intensity targets). The FLAG sector guidance is expected to be finalized in
(FLAG) Commodity pathways will be available for beef, dairy, pork, chicken, June 2022.
roundwood, rice, soy, palm oil, maize, and wheat. Forestry and timber
companies will be required to use the intensity convergence method for
roundwood.

Companies must set targets for scope 3 category 11,


In addition to guidance for the primary sector, scope 3 targets must be
Fossil Fuel Sale/ irrespective of the share of these emissions compared to
set on scope 3 category 11 ?use of sold products?emissions using
Transmission/ Dist ribut ion the total scope 1, 2 and 3 emissions of the company.
absolute contraction.
Separate scope 3 targets may need to be set in this case.

Informat ion and


Optional guidance is available for companies in the ICT
Communicat ion Technology See ?All other sectors?.
sector.
Providers

W hen setting long-term SBTs, companies in these sectors are


The SBTi is developing guidance for companies in the steel
Iron and Steel recommended to set absolute or intensity targets using the iron and
sector.
steel pathway, or cross-sector pathway (absolute targets only).

Companies in this sector include ? but are not limited to ?


integrated oil and gas companies, integrated gas
The SBTi is developing a new methodology for companies in the oil and
companies, exploration and production pure players,
gas sector to set science-based targets. Currently, the SBTi is unable to
Oil and Gas refining and marketing pure players, oil products
accept commitments or validate targets for companies in the oil and gas
distributors, gas distributors and retailers and traditional oil
or fossil fuels sectors.
and gas service companies. Please see the Oil and Gas
sector page on our website for more information.

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | April 2022
[Link] @ScienceTargets / science-based-targets info@[Link] 8
GETTING READY FOR NET-ZERO TARGET VALIDATION
This sect ion is aimed at companies t hat already have validated near-term science-based t arget s t hat would like to submit
long-term t arget s as part of a net-zero commit ment . The follow ing quest ions are essent ial checks t hat companies must go
t hrough before beginning t he validat ion process.

QUESTION RESPONSE ACTION

Yes, my scope 1 & 2 targets align with 1.5?C


and my scope 3 targets align with at least Go to question 4.
1. Do your current near-term well-below 2?C
science-based t arget s meet t he
Net-Zero St andard?s ambit ion
requirement s? No, my scope 1 & 2 targets do not align with
1.5?C and / or my scope 3 targets do not Go to next question.
align with at least well-below 2?C

Yes Go to next question.

2. Did you company commit to t he


Business Ambit ion for 1.5?C Please resubmit your near-term targets for
validation using this form to align with 1.5?C in
campaign via Opt ion 2? No scope 1 & 2, and at least well-below 2?C in
scope 3.

Yes Go to next question.

3. Do your validated t arget s align


w it h at least well-below 2?C? Please resubmit your near-term targets for
No validation using this form to align with at least
well-below 2?C.

Yes, and we?ve found that our targets need Please resubmit your near-term targets for
to be recalculated and revalidated. validation using this form .

4. If your t arget w as validated more Yes, and we are confident our targets are
consistent with best practice and the latest Go to next question.
t han five years ago, have you climate science.
reviewed your t arget s in
compliance w it h t he SBTi?s Please review your targets to check they are
?mandatory t arget recalculat ion" No consistent with best practice and the latest
climate science.
criteria?
N/ A, my target was validated less than 5 Go to next question.
years ago.

5. Do you w ish to make any ot her Yes


amendment s to your current
near-term SBTs? E.g. addit ion of Go to next page.
t arget s, change in base year,
amend base year inventory. No

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets / science-based-targets info@[Link] 10


GETTING READY FOR NET-ZERO TARGET VALIDATION
This sect ion is aimed at companies t hat already have validated near-term science-based t arget s t hat would like to submit
long-term t arget s as part of a net-zero commit ment . The follow ing condit ions are import ant for companies to review to
underst and if t hey have t riggered a t arget recalculat ion.

Since submitting your near-term SBTs to the SBTi,


have any of the following occurred:
RESPONSE

YES
The base year or t arget year of your t arget has changed
NO

Significant changes to your base year inventory. The SBTi uses a 5% materialit y
t hreshold across scopes 1 to 3 to determine significance (N.B. t his excludes organic YES
grow t h).

This could have occurred due to significant organizational changes from mergers, NO
acquisitions, or divestitures, or for other reasons such as improved data availability.

YES
Scope 3 emissions became 40% or more of overall scope 1, 2, and 3 emissions.
NO

Exclusions in t he inventory or t arget boundary have changed significant ly and/ or


YES
exceeded allow able exclusion limit s (more t han 5% of scope 1 and 2 emissions
and/ or more t han 33% of scope 3 emissions). NO

Significant changes in company st ruct ure and act ivit ies t hat would affect t he
YES
company?s t arget boundary or ambit ion (e.g. acquisit ions, divest it ures, mergers,
insourcing or out sourcing, shift s in product or service offerings). NO

Significant changes in dat a used to calculate t he t arget s such as grow t h


YES
project ions (e.g. t he discovery of significant errors or several cumulat ive errors t hat
are collect ively significant ). NO

YES
Ot her changes to project ions/ assumpt ions used w it h science-based t arget set t ing
met hods.
NO

If you answered YES to ANY of t he above, you have t riggered a t arget recalculat ion, and we ask
t hat you recalculate and resubmit your near-term science-based t arget s for revalidat ion using
t his form.*

*Please note t hat companies are eligible to resubmit near-term t arget s as part of a net-zero package submission.

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets / science-based-targets info@[Link] 11


GETTING READY FOR NET-ZERO TARGET VALIDATION
This sect ion is aimed at companies t hat already have validated near-term science-based t arget s t hat would like to submit
long-term t arget s as part of a net-zero commit ment . Although companies may not be required to update their targets based on
the answers to these questions, doing so will help align with best practice and the latest climate science. Considering these
questions will help prepare for the validation process and ensure it runs as smoothly as possible.

QUESTION RESPONSE ACTION

Are your t arget s st ill represent at ive of Yes Go to next question.


your business model and realist ic given
your current mit igat ion st rategy? No Go to next question.

If the base year of your near-term target is before


Yes 2015, you may want to update the base year of your
Do your near-term SBTs use a base year targets to align with the new net-zero criteria that
targets use a base year of 2015 or later.
before 2015?

No Go to next question.

Would you like to update t he Companies should assess whether they are on
Yes track to meet rapidly approaching targets. If you
t imeframe of any of your near-term would like to update the timeframe of your targets,
t arget s? In part icular, are you use the target resubmission process.
approaching your near-term t arget
date? No Go to next question.

Companies in this situation may wish to set


near-term scope 3 targets as part of their net-zero
Yes commitment to complement their long-term
Companies do not have to set targets.
near-term scope 3 t arget s if scope 3
emissions represent less t han 40% of Yes, but we've already set scope 3 targets. Go to next question.
tot al emissions. Does t his sit uat ion
apply to your company? N/ A, my company's scope 3 emissions
represent more than 40% of total emissions Go to next question.
so we are required to have a scope 3 target.

Please check that your targets still meet the


Did your company model t arget s using ambition requirements of the current SBTi Tool. If
Yes they do not meet updated requirements, we
intensit y met hods (in part icular using encourage you to consider resubmitting your
t he Sectoral Decarbonizat ion targets.
Approach)?
No Go to next question.

Yes, and there have been developments in We encourage you to update and resubmit your
my sector that impact my targets. targets to meet updated sector requirements.

Yes, and there haven't been any Congratulations! You've completed all the necessary
Have you reviewed any sector-specific developments in my sector that impact my checks on your validated near-term SBTs to prepare
guidance to check for applicable targets. you for net-zero target validation.
updates?

The SBTi encourages you to review our sector


No guidance page and the SBTi criteria for
sector-specific requirements before proceeding.

Getting Started Guide for the SBTi's Net-Zero Standard Version 3.1 | April 2022

[Link] @ScienceTargets / science-based-targets info@[Link] 12

Getting Started Guide for the SBTi’s Net-Zero Standard 
 Version 3.1 | April 2022 
sciencebasedtargets.org 
@ScienceTarg
Version 3.1 | April 2022 
 
 
 
 
 
info@sciencebasedtargets.org 
sciencebasedtargets.org 
@ScienceTargets 
/science-based-ta
Version 3.1 | April 2022 
 
 
 
 
 
info@sciencebasedtargets.org 
sciencebasedtargets.org 
@ScienceTargets 
/science-based-ta
Fewer than 500 employees
Yes
The SBTi recommends that companies 
submit targets at the parent or group level. 
Parent compani
SETTING NEAR-TERM SCIENCE-BASED TARGETS FOR NET-ZERO
sciencebasedtargets.org
@ScienceTargets
/ science-based-targets
Getting
Have you completed a full 
and recent GHG 
inventory/ screening?
No
A company-wide scope 1 and 2 emissions 
inventory must be
SETTING LONG-TERM NET-ZERO SCIENCE-BASED TARGETS
sciencebasedtargets.org
@ScienceTargets
/ science-based-targets
Getting Star
Scope 1 and 2
Scope 3
Near-term 
SBTs
Target boundary
95% coverage of scopes 1 + 2
If scope 3 >40% of total emissions: bounda
PLANNED 1.5°C PATHWAYS FOR SCIENCE-BASED TARGETS
The SBTi has developed various 1.5°C pathways for science-based targets in h
SECTOR-SPECIFIC REQUIREMENTS FOR SETTING LONG-TERM SCIENCE-BASED TARGETS
sciencebasedtargets.org
@ScienceTargets
/ science-ba

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