How to choose SBTi targets and how to set short-term and long-term targets and analysis of each target type 

1. Introduction to Near-term and Long-term Targets 

The SBTi (Science Based Targets Initiative) requires companies to set science-based near-term and long-term targets to ensure that their emission reduction pathways are consistent with the global 1.5 °C climate target. This guide synthesizes user-provided operational documentation with the latest official SBTi standards (Corporate Near-Term Criteria v5.3 and Net-Zero Corporate Manual v1.0 published in September 2025)[1][2]. The article introduces the coverage and reduction rates of short-term and long-term targets, the calculation of absolute contraction, and the steps for setting supply chain/customer engagement goals. 

2. What is an absolute emission reduction target 

• The "Absolute Absolute Reduction Target", also known as the Cross-sector Absolute Reduction Method, requires companies to reduce their total emissions at a fixed rate between the base year and the target year, regardless of changes in production. Scope 1 + 2: An average annual decrease of 4.2%, equivalent to a total reduction of 42% between 2020 ~ 2030.

•  Scope 3: If the absolute reduction method is adopted, it is recommended to reduce the reduction by an average of 2.5% per year, with a cumulative reduction of 25% over ten years. 

Another method is the SDA Sectoral Decarbonization Approach, which is suitable for specific high-emitting industries (electricity, cement, steel, construction, etc.) and allocates carbon reduction rates according to industry paths. The SBTi recommends that companies prioritize absolute reductions as they are transparent, traceable, and consistent with the 1.5°C pathway. 

3. Based on the company's industry characteristics adoption guidelines and shrinkage method Based on the industry characteristics of xx company and the project documents provided, this guide explains how to use the absolute contraction method to set science-based carbon reduction targets and comply with the requirements of the latest SBTi standard (Criteria V5.2). The content covers the immediate targets of Scope 1+2 and Scope 3, as well as steps for setting supply chain and customer engagement targets, data computation methodology, boundary coverage principles, document preparation and SBTi form completion guidelines. Each section will detail the how-to and form-filling rules to ensure the objectives are actionable and meet verification standards. 

Chapter 1    Introduction to Target Types 

1. SBTi Target Classification Science-Based Targets (SBTs) 

are divided into two levels: Near-term SBTs and Long-term/Net-zero SBTs, which represent the medium-term commitments and ultimate net-zero visions of corporate carbon reduction actions, respectively. Near-term targets focus on specific emissions reduction commitments over a period of 5 to 10 years, typically targeting 2030 and aligning with the scenario of limiting global warming to 1.5°C. The base year must not be earlier than 2015, and the target year must be 5–10 years from the year of submission. The target scope must cover at least 95% of Scope 1 & 2 emissions; If a company's Scope 3 emissions account for more than 40% of its total emissions, it will need to set additional Scope 3 targets and ensure that at least 67% of its total Scope 3 emissions are covered. At this stage, multiple methods such as absolute reduction approach (ARA), emission intensity approach (ARA), supplier/customer engagement target (Supplier/Customer engagement target), and renewable energy percentage target can be adopted. The SBTi proposes an Absolute contraction approach to correspond to cross-sectoral decarbonization pathways, ensuring a Scope 1+2 absolute emission reduction rate of about 42% within 10 years, while Scope 3 is based on a "well below 2°C" pathway, typically around 25%. 

Long-term/net-zero targets are long-term commitments for companies to achieve net-zero emissions by 2050 or earlier, and must be extended beyond near-term targets. The target year is no later than 2050, and the base year is in principle the same as the short-term target. The scope must cover at least 95% of Scope 1 and 2 emissions and at least 90% (95% in practice) of Scope 3 emissions. At this stage, only absolute emission reduction methods or sector-specific pathways can be adopted, and supplier/customer engagement targets are no longer accepted. Companies need to achieve an absolute reduction of ≥ 90%, and the remaining ≤10% of unavoidable emissions must be neutralized through permanent carbon removals to declare net zero. Overall, near-term targets are a necessary prerequisite for achieving long-term net-zero goals. The near-term goal is to establish short-term emission reduction initiatives and supply chain cooperation mechanisms to ensure that the corporate path meets the 1.5°C scientific benchmark. The long-term goal emphasizes the "end state" of zero net final emissions, requiring higher coverage and permanent neutralization mechanisms. Together, they form a complete corporate decarbonization roadmap based on the SBTi standard: from a "10-year action target" to "ultimate net zero by 2050".  

2. Consideration Benchmarks and Paths for Selecting 

• Target Types: If the company is in a non-specific industry, the cross-departmental "Absolute Contraction" method can be used; If it is a heavy emission industry such as steel and cement, it must be set according to the SBTi departmental path. Long-term targets recommend a 90% absolute emission reduction path across cross-sectors, while long-term targets in specific areas such as FLAG (Forests, Land, and Agriculture) follow criteria such as 72% emission reduction or 97% intensity reduction [4]. 

• Scope 3 emissions share: If Scope 3 emissions account for more than 40% of total emissions, Scope 3 targets must be set in addition to Scope 1 and 2 targets[1]. 

• Data capabilities and influence: If the company has access to actual emissions data from the supply chain and has influence, it can choose absolute emission reduction targets. If the data quality is insufficient and the supply chain is complex, supplier/customer engagement goals can be used to encourage partners to set their own SBTs first, and then gradually collect more accurate data [3].  

Chapter 2   Scope 1 and Scope 2 Immediate Goals 

Scope 1 and Scope 2 near-term targets (absolute emission reduction of 42%) 

Scope 1 and Scope 2 relate to greenhouse gases generated by the company's own operations and electricity consumption. According to the SBTi standard, the near-term targets of Scope 1+2 must meet the minimum requirements of the 1.5°C decarbonization pathway[1]. This typically represents a reduction in absolute emissions of about 42% over 10 years (e.g., 42% by 2030 from a 2020 baseline)[2]. The following describes the target start year and target year setting logic, the data and calculation of the absolute value contraction method, and the key points for filling out the SBTi form. 

I. Logical base year selection for target start year (base year) and target year setting: 

1.SBTi requires that the base year (target start year) of the near-term target should not be earlier than 2015[3]. The base year should be representative, reflecting the normal emission levels of the enterprise, and avoid selecting unusually low-emission years. Scope 1 and Scope 2 must use the same base year[4]. It is recommended to choose the latest inventory year as the base year to ensure that the data is novel and that subsequent emission reductions are forward-looking. If the base year is more than 2 years away from the target year, the emission inventory of the last 1-2 years needs to be provided as a reference to prove that the target still has room for forward-looking reduction [5]. In addition, the target must not have been achieved or exceeded at the time of submission, and the SBTi does not accept "achieved" targets as near-term targets[6] (targets should be forward-looking rather than completed). 

2.Target Year Selection: The coverage period for the near-term target must be within 5 to 10 years from the submission year[3]. For example, if the target is submitted in 2025, the target year should be between 2029 and 2035; If it is submitted in the first half of the year, it can be counted as one year in the current year, and if it is submitted in the second half of the year, it will be counted as 5-10 years from the following year[7] (this is a general rule and can be adjusted depending on the actual time of submission of the company). The SBTi recommends setting 2030 as the near-term target year[8]. If a company chooses 2030 as its target year, even if it is less than 5 years or more than 10 years from the year of submission, the SBTi allows it to be considered as an exception to meet the timeline requirements[8] (2030 is the global climate target year, and this year is selected to show that it is in line with international progress). Therefore, if xx company submits a target in 2025, it can set 2030 as the target year to align with the 1.5°C path and comply with regulatory grace limits. Coordination of 

3.Targets for the Same Period: It is recommended that Scope 1+2 and Scope 3 adopt the same base year and target year to facilitate consistency and clear communication during the target period[9]. The SBTi does not mandate a Scope 3 base year, but it strongly recommends alignment with Scope 1+2[9]. If the financial year does not coincide with the calendar year, the target statement must be represented in the fiscal year and ensure that both the base year and the target year are presented as the fiscal year. In summary, xx companies should select an appropriate base year (e.g., 2020 or 2022) and corresponding target years (e.g., 2030) to meet the 5-10-year range and try to align with 2030, so that the target is both challenging and in line with the SBTi timeframe. 

II. Data requirements and calculation methods of absolute value contraction method 

1.Data requirements: To adopt absolute reduction targets, it is necessary to accurately quantify Scope 1+2 emissions in the base year. Company xx should compile data on all Scope 1 direct emissions (e.g., fuel combustion, process emissions) and Scope 2 indirect emissions (electricity and heat purchases) data in the base year. Ensure that at least 95% of Scope 1+2 emissions are covered within the company's organizational boundaries[10]; The SBTi allows up to about 5% of emissions to be excluded from the list (e.g. very small sources), but incomplete emissions exceeding 5% will not meet the requirements [10]. Therefore, all relevant emission sources should be included as much as possible in accordance with the principle of GHG inventory integrity. If there are minor emissions that are not included, their proportions must be explained in the submitted information to ensure that the exclusion portion of each area does not exceed the 5% threshold [10]. In addition, it is necessary to distinguish between Scope 2 market benchmark method and regional grid method emissions; Market method data is available when targeting is set, but regional grid laws should still be reported for reference. When preparing this data, ensure that you use the latest greenhouse gas emission factors and accounting methods to improve data accuracy. 

2.Calculating the emission reduction range: The absolute value reduction method is to set a fixed percentage of absolute emission reduction targets. According to the 1.5°C pathway, Scope 1+2 emissions must be reduced at an average annual rate of about 4.2% [11]. This equates to a cumulative reduction of at least 42% over a decade [12] (for example, a global cross-sectoral pathway emissions reduction of at least 42% from 2020 to 2030 [12]). Therefore, xx has set a Scope 1+2 emission reduction of 42% in the near term, which is in line with the minimum requirement [2]. For example, if the Scope 1+2 emissions in the base year (e.g. 2020) are 10 tons, the target emissions in 2030 need to be reduced to less than 5.8 tons (42% reduction). For actual calculations, you can use the following formulas: target emissions reductions = base year emissions × percentage reduction, target year expected emissions = base year emissions × (1 – percentage reduction). It also ensures that the target annual emissions do not exceed this threshold to meet the ambitious requirements of the 1.5°C scenario [1]. It is important to note that the SBTi does not allow Scope 1+2 emissions to increase during the target period, and must show a downward trend from the most recent year [6]. 

3.Goal Path: Since the goal of absolute emission reduction of 42% is adopted, corresponding carbon reduction measures need to be formulated to achieve it. For example, improving energy efficiency, implementing energy-saving retrofits to reduce Scope 1 fuel use, or reducing Scope 2 electricity emissions through the procurement of renewable energy. In particular, for Scope 2, consider setting a renewable electricity procurement sub-target - SBTi-approved enterprises can use the proportion of renewable energy procurement as an alternative to the Scope 2 target, as long as they reach the threshold of 80% renewable electricity by 2025 and 100% by 2030[13]. This aligns with the 1.5°C pathway and can serve as a supplementary commitment (if xx company already uses a large amount of green electricity, it must be maintained and gradually increased to 100% [13]). Under the absolute contraction framework, renewable electricity measures will directly help reduce Scope 2 emissions, thus helping to achieve the 42% reduction target. Companies should prepare a detailed carbon reduction action plan that outlines annual or phased emission reduction pathways to ensure a 42% reduction in the target year. 

III. SBTi Form Filling Instructions (Table 3.1.2 Scope 1+2 Targets) When preparing the SBTi target submission form, the Scope 1+2 near-term targets usually need to be filled in a series of key fields (this guide assumes that Table 3.1.2 in the form corresponds to this): base year, target year, covered emissions scope, base year emissions, emission reduction percentage/target value, etc. Here are the key points to fill in: Goal Type and Scope Description: 

1.Select the target type as "Absolute reduction target" in the form, applicable to Scope 1+2. The target needs to be declared to cover all of the company's Scope 1 and Scope 2 emissions (the recommended text description confirms 100% of the emissions covered by Scope 1+2, or indicates if there is a very small number of exclusions, but must be < 5% [10]). For example, the description could state: "Greenhouse gas emissions covering all operating facilities and electricity of XX Company." 

2.Base year and emissions: Fill in the corresponding fields the base year (e.g., 2020) and the total emissions of Scope 1+2 for that year (e.g., expressed in metric tons of_CO2e). These data should be consistent with the company's greenhouse gas inventory report. The form may require a distinction between Scope 1 and Scope 2 base year emissions, if any, separately and ensure that both have the same base year [4]. It also provides a description of the method for calculating emissions (e.g., referencing GHG Protocol standards). 

3.Target Year and Emission Reduction Target: Fill in the target year (e.g., 2030) and the percentage of emission reductions relative to the base year. If a 42% emission reduction is adopted according to this target, "42%" will be filled. According to SBTi regulations, percentages should be marked to one decimal place (e.g., 42.0%), unless they are 0 after the decimal point, which can be written as 42%[14]. If the base year and target year are the same for both Scope 1+2 and Scope 3, you can use "within the same time period" in the Scope 3 target statement to avoid duplicate years. There may be an automatic calculation check function in the form to ensure that the value filled in meets the ambition of at least 1.5°C (the form or verifier will compare the emission reduction ratio with the length of the period). Target wording: SBTi requires companies to provide target wording for public release[15]. 

4.The standard format for the Scope 1+2 absolute target is: "[Company Name] commits to reduce Scope 1+2 absolute greenhouse gas emissions by [XX]% from [Base Year] to [Target Year]." Example text expression that xx company can fill in: "xx company has committed to reducing absolute Scope 1+2 emissions by 42% by 2030 from the 2020 base year." [2]。 Note that the percentage in the target statement should be consistent with the numerical value of the form, and the base year and target year should be clearly marked. 

5.Supplementary information: In the notes or supplementary explanation area of the form, it is recommended to explain the emission reduction methodology. For example: "The emission reduction pathway is based on the SBTi absolute contraction method, corresponding to the 1.5°C scenario[1]." If the company adopts renewable energy targets as part of its strategy, it can also be mentioned here (e.g., "80% renewable electricity by 2025 and 100% by 2030[13]" as an important measure to reduce Scope 2 emissions. In addition, confirm that relevant statements are checked in the form, such as guaranteeing that no carbon purchase offsets are included in the target achievement, and agree to regularly report progress (SBTi requires companies to disclose emissions annually during the target period to track progress[16][17]). 

After completing the above fields, be sure to check them yourself. For example, check whether the base year emissions are filled in the correct units, emission reduction percentages, and whether the duration of the base year and target year is reasonable (if there are only 8 years from the base year to the target year but 42% is filled, the actual minimum requirement is exceeded, which is higher ambition and feasible but needs to be ensured). Table 3.1.2 After filling in the form, the setting of the immediate targets for Scope 1+2 is completed, and the focus will be on the targets related to Scope 3. 

4. Scope 3 Near-term target setting (absolute emission reduction of 25%) 

Scope 3 covers indirect emissions from the upstream and downstream of the company's value chain, which is usually the bulk of the total emissions. According to the SBTi standard, if Scope 3 emissions account for more than 40% of the company's total emissions (Scope 1+2+3), Scope 3 targets must be set [18]. The target ambition needs to be at least consistent with the well-below 2°C scenario [19]. Generally speaking, this means that about 25% of the absolute Scope 3 emissions reduction in the past decade can be achieved (taking 2020-2030 as an example, corresponding to the SBTi's recommended Scope 3 emission reduction of 25% [2]). The following describes the selection of emissions categories covered by Scope 3 targets, the methodology for estimating and inventorizing future emissions, and the target coverage calculation and submission format (including tables and timeline recommendations). 

(1) Applicable emission class selection principles 

• Identify the main Scope 3 categories: XX company should first take stock of all relevant Scope 3 emission sources (Categories 1 to 15). Depending on the characteristics of the industry, the focus categories of Scope 3 usually have a clear direction. For example, in manufacturing enterprises, Category 1 (purchased goods and services) is often the largest source of upstream emissions, while Category 11 (use of sold products) is often the largest source of downstream emissions[20] (especially when products consume energy or fuel during the use stage, such as automobiles and electronics). If xx company's products produce significant emissions during the use phase, Category 11 should be given priority; If the supply chain produces high emissions from raw materials/components, Category 1 will be the main source. In addition, upstream transportation and distribution (category 4), product disposal (category 12), etc. may also be important categories depending on the business model. In principle, the largest categories should be prioritized for inclusion in the target boundary to cover most of the Scope 3 emissions[20]. 

• Coverage threshold: The SBTi mandates that Scope 3 near-term targets must collectively cover at least 67% of Scope 3 emissions[18]. Total Scope 3 emissions here refer to all Scope 3 emissions that should be included in the GHG Protocol standard, including those that have been reported and those that have not been inventoried (excluded)[18]. Therefore, when choosing target categories, consider the sum of emissions from all categories as the population, not just the quantified part of the company. For example, if xx company currently only inventories Category 1, 2, and 11 emissions, totaling 60 units, but estimates that there are 40 units of emissions from other unchecked categories, making the total Scope 3 total amount actually 100, then the target should be based on 100 when covering 67%, i.e. at least 67 units of emissions[21]. 67% cannot be calculated based only on the 60 that has been invented, otherwise only 40 units will be obtained, which will underestimate the required coverage [21]. In other words, any unaccounted emissions must also be counted in the 67% coverage population[22]. This requires companies to estimate emissions from each Scope 3 category as much as possible before setting targets to understand the overall emissions landscape. 

• Category scope in line with GHG standards: Each Scope 3 category selected for inclusion must be fully included in its emissions in accordance with the minimum threshold of the GHG Protocol[23]. You cannot unilaterally select some of the emissions in a category to set a target. For example, if you include Category 1 in your target, you should cover all the emissions associated with the company's purchased goods and services, rather than just selecting some of these suppliers or products. This is to prevent reducing the target coverage ratio by narrowing the scope definition. For certain categories that are determined to be inapplicable or extremely small, their estimated emissions should also be explained and recorded in the inventory (even if they are 0), to show that the principle of comprehensiveness is followed[24]. It can only be considered negligible if a category is indeed unrelated to the business of the enterprise or the proportion of emissions is less than 5% of the total amount; However, these excluded emissions still need to be included in the total to account for the 67% coverage rate [24]. Overall, the principle of selecting target coverage categories is to focus on major emissions categories and meet GHG inventory integrity requirements while ensuring that ≥67% of emissions coverage is achieved.  

(2) Base year inventory, future emission estimates and assumptions 

• Base year inventory: Similar to Scope 1+2, it is necessary to select a base year for Scope 3 and inventory all relevant categories of emissions for that year. It is recommended that the base year be the same as Scope 1+2 (e.g. 2020) to unify the target period [25]. Company xx should collect activity data for each material area 3 category and calculate emissions in the base year. For example, Category 1 can be calculated based on the purchase amount or purchase volume combined with the emission factor for that year; Category 11 can be estimated based on product sales, product energy efficiency, and emission factors during the use stage for the year. For categories that have not yet been quantified, reasonable emissions estimates are required: emissions can be estimated by referring to industry average data, input-output methods, analogy methods, etc., even if the value is uncertain, an order of magnitude estimation is required, as this will affect the total emissions and coverage calculations [22]. Be sure to indicate the inventory method and data source for each category for review by SBTi validation.

•  Future Emissions Estimates: While the SBTi's near-expected reduction targets primarily look at the base year compared to the target year, companies should consider business growth and emissions trends when setting targets. If emissions are expected to rise beyond the base year without intervention in anticipation of future business scale, then in order to achieve an absolute 25% reduction in the target year, larger unit reduction measures will actually need to be introduced to offset the growth. It is recommended that xx company conduct an emissions scenario analysis: assuming that without additional carbon reduction actions, Scope 3 emissions may increase by X% with turnover every year in the future; It is then assumed that through various carbon reduction measures, the emission intensity can be reduced by Y% year by year. Combining these factors to deduce to the target year, it is verified that emissions can be reduced by at least 25% compared to the base year. If it is found that the current planned measures alone are not enough to meet the target, it is necessary to adjust the target or strengthen the carbon reduction plan. This estimate does not need to be detailed in the SBTi submission, but it helps companies confirm the feasibility of their targets and communicate carbon reduction pressures internally.

•  Assumption Explanation and Uncertainty: In the target submission, it is recommended to clarify the key assumptions made when setting the Scope 3 target. For example, when calculating emissions during product use stages, it is assumed that the service life and use intensity remain unchanged; suppliers' future volumes and supply structure are assumed to be similar to the base year; the introduction of certain innovative technologies will reduce product electricity consumption by 20% after 2025, etc. These assumptions influence future emissions pathways and also support the rationality of the 25% reduction target. Especially when Scope 3 emissions account for a high proportion, SBTi expects companies to have some discussions on carbon reduction pathways. There may be open fields in the form for companies to describe their Scope 3 reduction strategies or key assumptions, which can be briefly explained here. For example, "it is expected that through energy efficiency improvements and material substitution, emissions per unit of product will be reduced by 30% by 2030, thereby driving Scope 3 Category 11 emissions reductions[2]." Or: "Assuming the carbon intensity of the supplier array decreases by an average of 2% per year with the entire industry, the company will actively screen low-carbon suppliers." These instructions help validators understand the foundation of the goal and reflect the company's consideration of future trends. 

• Completeness and exclusions: If there are certain Scope 3 categories that are deemed unrelated to the company (e.g., the company does not have investment category 15, or does not have employee commuting category 7, etc.), it should still be listed and marked as "not applicable" to prove that it has been considered. If there is a very small source of emissions that is difficult to quantify, its scale needs to be declared (preferably an upper limit). Clause C5 in SBTi Criteria V5.2 restricts that emissions excluded from the Scope 3 list must not exceed 5% of total Scope 3 emissions[10]. Therefore, Company xx must confirm that the sum of any unaccounted portions is less than 5% of the total. In the additional notes to the submission form, the exclusions and percentages of each category can be listed (e.g., "Category 8 leased asset emissions are estimated to account for <1% of Scope 3 and therefore not included in the target") to demonstrate compliance with the SBTi completeness requirements [24]. This information is crucial during target validation, and the verifier checks whether the Scope 3 coverage rate is above 67% in both the base year and the most recent year, and whether the exclusions are within the permissible range [26]. 

(3) Target coverage calculation and data submission format (including tables and timeline recommendations) 

• Coverage calculation: After selecting the Scope 3 categories for inclusion in the target based on the above principles, it is necessary to calculate the proportion of their combined emissions to the total Scope 3 emissions to confirm whether they ≥ 67%. When calculating, the denominator should be the total emissions of Scope 3 in the base year (including all reported and unreported categories)[18][22]; The numerator is the sum of emissions included in the target category. For example, if the total Scope 3 emissions in the base year are estimated to be 100,000 tons of_CO2e, and the combined emissions of the included categories (such as 1, 4, 11) are 80,000 tons, the coverage rate = 80,000/100,000 = 80%, which is higher than the 67% threshold and meets the requirements. If it does not reach 67%, more categories must be added to the target range or the quantification of unchecked categories must be expanded, so that the denominator decreases or the numerator rises to a proportional level. Keep in mind that SBTi 67% does not consider optional emissions and only targets mandatory Scope 3 sources [22]. Therefore, only the emission sources required by the GHG Protocol are included in the current coverage calculation. If the company additionally covers some emission reduction measures beyond the minimum threshold, it is encouraging, but this does not affect the 67% decision. 

• Submission Form Format: In the SBTi target submission form, there is usually a table for companies to list their emissions and target coverage for each Scope 3 category (e.g. "Table 9" or similar section of the form)[27]. It is recommended to list all 15 Scope 3 categories in order, even if some of them are not applicable to the company or have zero emissions. "Table 3.1.2" may be for Scope 1+2 targets, while information related to Scope 3 targets may be in "Table 3.2.x" or "Table 9", but the key is to clearly present: for each category, fill in the base year emissions (tonnes of_CO2e), whether the category is included in the emission reduction target, and if any, explain why. Categories that are included in the target can be highlighted or annotated. For example:  

The above table shows that the total emissions of Scope 3 in the base year are 100,000 tonnes, and the total Categories 1 and 11 included in the target are 90,000 tonnes, with a coverage rate of 90% (over 67%). The remaining uncovered categories such as Category 4 and 6 account for 10% (including exclusions). This presentation allows validators to see at a glance: which categories are within the target range, which are not, and what percentage of exclusions are included. In particular, under the SBTi verification process, companies are required to provide such a list for verification in their submission to ensure that all exclusions are included in the calculation of coverage [27]. 

3. Target value and Scope 3 emission reduction information: In the target submission form, for the set Scope 3 reduction target, you need to fill in fields such as emission reduction range, base year, and target year, similar to the Scope 1+2 target. xx company's Scope 3 target adopts an absolute emission reduction of 25%, so fill in the corresponding fields in the form with a 25% reduction, as well as a base year (e.g. 2020) and a target year (e.g. 2030). Similarly, if the Scope 3 base year is the same as Scope 1+2 and the target year is the same, you can use the phrase "in the same period" in the target statement (the form may already have a template statement option). It is important to note that the form requires that the scope 3 target statement specify the name of the category covered, unless almost all (≥95%) of the scope 3 emissions are covered. Therefore, xx's target statement should clearly mention categories such as "procurement of goods and services, use of sold products", rather than generally stating "all Scope 3 emissions" (because it does not cover more than 95%). In an example target statement, it can be phrased like this: "By 2030, xx company has committed to reducing absolute emissions related to Scope 3 (procurement of goods and services and use of sold products) by 25% compared to 2020." [2]。 This clearly indicates the categories covered and the extent of reductions. 

4. Timeline and Milestones: While the SBTi does not require formulaic medium-term milestones for near-term targets, companies should establish internal timelines to track Scope 3 reduction progress to ensure they are achieved. It is recommended to further subdivide the target period of 2020~2030, such as setting stage goals every two or three years. For example, we aim to reduce emissions by 10% compared to the base year in 2025, 20% in 2027, and 25% in 2030. Such a timeline helps businesses identify progress deviations early and adjust their strategies. xx companies can publish these medium-term goals in their internal carbon reduction plans or sustainability reports to enhance transparency and accountability. The following table is a simplified timeline illustration:  

This table clearly depicts a roadmap for carbon reduction from baseline to target year. While the SBTi does not verify achievements in the interim year, with these internal control milestones, companies can determine whether to reduce as planned against actual emissions and node targets each year. If progress is behind in a given year, there is still time to step up measures to catch up with the end goal. xx companies should use this timeline as an internal management tool and review the gap from the 25% reduction target when reporting emissions to the SBTi annually. In short, quantitative phase targets and timelines can improve the operability of target setting, ensuring that Scope 3 emissions reductions are not just slogans but actual progress management. 

Submission Format Notes: In the form or attached document, list the methodology and results of the Scope 3 target coverage calculation. These include: total Scope 3 emissions in the base year, emissions included in the target and their percentages, and confirmation of compliance with the 67% coverage requirement [28]. If companies use financial expenditure as an alternative measure (e.g., targeting the top 67% of suppliers in terms of purchase value), they need to supplement the emissions coverage estimate in the submission [29]. SBTi may query this information during verification to confirm that C6 clause is met. Additionally, ensure that all input data units and values are consistent (e.g., tonnes of CO₂e) to avoid errors in the form automatic calculation. Finally, it is recommended to ask a second person to cross-check the entire form to check whether there is any contradiction between the Scope 3 target and the Scope 1+2 target (if there is a reasonable explanation for the inconsistency between the Scope 3 target year or the base year), to improve the rigor of the submission and the first pass rate.  

(4) Scope 3 near-term targets – supplier and customer engagement targets (covering 67%) 

In addition to direct absolute emission reduction targets, the SBTi allows companies to adopt engagement targets for the upstream and downstream of the value chain, i.e., to achieve carbon reduction by influencing suppliers or customers. Such targets are particularly applicable to situations where it is difficult for companies to directly reduce some of their Scope 3 emissions, such as emissions from suppliers in the production process or emissions generated by customers during the use of products. The SBTi requires that such targets cover at least 67% of the relevant Scope 3 emissions (which can be combined with the company's total Scope 3 coverage threshold)[28]. 

Here's how to define key Tier 1 suppliers/customer groups, develop a five-year engagement target plan, and format and key points for completing engagement targets in the SBTi form. Definition of Tier 1 Suppliers/Customer 

• Groups Scoping: First, it is necessary to clarify the scope 3 categories targeted by this participation target. Generally speaking, the participation goals for suppliers correspond to category 1 (procurement of goods and services) or other upstream categories (such as category 4 upstream transportation and distribution, etc.); Engagement targets for customers correspond to category 11 (use of sold products) or other downstream categories. xx companies should choose the appropriate direction according to their own value chain characteristics. For example, if the company's products have significant emissions during the use phase, then participation targets need to be set for key customers (product users); If the supply chain has a large carbon footprint, set engagement targets for suppliers. 

• Identify key targets: The target requires that the suppliers/customers affected by the target need to cover more than 67% of the relevant emissions, so it is necessary to filter out the objects with the largest contribution to emissions. The best way to do this is to sort the Scope 3 emissions corresponding to each supplier or customer, and cumulatively up to about 67% [30][29]. If direct emissions data is difficult to obtain, purchase amounts (expenses) or sales can be used as alternative indicators – usually expenditures or sales are somewhat correlated with emissions. For example, company xx can list all suppliers by annual purchase value, calculating the proportion of the top 20 suppliers in terms of purchase value and, if possible, the estimated share of emissions from the products they supply. If the top 20 suppliers account for 80% of the total procurement and their product production emissions are estimated to account for about 80% of Category 1 emissions, then these 20 suppliers can meet the coverage requirements by selecting these 20 as participation targets. 

• Emissions coverage vs. monetary coverage: The SBTi prefers to use the percentage of emissions to prove coverage, so even if you filter targets by expenditure, you should estimate the share of emissions corresponding to these objects as much as possible [29]. In the target statement, you should explain which measurement method is used. For example: "suppliers covering 67% of emissions" or "suppliers covering 75% of procurement expenditure (accounting for approximately 67% or more of emissions in this category)"[30][29]. If expenditures are used as a measure, submissions to the SBTi should be accompanied by an indication of the approximate percentage of emissions to which these expenditures correspond[29]. Taking the supplier participation target as an example, it is usually expressed as "XX% of Tier 1 suppliers (by emissions) will set SBTi targets by YYYY." Taking the customer participation target as an example, it can be expressed as "Customers who cover XX% of the company's emissions from the use of sold products will set SBTi targets before YYYY". The key is to clarify the percentage and audience range, making the target quantifiable and verifiable.

•  Example: If 90% of XX's product sales are concentrated in the top 10 major customers, then these 10 customers account for the majority of Category 11 product emissions. The company can target these 10 companies as customer participation targets, and it is expected that they will cover 67% of the total emissions used by ≥ products. Similarly, if 80% of the purchase volume is concentrated in the top 15 suppliers, the participation target is set for these 15 suppliers. Remember, no matter how many targets are selected, the proportion of emissions covered is the measure: there is no hard and fast rule on the number of objects, but the emissions covered must meet the standards. Once you've selected a list, it's important to keep relevant emissions or expenditure data for the base year as a basis for future tracking. 

Five-Year Engagement Target Promotion Plan (with Tracking and Supporting Mechanisms) 

The SBTi sets a clear time limit for participation targets: the targets must be achieved within 5 years of submission [31]. In other words, the company's commitment to achieve the participation target in year X should be no later than the year of submission +5. For example, submissions in 2025 will be completed by 2030 at the latest. Therefore, it is essential to develop a five-year action plan to advance supplier/customer engagement in stages. Here's an example of a typical five-year promotion plan: 

• Year 1: Initiation and communication. Formally write the participation target into the company's climate strategy, and inform all suppliers/customers included in the target scope through letters, meetings, etc. He emphasized that the company has committed to allowing them to set science-based carbon targets within 5 years, explaining the importance and benefits of this to both parties. At this stage, establish an internal team responsible for communicating with the target (e.g., purchasing department to suppliers, business account manager to customers). Provide educational and training resources, such as introducing SBTi's guidelines, goal setting process, etc., to help people understand how to start setting goals. 

• Years 2-3: Assistance and cooperation. Work closely with your clients to help them inventory their own emissions and initiate target setting. Workshops can be held, industry best practices are shared, and even technical support is provided (e.g., carbon accounting tools, consultant recommendations). At the same time, the target is required to publicly commit to setting science-based targets (e.g., joining the SBTi commitment list) during the biennial period. Companies can write this requirement into sustainability clauses in procurement contracts or cooperation agreements, enhancing binding. During the period, regularly (such as quarterly) to track the progress of the target, establish a progress reporting mechanism, collect information such as whether they have started internal processes, what obstacles they encounter, etc., and assist in solving them. 

• Year 4: Supervision and supervision. When there are only about two years left until the goal deadline, focus on those who have not yet set a goal. High-level communication may intervene at this time, such as a dialogue between company executives and opposing executives, emphasizing the importance of completing SBTi goals for the future of both parties' cooperation. Give deadline reminders to those who have committed but are making slow progress, making it clear that failure to meet the targets may affect future cooperation. Gather supporting documents, such as a supplier has formally submitted a notification of targets for SBTi verification, or a customer has disclosed carbon reduction targets in their sustainability reports. This evidence can be used to report overall progress to SBTi or external stakeholders in the future. 

• Year 5: Verification completion and evaluation. By the last year of the target commitment, it is expected that the vast majority (e.g., >90%) of target targets have already set and published SBTi-approved carbon reduction targets. If there are still very few unfinished ones, they should be supervised again in the middle of the year and strive to achieve all of them by the end of the year. The company aggregates the status of all objects: which have been approved by the SBTi (list and date provided) and which are in transit. This data is compiled into a report that internally evaluates the successes and missing lessons of the engagement program. If there is a failure to meet (assuming a small number of suppliers delay), analyze the reasons and truthfully disclose the non-achievement ratio and subsequent remedial measures in external communication. Overall, the fifth year will conclude: confirm that 67% of the emissions targets covered by the target have fulfilled their commitments and report the results to the SBTi to maintain the effectiveness of the company's targets. 

In the process of driving the implementation of the plan, it is also necessary to establish a tracking and supporting mechanism: 

• Progress tracking: Create a dynamic supplier/customer list and schedule. The content includes baseline data (emissions or expenditure ratio), commitments, and current progress (such as "committed, target submitted, verified", etc.). The progress sheet is updated semi-annually as a management briefing material. Red marking and notes on laggards requires high-level attention. 

• Internal incentives/constraints: Set KPIs for employees (such as purchasing managers, sales managers) who are responsible for connecting with these targets internally, and include assisting them in setting SBT goals as part of the performance evaluation. Praise teams that are progressing smoothly and provide more resource support to those who are lagging behind. If necessary, "whether the supplier has an SBT target" is used as a consideration for procurement bidding or contract renewal; "Carbon reduction cooperation for major customers" is used as part of customer relationship management. 

• Evidence and evidence collection: When a target has completed setting a science-based carbon target (officially approved by SBTi), request or download relevant supporting documents from them. For example: screenshots of company lists in SBTi's official announcements, statements from the other party's official press releases or sustainability reports, etc. These evidentiary documents should be filed for future reference. These materials can be submitted in the future if they need to demonstrate to the SBTi or other interested parties that the participation goals have been achieved. According to SBTi standards, evidence of all objects may not be required during the initial target verification, but companies should be prepared to self-certify after the five-year period to maintain the credibility of the target. 

• Regular Reporting: While the SBTi does not proactively review targets annually after approval, xx companies may voluntarily disclose progress in their annual or sustainability reports on their participation in targets. For example: "By 2027, 60% of key suppliers have set SBTi-approved targets, and we are continuing to make progress to reach our target of 67% coverage by 2028." This transparency helps the outside world understand the carbon reduction impact of the company's supply chain and gives suppliers/customers some reputational incentives (they are willing to be announced as active carbon reduction partners).  

(5) SBTi Participation Targets Form Filling and Format Suggestions (Text Expressions, Covered Emissions Description) 

1.Fill in the form: In the SBTi Targets Submission Form, the participation targets are usually listed as a separate item (alongside the Scope 1+2 emission reduction targets and Scope 3 emission reduction targets). There may be specific sections where you fill in the details of the Vendor Engagement Goal or Customer Engagement Goal, including who is covered, percentage, duration, etc. Confirm whether such goals need to be grouped in the Scope 3 Goals section of the form, or if there is a separate section (which is usually still classified as a Scope 3-related target type). 

2.Target key fields: Fill in the following elements: target type (supplier or customer), coverage percentage (%), measurement basis (by emissions or expenditure), scope 3 categories covered (e.g., procurement of goods and services, use of sold products), target years (year achieved). For example, in the form, you can fill in the relevant fields: "67% of suppliers of purchased goods and services (in terms of emissions)" and "Target year: 2028". If there are multiple engagement goals (such as one for suppliers and one for customers), fill in their respective percentages and corresponding categories separately.

 3.Goal Statement Writing: The SBTi also has template requirements for public statements for participation goals. The general form reads: "[Company Name] commits to set science-based targets by [target year] to promote [X]% of its [target] (by emissions or expenditures) covering the company's [Scope 3] emissions." [30]。 xx company can write target statements in Chinese and English accordingly. For example, in Chinese: "XX has committed to prompting at least 67% of its Tier 1 suppliers (in terms of emissions, covering the categories of purchased goods and services) to set SBTi-verified carbon reduction targets by 2028." This statement includes the required elements: percentage (67%), target (supplier), measurement method (in terms of emissions), scope 3 (procurement of goods and services), and deadline (until 2028). For customer engagement goals, similar expressions can be made, such as "... Motivate its key customers (covering more than 67% of emissions from the use of products sold..."). Note that if "expenditure" is used as a measurement, it should be clearly stated in the statement, for example, "75% of suppliers (accounting for more than 70% of emissions in this category based on procurement expenditure)...". It is also recommended to add an estimate of the percentage of expenditure to emissions in the remarks of the form to meet the requirements of SBTi certifiers for proof of coverage[29].

4. Target Time Requirements: A specific year must be filled in as the deadline for participation goals, and the year must comply with the aforementioned 5-year rule[31]. Be sure to select this goal type as "Vendor engagement" or "Customer engagement" in the form and enter the year (e.g., 2028). If your company submits targets for 2024 or 2025, it is acceptable to fill in 2030 as the target year for participation (exactly within 5 years or slightly less than 5 years). However, if it is based on corporate coordination, there is room for choice, for example, in 2028. Therefore, you can write "... will be before the end of 2028...", corresponding to the form year 2028. 

5.Audience Definition Description: In the form description or additional data, clearly define the scope of "Tier 1 Vendor" or "Primary Customer". For example: "Tier 1 supplier refers to a supplier who directly supplies products or raw materials to XX Company; This target covers the 20 largest suppliers by procurement value in 2022, collectively accounting for approximately 70% of emissions from the procured goods and services category." This explanation allows validators to understand which objects are included and why their emissions can represent at least 67% of category emissions [30]. Similarly, if the target involves customers, describe the type of customer (e.g., "Top 10 OEM customers, collectively accounting for 68% of product use emissions", etc.). In addition, it can clarify the basis for measurement, such as the supplier's emission estimation method or the accounting basis for the customer's use of emissions. These details can be placed in the "Target Boundary Description" section of the form.

6.Share of target-linked Scope 3 emissions: The SBTi will look at whether the participation target is sufficient to meet the total Scope 3 coverage threshold. If a company has both absolute and participation targets for Scope 3, the emissions covered by both can be cumulatively calculated by 67%. For example, if the Scope 3 absolute emission reduction target covers 50% of emissions and another supplier participation target covers the remaining 20%, a total of 70% has been met[28]. The form may need to indicate the coverage of each Scope 3 target and confirm that all mandatory sources have been considered. xx company should attach an overall statement to the submission, such as: "More than 67% of the company's Scope 3 emissions have passed the above emission reduction targets and participation targets, and meet the requirements of the SBTi standard" for reviewers to quickly compare. 

7.Formatting and Wording: Always use the wording template recommended by the SBTi when filling out, and do not modify key vocabulary at will. In particular, "science-based targets" must be complete and not abbreviated to avoid loss of clarity [32]. Target statements usually use the present tense verb "commits to" and do not use vague expressions such as the future perfect. The target percentage should be placed before the number (e.g., "67% of suppliers" instead of "67% of suppliers' emissions") to correspond to the English template habit. At the same time, ensure that the meaning of the Chinese and English versions is exactly the same. If the form requires English statements, it is recommended to directly quote the SBTi standard template: "[Company] commits that XX% of its suppliers by emissions, covering purchased goods and services, will have science-based targets by [year]." [30] and translated into Chinese accordingly.

 After completing the form, check again whether there is any overlap or conflict between the participation target and the Scope 3 emission reduction target. For example, don't count the same batch of emissions into the coverage of both the reduction target and the participation target (avoid double counting). Generally speaking, supplier participation targets cover upstream emissions, customer engagement targets cover downstream emissions, and Scope 3 emissions reduction targets may cover some upstream and downstream emissions, so the three should complement each other to cover up to ≥67%. Finally, ensure that all goals have a consistent presentation style, such as base year wording, target year formatting, percentage decimal places, etc., which will make the submitted document appear professional and organized. By filling out and checking according to the above guidelines, xx's supplier and customer engagement targets will have a clear operation plan and a format that complies with the latest SBTi standards, laying a good foundation for target verification and subsequent implementation.  

Chapter 3  Calculation basis for the 67% coverage of the SBTi Scope 3 reduction target 

According to the SBTi Corporate Near-Term Criteria v5.2 (March 2024), companies with Scope 3 emissions accounting for more than 40% of their total Scope 1+2+3 emissions must set Scope 3 targets with a target boundary covering at least 67% of their total Scope 3 emissions[1][2]. The term "total Scope 3 emissions" here refers to all Scope 3 emissions required by the GHG Protocol, rather than just some categories that companies inventory themselves. The SBTi standard clearly stipulates that a company's near-term target must cover at least 67% of its "total reported and unreported Scope 3 emissions"[3]. In other words, even if a company has only inventoried some Scope 3 categories, its uninventoried (excluded) emissions must be included in the total amount as the matrix of the 67% coverage rate. Mandatory Clause C6 of the SBTi Corporate Near-Term Criteria v5.2 states that companies should set one or more emission reduction targets that collectively cover at least 67% of total Scope 3 reported + excluded emissions, and the boundaries included in each category must meet the minimum requirements of the GHG Protocol[3]("cover(s) at least 67% of total reported and excluded scope 3 emissions…”[3]）。 It can be seen that the denominator of "67% coverage" should be all relevant emissions in Scope 3, rather than the sum of some categories of emissions that companies choose to inventory.

 1. The meaning of "reporting + exclusion" emissions and full inventory requirements 

SBTi Criteria Assessment Indicators v1.4 (April 2025) further clarifies the calculation method of Scope 3 coverage and the inventory obligation of companies: 67% coverage should be calculated based on the "total mandatory emissions" of the company's Scope 3, including reported emissions and excluded (unreported) emissions[4]. Any additional optional emissions (the portion that exceeds the minimum threshold of the GHG Protocol) are not included in the 67% calculation[5][6]. The guidance clearly emphasizes that "Excluded emissions must be taken into account in the total scope 3 emissions when calculating the required coverage"[7]. In other words, for Scope 3 emissions that are not included in the target boundary, although they are "excluded" in the target statement, they are still included in the denominator when calculating the coverage rate. The SBTi also requires companies to submit a complete Scope 3 emissions inventory describing the size of each category of emissions and any exclusions to verify that the target covers a sufficient percentage of total emissions[8][7]. If a company considers certain Scope 3 emissions to be non-applicable or insignificant and not quantified, it must state the estimated emissions and their percentage of the total Scope 3 amount in the submission form to ensure that these exclusions do not exceed 5% of the total emissions[9][10]. In practice, the SBTi does not accept companies not reporting certain Scope 3 emissions on the grounds of "negligible" – even if the emissions of an activity appear small, they must be quantified and included in the greenhouse gas inventory or explicitly disclosed as exclusions [11][12]. Overall, the SBTi requires companies to inventory all relevant Scope 3 emission sources in accordance with the GHG Protocol's "completeness" principle, allowing exclusions only if they are a very small part (≤5%) of the total, but still included in the coverage assessment [9][10]. 

2. Assessment of coverage in a partial category inventory scenario For the situation described in the question – companies have only inventoried some Scope 3 categories (e.g., Categories 1, 2, 3, 5, 10, 12) – the SBTi still requires that all possible total Scope 3 emissions be used as the basis for calculating the 67% coverage rate. Emissions from other categories not checked (e.g. Categories 4, 6, 7, 8, 9, 11, 13, 14, 15) cannot be ignored; These excluded category emissions must be included in the total amount when calculating the target coverage [7]. In other words, companies cannot only use the sum of their "summed calculated" categories of emissions as the population to determine whether to achieve 67% coverage. If companies focus only on the inventoried categories, they will overestimate the percentage covered by the target, which will result in non-compliance with SBTi standards. For example, suppose a company has only inventoried a subset of categories and estimates its total Scope 3 emissions to be 100 units of carbon equivalent, but the total number of categories tested is only 60 units. According to the SBTi, the company needs to set a target to cover at least 67 units (i.e. 100×67%) of Scope 3 emissions. However, if the company mistakenly calculates 67% based on only 60, the resulting coverage is only about 40 units, which is much lower than the actual 67 units required. This approach is clearly not up to standard. Therefore, companies must include more Scope 3 categories in their targets by expanding the scope of targets or supplementing their inventories to ensure that at least 67% of total actual emissions are covered. The SBTi document also recommends that companies use a complete Scope 3 inventory to identify key emission categories and prioritize the largest emission categories to be included in the target boundary to achieve the 67% coverage threshold [13][14] (high emission categories in different industries such as Category 1 in manufacturing, Category 4 in logistics, Category 11 in the automotive industry, etc.[15]). In summary, the SBTi requires that coverage of Scope 3 reduction targets be calculated as a numerical of total emissions across all relevant categories. Companies that only inventory some categories cannot change this requirement: if there are unchecked categories, their emissions must be included in the total amount as exclusions, and the target must still cover more than 67% of the total to meet the SBTi standard[4][7]. 

3. Document basis and version

 (1) SBTi Corporate Net-Zero Standard V1.2 (March 2024) explicitly adopts an "extended boundary" approach, requiring near-term target Scope 3 to cover at least 67% of emissions[16]; the long-term target is increased to 90% coverage [17]. Section 4.3.2 and Appendix Charts of the Standard further illustrate the expansion of near-term Scope 3 coverage [16][18]. 

(2)SBTi Corporate Near-Term Criteria V5.2 (March 2024) is a detailed standard set by the recent science-based targets, of which Clause C6 requires that the Scope 3 target cover at least 67% of the reporting + exclusion of emissions[3]; At the same time, the exclusion of C5 restriction Scope 1+2 and Scope 3 lists shall not exceed 5% each[9]. 

(3) SBTi Criteria Assessment Indicators V1.4 (April 2025) provides clear criteria for determining the validation process in accordance with Clause C6: [6.1] It states that at least 67% of mandatory Scope 3 emissions (reporting + exclusion) must be covered and this ratio must be met in both the base year and the most recent year[4]; It also emphasizes that excluded emissions must be included in the coverage calculation [7]. In addition, the document requires companies to quantify and disclose all Scope 3 emissions and exclusions in the [5.2-5.4] indicator, ensuring that the exclusions do not exceed 5% and are continuously monitored [10][19]. 

(4) The SBTi Procedure for Validation of Targets V1.2 (2023, latest version) regulates the target validation process. The process reviews the targets submitted by the company based on the above evaluation indicators, including checking whether the company's Scope 3 inventory and target coverage rate meet the 67% threshold [8][7]. Companies are required to provide Scope 3 emissions and target coverage (Table 9) in the submission form for verifiers to confirm that the coverage calculation includes all excluded emissions[8][7]. 

(5) SBTi Glossary V1.2 (July 2024) explains the definition of terms and the usage of SBTi. Although the glossary does not directly provide a formula for calculating the 67% coverage rate, the relevant entries emphasize that understanding the SBTi's Scope 3 target boundaries must comply with the completeness requirements of the GHG Protocol standard, such as using a complete Scope 3 list to determine the categories that need to be included to cover 67% of emissions[13]. 

(6) The Getting Started Guide V1.1 (March 2024) reiterates the key criterion in the form of a concise guide: if Scope 3 emissions account for a significant (≥40%), the near-term target must cover at least 67% of Scope 3 emissions[1][2]. The guidance reminds companies to set targets based on total Scope 3 emissions in plain language, and cites the requirements of the SBTi standard to emphasize this. 

The unanimous conclusion of the above document is that the 67% coverage of Scope 3 must be based on the sum of all relevant Scope 3 emissions of the enterprise. Regardless of which categories are inventoried, companies need to include the unchecked part as excluded emissions in the total assessment to ensure that the science-based reduction target covers the vast majority (at least two-thirds) of greenhouse gas emissions in the value chain[3][7]. This is a key basis for assessing the effectiveness and adequacy of the SBTi's targets, and it is also an important safeguard to prevent companies from underestimating their carbon reduction commitments through scope reduction. The contents of the various versions of the document are quoted above, which clearly supports the above conclusions.  

Chapter 4   Net-Zero Goal Setting 

Long-term goals are built on near-term goals and are concrete plans for companies to commit to reaching net zero by 2050 or sooner. The main requirements of the SBTi Net-Zero Corporate Manual are as follows: 

1. Coverage Boundaries 

• Comprehensive coverage: Long-term targets must cover 95% of the company's ≥ 1 and 2 emissions and ≥95% of its Scope 3 emissions[5][6]. Any emission exclusion must not exceed 5%. 

• "Extended boundary" principle: Near-term futures only need to cover 67% of Scope 3, but long-term net zero needs to increase Scope 3 coverage to 95%. In the public consultation, the SBTi identified this as the most ambitious and consistent approach, encouraging companies to decarbonize the entire supply chain through long-term cooperation[12]. 

2. Emission Reduction Ambition and Neutrality 

•  At least 90% absolute emissions reduction: The SBTi expects most companies to reduce their Scope 1 + 2 + 3 emissions by ≥90% to achieve net zero[2]. This means that only ≤10% of the base year emissions can be set aside as residual emissions, which need to be permanently neutralized by carbon removal. 

•  Prohibit carbon offsets as a means of emission reduction: Neither short-term nor long-term targets should include traditional carbon offsets in emission reductions. Carbon removal can only be used to neutralize unavoidable residual emissions after long-term goals are achieved [2]. 

• Timeline: Companies need to announce their long-term goals as soon as possible after the near-term target year, with 2050 or earlier as the deadline for achieving net zero. When submitting long-term targets, one or more sub-targets (categorized by sector or scope) can be provided to describe the emission reduction pathway [10]. 

3. Form filling and target statement 

• Example of long-term goal statement: "XX Company commits to reducing Scope 1+2+3 emissions by at least 90% compared to the 20XX base year by 20XX (no later than 2050) and permanently carbon removing remaining emissions to achieve net zero." 

• Supplementary information: Long-term targets should be submitted with a description of the methodology and scenarios used (e.g., cross-departmental absolute contraction, industry-specific pathways, etc.), and provide the reduction margin for each area or category. If a company has land, forest, and agricultural emissions (FLAG), it is also required to submit a separate FLAG target.  

Chapter 5   Comprehensive Suggestions and Frequently Asked Questions 

1. Plan short-term and long-term goals at the same time

• Consistent base year: It is recommended to use the same base year for Scope 1+2 and Scope 3 near and long-term targets to avoid inconsistencies. If a company has set an early base year but its emissions data is lagging behind, it can adjust the base year when updating the target. 

•  Set short-term goals and extend them to the long term: Near-term goals focus on near-term carbon reduction actions, while long-term goals expand to net-zero by 2050. Companies can submit long-term goals several years after submitting near-term bids, but they need to ensure logical consistency between the two. 

• Regular Review and Update: The SBTi requires companies to review their targets every 5 years to reflect the latest changes in science and business activities. If significant changes occur, such as mergers and acquisitions or significant increases in emissions, the target needs to be updated in a timely manner. 

2. Supply Chain and Customer Engagement FAQs

•  Is it mandatory to adopt engagement goals? No. If companies can directly control and reduce Scope 3 emissions, they can adopt absolute or intensive reduction targets; But when data is insufficient or emission reduction authority is limited, supply chain/customer engagement targets offer an alternative. 

• How can I prove that the supplier has set up an SBT? Suppliers may be required to apply for verification from the SBTi or to provide evidence of the target list published by the SBTi. The SBTi also provides a public target dashboard for inquiries. 

• Can B2C consumers be targeted? No way. The SBTi clearly states that participation targets can only be targeted at corporate customers or suppliers, excluding end consumers. 

3. Carbon removal in long-term goals

•  What is Neutralisation? When a company achieves a ≥90% reduction, there may still be emissions that are difficult to eliminate (such as some industrial processes). This part needs to be neutralized by permanent carbon removal (e.g., direct air capture and storage, soil or ecosystem carbon sequestration) [2]. 

• How is it different from carbon offset? Traditional carbon offsets (such as purchasing carbon credits) often replace emissions reductions externally but cannot be counted towards the SBTi's reduction progress. Removal actions to neutralize residual emissions are only accepted after long-term targets have been met, and permanence and additionality must be ensured.  

Chapter 6    Summary of short-term and long-term goals 

Adopting the scientific pathway provided by the SBTi to set carbon reduction targets can help companies achieve international comparability and credibility in their net-zero transition. Near-term targets call for reducing most of direct emissions and covering most of the value chain emissions over 5–10 years, while long-term targets call for absolute emissions reductions of ≥90% and neutralizing residual emissions by 2050. For companies with limited Scope 3 impact, supply chain or customer engagement targets can be used to encourage key partners to set science-based emissions reduction targets within 5 years. Through comprehensive data inventory, cross-departmental collaboration, and supply chain collaboration, companies can not only meet SBTi standards but also gain a head start in the net-zero economy. 

Chapter 7  Descriptions of the latest SBTi setup process 

(According to SBTi Getting Started Guide v1.2, October 2025)

To ensure that the scientific reduction targets set by companies comply with the latest international standards and review requirements, the SBTi will officially adopt the new version of the Getting Started Guide v1.2 and the integrated Validation Portal verification mechanism from 2025. The following provides a supplementary explanation of the latest goal setting process, comparison of target types, method classification, and documentation links.

 1. SBTi Four Stages of Target-Setting Process The new SBTi guidelines clearly divide the target-setting process into four stages, and companies must complete the following steps in order: 

• Commit : Companies must register on the SBTi Validation Portal and sign a letter of commitment to formally express their intention to set science-based reduction targets. Businesses must submit their full targets for SBTi review within 24 months from the commitment date. 

• Develop: This stage sets the core for the goal. Companies must establish a base year, calculate a complete greenhouse gas inventory (Scopes 1–3), and select the appropriate target setting methodology (Methodology) based on industry characteristics. At the same time, the scope coverage, reduction range and target period are clarified. 

• Submit: The enterprise uploads the Target Submission Form and the required supporting materials through the Validation Portal. SBTi Services conducts technical reviews in accordance with the "Criteria Assessment Indicators" and issues Target Validation Reports and Decision Letters. 

• Disclosure and Tracking Stage (Communicate): After passing the review, companies must disclose their targets on a public platform and update their progress and greenhouse gas emissions reports annually to ensure that their reduction actions are consistent with SBTi commitments.  

2. Near-term vs Long-term Targets 

3. Base Year and Exclusions

•  Base Year: The base year should be between 2015 and 2023 and must be a typical year representing the company's operations. If there are subsequent organizational changes (mergers, sales, restructuring), the base year will be recalculated in accordance with the principles of Chapter 5 of the GHG Protocol. 

•  Exclusion Threshold: When setting scope boundaries, companies must not exclude more than 5% of total Scope 1 and Scope 2 emissions. If a Scope 3 target is set, it must also exclude no more than 5% of total Scope 3 emissions. 

4. Classification of Six Target-Setting Methods  

5. Neutralization and Beyond Value Chain Mitigation 

• Neutralization: When a company has achieved at least 90–95% of its actual reductions, permanent removals must be made for the remaining "residual emissions" that are difficult to eliminate, such as carbon sequestration (CCUS), biological carbon storage, or direct air capture (DAC). 

•  Beyond Value Chain Mitigation: Companies should invest in or support climate actions outside the value chain, such as renewable energy development, natural carbon sinks, or community carbon reduction projects. This is a voluntary action aimed at accelerating the global decarbonization process. 

6. SME Route 

According to the "FAQs for SMEs v6.0" (October 2024), SMEs can choose a Simplified Validation Route: 

•  No need to go to the commitment stage (direct submission target); 

• Only need to set short-term targets (Scope 1+2 reduction by 42%, Scope 3 only needs to be measured and reduced by commitment); 

• Simplified verification fees and processes (fixed fee of USD 1,000–2,500, no full review report required); 

• If SMEs have a complete inventory and long-term planning, they can still choose the Corporate Validation Route.

 7. Links between the Validation Portal and the Criteria document  

8. Conclusion 

The content supplemented in this chapter reflects the latest requirements of the SBTi after full integration in 2024-2025, with a particular emphasis on the transparency of the four-stage process, the consistent logic of short-term and long-term goals, the diversification of reduction methods, and the digital integration with the Validation Portal. It is recommended that before submitting any SBTi targets, companies must check 

• whether they have achieved 95% coverage of Scope 1 and 2;

•  whether it has a 67% coverage rate in Scope 3; 

• whether the duration and reduction of short-term and long-term targets are clearly distinguished; 

• and ensure that all documents are uploaded in the latest Criteria format listed in the Validation Portal. 

This ensures that the company's climate targets are aligned with the latest science and successfully passed the SBTi verification. 

Chapter 8: Case Study of the SBTi User Registration Interface

The figure illustrates how a company’s near-term emission reduction targets for Scope 1 and Scope 2 are assessed within the SBTi official Validation Portal. The system evaluates whether the proposed targets meet the minimum reduction rate required under the SBTi 1.5°C-aligned near-term decarbonization pathway.

SBTi explicitly requires near-term targets to be set using an absolute emissions reduction approach and to achieve a minimum level of ambition consistent with limiting global warming to 1.5°C (currently approximately a 42% reduction). Through the simulation of the decarbonization pathway and comparison against the minimum threshold, the assessment confirms that the proposed reduction level is science-based, robust, and verifiable.

This figure presents the results of the quantitative compliance assessment of emissions coverage conducted within the official SBTi (Science Based Targets initiative) Validation Portal after a company has completed the submission of its long-term net-zero target. The assessment evaluates whether the defined target boundary meets the required emissions coverage thresholds under the SBTi Corporate Net-Zero Standard.

According to the Standard, a company’s long-term net-zero target must cover at least 95% of Scope 1 and Scope 2 emissions, as well as at least 90% of Scope 3 emissions, to ensure that the net-zero commitment comprehensively addresses material emissions across both operations and the value chain.

As shown in the figure, the company achieves 100% coverage for Scope 1 and Scope 2 emissions, exceeding the SBTi minimum requirement of 95%. In addition, Scope 3 emissions coverage reaches 99%, surpassing the minimum 90% threshold required for long-term net-zero targets. These results indicate that the company has incorporated nearly all direct emissions, energy-related indirect emissions, and value chain emissions into its decarbonization and neutralization planning, thereby meeting SBTi’s stringent requirements for boundary completeness, auditability, and international consistency in long-term net-zero target setting.

This figure illustrates the results of the quantitative verification of the emissions reduction ambition for a company’s Scope 3 target as assessed within the official SBTi (Science Based Targets initiative) Validation Portal. When setting Scope 3 emissions reduction targets, SBTi requires that the level of reduction ambition meets or exceeds the minimum reduction threshold derived from SBTi-approved climate mitigation pathways, ensuring that the target is science-based and aligned with global temperature-limitation goals.

As indicated by the slider in the figure, the SBTi system calculates a minimum required reduction rate of 25% (Min. 25.0%). This threshold represents the minimum level of Scope 3 emissions reduction that must be achieved in the selected target year and scenario in order to comply with SBTi’s minimum ambition requirements.

The company’s defined Scope 3 reduction ambition is 100%, which substantially exceeds the SBTi minimum threshold. This outcome demonstrates that the company’s Scope 3 target reflects a high level of stringency in terms of reduction magnitude and successfully passes the SBTi system’s compliance assessment for ambition under the Scope 3 target framework.

This figure illustrates the dual quantitative assessment conducted within the SBTi (Science Based Targets initiative) Validation Portal for the company’s near-term emissions reduction targets covering Scope 1 and Scope 2. The assessment comprises two core review elements: emissions coverage and reduction ambition.

With respect to emissions coverage, the figure shows that the company has fully included its Scope 1 emissions of 22.49 tCO₂e and Scope 2 (location-based) emissions of 333.46 tCO₂e within the defined target boundary. Emissions coverage for both Scope 1 and Scope 2 reaches 100%, exceeding the minimum 95% coverage threshold required by SBTi for near-term targets. This confirms compliance with SBTi requirements for the comprehensive inclusion of direct emissions and energy-related indirect emissions.

Regarding reduction ambition, the Ambition assessment section indicates that the SBTi system has automatically calculated a minimum required reduction rate of 90% (Min. 90%) based on a 1.5°C temperature-alignment pathway. The company’s selected reduction ambition is 100%, exceeding the minimum requirement. This demonstrates that the near-term Scope 1 and Scope 2 targets not only meet but surpass SBTi’s ambition criteria aligned with the 1.5°C pathway.

Overall, this figure confirms that the company’s near-term Scope 1 and Scope 2 targets are compliant with SBTi scientific and technical standards across both dimensions of boundary completeness and reduction stringency, providing a robust and science-based foundation for successful validation.

This figure presents the compliance assessment results generated within the SBTi (Science Based Targets initiative) Validation Portal after the company completed the submission of its near-term emissions reduction target (Near-term target, target year 2030). The assessment evaluates the extent to which Scope 1, Scope 2, and Scope 3 emissions are included within the defined target boundary, based on emissions coverage criteria.

For Scope 1 and Scope 2, the company applies the Absolute – Cross-Sector methodology, using 2022 as the base year and 2030 as the target year. All direct emissions and energy-related indirect emissions are fully included within the near-term target boundary, resulting in a combined Scope 1 and Scope 2 emissions coverage of 100%. This exceeds the minimum coverage requirement of 95% stipulated by SBTi for near-term targets.

With respect to Scope 3 (value chain emissions), the figure indicates that the company has incorporated all identified material Scope 3 categories into its near-term decarbonization target. The overall Scope 3 emissions coverage reaches 100%, significantly exceeding the SBTi minimum requirement of at least 67% coverage, which applies to companies whose Scope 3 emissions account for more than 40% of total emissions.

These results demonstrate that, at the near-term target stage, the company simultaneously meets SBTi’s dual requirements of full inclusion for Scope 1 and Scope 2 emissions and high coverage for Scope 3 emissions. This confirms that the company’s decarbonization strategy extends beyond operational emissions to encompass its entire value chain, reflecting strong scientific alignment and a high likelihood of successful validation under SBTi criteria.

This figure presents the results of the ambition compliance assessment for the company’s Scope 3 near-term emissions reduction target as evaluated within the official SBTi Validation Portal.

According to the SBTi Corporate Net-Zero Standard, when a company’s Scope 3 emissions account for more than 40% of its total emissions, the near-term Scope 3 target must meet the minimum ambition threshold defined by SBTi. For most cross-sector companies, this threshold corresponds to a minimum reduction ambition of at least 25%, ensuring alignment with climate mitigation pathways consistent with a well-below 2°C or 1.5°C scenario.

As shown in the figure, the “Min. 25.0%” value represents the minimum qualifying ambition level automatically calculated by the SBTi system. The company’s selected and submitted ambition level is shown as 100%, which significantly exceeds the minimum requirement. This confirms that the Scope 3 near-term target fully meets, and surpasses, SBTi’s ambition criteria and is therefore compliant with the technical requirements for official validation.

These results indicate that, in setting its Scope 3 near-term decarbonization target, the company not only satisfies emissions coverage requirements but also ensures that the reduction intensity itself is aligned with science-based mitigation pathways. This avoids purely nominal target inclusion and demonstrates a substantive level of ambition consistent with SBTi’s expectations for meaningful emissions reductions.

References 

1.      SBTi Corporate Near-Term Criteria V5.2/V5.3[3][1][19]

2.      SBTi Criteria Assessment Indicators V1.4[22][10]

3.      SBTi Getting Started Guide (2024)[18][20]

4.      SBTi Procedure for Target Validation (Oct 2024)

5.      SBTi Official Examples and Press Releases[2][30][31]