Hello, this is GLEC, a company specializing in carbon emission measurement for the logistics and transportation industry.
If you're running a business in 2025, you've probably heard about SBTi. But what exactly is it, and why are over 11,000 companies worldwide rushing to get certified? Today, I'll break down everything you need to know about Science-Based Targets initiative (SBTi) in just 5 minutes.
Let's dive into why this isn't just another sustainability buzzword, but a game-changer for modern business.
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What Is SBTi? The Simple Definition You Need
SBTi stands for Science-Based Targets initiative, a global body that validates whether corporate greenhouse gas reduction targets are scientifically credible and aligned with climate science.
Founded in 2015 by CDP, UN Global Compact, World Resources Institute (WRI), and World Wide Fund for Nature (WWF), SBTi transforms vague corporate promises into measurable, science-backed commitments.
Think of it this way: Instead of companies randomly declaring "we'll reduce carbon," SBTi ensures their targets actually contribute to limiting global warming to 1.5°C above pre-industrial levels.
The numbers speak for themselves:
- 11,000+ companies currently participating globally
- 8,600+ companies with approved science-based targets
- Market cap over $23 trillion represented
This explosive growth isn't just trendy—it's reshaping how business gets done worldwide.
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The Paris Agreement Connection: Why 1.5°C Matters
In 2015, the Paris Agreement established the goal to limit global temperature rise to well below 2°C, preferably to 1.5°C. But why does half a degree matter so much?
According to IPCC reports, the difference is staggering:
At 2°C warming:
- 99% of coral reefs disappear
- Arctic sea ice melts completely every 10 years
- 10 million more people at risk from sea level rise
At 1.5°C warming:
- 70-90% of coral reefs survive
- Arctic sea ice melts completely every 100 years
- Significantly fewer climate refugees
This 0.5°C difference literally determines the fate of millions of lives and entire ecosystems.
SBTi translates this global goal into corporate action through the "Carbon Budget" concept—the total amount of carbon humanity can emit while staying within 1.5°C warming. This budget is then allocated fairly among companies based on their sector and size.
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The 3 Core Requirements Every Company Must Meet
1. Near-term Targets (5-10 years)
Minimum requirement: 4.2% annual emissions reduction (aligned with 1.5°C pathway)
Companies must cover:
- Scope 1 (direct emissions): Mandatory
- Scope 2 (purchased energy): Mandatory
- Scope 3 (value chain): Required if over 40% of total emissions
2. Long-term Net-Zero Targets (by 2050)
The ambitious goal: 90% absolute emission reduction across all scopes
What about the remaining 10%? These residual emissions must be permanently removed from the atmosphere through carbon removal technologies or nature-based solutions.
3. Enhanced Scope 3 Requirements (NEW in 2025)
Starting 2025, SBTi significantly strengthened Scope 3 requirements:
- Must cover 67% minimum of total Scope 3 emissions
- Supplier engagement targets increasingly mandatory
- Regular progress reporting every 3 years (previously 5)
This means companies can no longer ignore their supply chain emissions—the elephant in the room for most businesses.
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Real Companies, Real Results: Success Stories That Inspire
Microsoft's Carbon Negative Ambition
Microsoft didn't just commit to carbon neutrality—they're going carbon negative by 2030. This means removing more carbon than they emit, including historical emissions since their founding in 1975.
How they're doing it:
- 100% renewable energy for all operations
- $1 billion climate innovation fund
- Supplier carbon reduction requirements
Unilever's Value Chain Transformation
Unilever committed to 42% emission reduction by 2030 across their entire value chain. From raw materials to product disposal, they're tracking and reducing carbon at every step.
Results so far:
- 20% reduction in product carbon footprint (2015-2020)
- Increased brand trust and consumer loyalty
- Reduced regulatory risk exposure
Asian Companies Leading the Charge
The fastest growth in SBTi adoption? Asia, with 127% increase in 2022:
- Japan: Highest number of companies setting targets globally
- China: 194% growth in validated targets
- South Korea: Major conglomerates like Samsung and LG Energy Solution on board
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5 Business Benefits You Can't Ignore
Why are companies racing to set science-based targets? The benefits are tangible and immediate:
1. Investment Attraction ESG investors managing $50+ trillion globally prioritize SBTi-validated companies. It's become the gold standard for credible climate action.
2. Regulatory Preparedness With EU's Carbon Border Adjustment Mechanism (CBAM) starting 2026, SBTi-aligned companies face simplified compliance and reduced costs.
3. Supply Chain Access Major corporations increasingly require suppliers to have science-based targets. No SBTi = no contract.
4. Innovation Catalyst Clear targets drive innovation. Companies report breakthrough efficiency improvements and new revenue streams from green products.
5. Brand Differentiation Consumers increasingly choose brands with credible climate action. SBTi provides third-party validation that resonates with conscious consumers.
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Your Next Steps: How to Get Started
Ready to join the 11,000+ companies taking science-based climate action? Here's your roadmap:
Step 1: Commit Submit a commitment letter to SBTi (you have 24 months to develop targets)
Step 2: Develop Calculate your baseline emissions and set targets following SBTi criteria
Step 3: Submit Send targets for validation (typical review: 30-60 days)
Step 4: Communicate Announce validated targets publicly
Step 5: Disclose Report progress annually through CDP or annual reports
Pro tip: Start with good data. Perfect data isn't required—you can improve measurement while progressing toward targets.
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The Bottom Line: SBTi Is Non-Negotiable
Climate change isn't tomorrow's problem—it's today's business reality. In 2025, SBTi has evolved from "nice to have" to "must have" for any company serious about:
- Maintaining competitiveness
- Accessing global supply chains
- Attracting investment
- Building resilience
For companies in export-dependent economies like South Korea, SBTi is your passport to global markets and insurance against climate risk.
The question isn't whether to set science-based targets, but how quickly you can start.
Remember: "The best time to plant a tree was 20 years ago. The second best time is now."
Don't wait for perfect conditions. Start your SBTi journey today, and position your company as a climate leader, not a laggard.
In our next post, we'll explore why the logistics industry specifically cannot afford to ignore SBTi. The implications might surprise you.
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For carbon emission consultation and inquiries, please visit the GLEC website.
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