What is the basis for SBTi's science-based decarbonization? What are the criteria for goal setting? What are the steps? 

SBTi Initiative SBTi's 

Science Based Targets initiative is a global organization whose goal is to promote companies and organizations to achieve carbon neutrality by setting climate science-based emission reduction targets. The initiative is co-sponsored by CDP, the UN Global Compact, the World Resources Institute and the World Wide Fund for Nature (WWF) to help companies set and promote emissions reduction targets in line with the Paris Agreement. 

Resources Provided by SBTi Organizations 

In the process of enterprise participation in SBTi, SBTi provides comprehensive technical support and resources, including technical guides, tools, and training, to help companies conduct emissions inventory, target setting, and progress monitoring. Companies can leverage these resources to enhance their internal capabilities and ensure the effectiveness and sustainability of their emission reduction actions. In addition, SBTi will help companies understand the latest emission reduction methods and technologies, enhancing the professional capabilities of their internal teams. 

SBTi Science Based Scope 

Companies need to consider Scope 1, Scope 2, and Scope 3 emissions when setting emission reduction targets. Scope 1 and Scope 2 emissions include emissions directly controlled by the enterprise and indirect emissions from purchased electricity, steam and cooling, while Scope 3 emissions include other indirect emissions along the entire value chain, such as emissions from the supply chain and product use stage. The SBTi's standards require companies to consider these emissions scopes comprehensively and develop comprehensive emission reduction plans.

 Near-term and long-term targets 

When setting short-term and long-term targets, companies need to ensure that their targets are in line with the 1.5°C climate scenario based on science-based criteria. Near-term targets are typically achieved within five to 10 years, with the goal of rapidly reducing emissions, typically by at least 50% by 2030. The long-term goal needs to be achieved by 2050 or earlier, with the goal of achieving at least 90% emission reduction and eventually reaching net-zero emissions. The setting of these targets not only helps companies achieve significant emission reduction results in the short term but also ensures that they achieve sustainable emission reduction targets in the long term. Companies need to regularly submit progress reports to the SBTi and CDP to showcase their progress and results in emission reduction actions. These reports not only help companies track and evaluate their emission reduction performance but also enhance their transparency and credibility in the international market. By participating in SBTi and CDP disclosures, companies can demonstrate their efforts in addressing climate change and enhance their market reputation and competitiveness. 

The SBTi's process is rigorously designed to cover every stage from registering as a member, signing the pledge, establishing goals, submitting targets, external communication, and disclosure. Through these steps, companies can set and implement science-based emission reduction targets and ultimately achieve the goal of net-zero emissions. This not only helps combat climate change but also enhances the competitiveness and reputation of companies in sustainable development. 

About the SBTi Science Based Targets initiative 

The Science Based Targets initiative (SBTi) is a global organization dedicated to helping companies set science-based greenhouse gas reduction targets to combat climate change. Businesses participating in the SBTi and achieving their goals require a series of rigorous steps, including registering as members, joining the initiative, submitting commitments, setting targets, completing target reviews, and benchmarking the 1.5°C warming pathway. Here's a detailed overview of the process, including the time required for each step and the final method of continuous disclosure to track performance. 

Guiding SBTi Membership and SBT Steps Process 

In the process of participating in the SBTi (Science Based Targets initiative), companies need to follow a series of strict steps, including signing commitments, establishing targets, submitting targets, external communication, and information disclosure. The following is a detailed introduction and specific content of each step: 

A. Sign Commitment 

A1. Register as a Member 

time: 2-4 weeks

 Businesses need to register as members on SBTi's official website. This process usually takes 2-4 weeks, during which companies need to provide basic information, including company name, industry, contact information, and initial emission reduction plans. The main purpose of this stage is to allow the SBTi to understand the basic situation of the enterprise and ensure that it meets the basic conditions for joining. 

A2. Signing Commitment Letter 

Time: 1-2 weeks 

Companies need to sign a commitment letter provided by the SBTi, indicating their commitment to setting specific science-based emission reduction targets within 24 months. The letter of commitment must be signed by the senior leadership of the enterprise to demonstrate the company's determination and sense of responsibility. This process usually takes 1-2 weeks, and companies need to ensure that they have clear understanding and support within themselves. 

B. Establish Targets 

B1. Develop Target Setting Plan 

Time: 6-8 weeks 

After submitting the commitment letter, the company needs to develop a detailed goal setting plan. This includes the specific value of the emission reduction target, the time frame for achieving the target, the emissions areas involved (Scope 1, Scope 2 and Scope 3), and the strategy for implementing emission reduction measures. This plan needs to be discussed and reviewed internally to ensure its feasibility and scientific quality. This phase usually takes 4-8 weeks. 

B2. Conduct Emissions Inventory 

Time: 8-12 weeks 

Companies need to conduct a comprehensive greenhouse gas emissions inventory to determine the base year and existing emission levels. The scope of the inventory includes:

• Scope 1 Emissions: Emissions directly controlled by the enterprise, such as fuel combustion. 

• Scope 2 Emissions: Indirect emissions from purchased electricity, steam and cooling. 

• Scope 3 Emissions: Other indirect emissions throughout the value chain, such as emissions from the supply chain and product use stage.

 B3. Set near-term and long-term targets

Based on the results of the emissions inventory, companies need to set short-term and long-term emission reduction targets. Near-term targets typically need to be achieved within 5 to 10 years, aligning with a 1.5°C climate scenario, with the goal of rapidly reducing emissions, typically by at least 50% by 2030. The long-term goal needs to be achieved by 2050 or earlier, with the goal of achieving at least 90% emission reduction and eventually reaching net-zero emissions. This stage usually takes 8-12 weeks.

 Time: 6-12 months 

Based on the results of the emissions inventory, companies need to set short-term and long-term emission reduction targets: 

• Near-term targets: These goals need to be achieved within 5 to 10 years, in line with the 1.5°C climate scenario, with the goal of rapidly reducing emissions, usually by at least 50% by 2030.

•  Long-term Targets: These goals need to be achieved by 2050 or earlier, with the goal of achieving at least 90% emission reductions and ultimately achieving net-zero emissions. 

C. Submit Targets 

C1. Submit Targets for Validation 

Time: 6-12 months 

Companies need to submit their set emission reduction targets to the SBTi for review. The SBTi conducts a detailed review based on its science-based criteria to ensure that the targets are in line with the latest climate science and the requirements of the Paris Agreement. This process usually takes 2-4 weeks. When submitting targets, companies need to provide detailed emissions data, emission reduction strategies, and implementation plans for SBTi evaluation.

 C2. Validation and Approval 

Time: 8-24 months 

The SBTi review process includes multiple stages of expert evaluation and technical review to confirm the reasonableness and feasibility of the targets. The SBTi will review all materials submitted by the business and may request additional information or additional clarification. Once the review is approved, the SBTi will formally approve the target and notify the business. This process usually takes 4-6 weeks. 

D. External Communication 

D1. Public Announcement 

Time: 1-3 months 

After the target is approved, the company needs to announce its science-based emission reduction target to the public. This can be done through press conferences, company websites, public reports, etc. The announcement of the targets helps increase transparency and the company's market reputation, and demonstrates the company's commitment and actions in tackling climate change. This process usually takes 1-2 weeks.

 D2. Engage with Stakeholders 

Time: Ongoing 

Enterprises should actively communicate with their stakeholders, including employees, suppliers, customers, and communities, to share their emission reduction goals and progress, and seek cooperation and support to promote common sustainable development goals. Businesses can maintain close contact with stakeholders through regular meetings, reports, and other communication channels to ensure they understand and support their emission reduction actions. This process is ongoing. 

E. Disclosure 

E1. Continuous Disclosure 

Time: Annual 

Disclosure Companies need to participate in CDP (Carbon Disclosure Project) disclosure every year, submitting detailed carbon emission data and progress in emission reduction actions. This helps track and evaluate the company's emission reduction performance and showcase its sustainability efforts to investors and the public. Participating in CDP disclosure can also enhance transparency and credibility in the international market. This process is disclosed annually. 

E2. Analysis and Feedback 

Time: Annual 

CDP will be conducted annually to analyze the data submitted by the company and provide feedback reports. Businesses can use this feedback to identify areas for improvement, adjust their emission reduction strategies, and enhance overall performance. The process of analysis and feedback not only helps companies understand their progress in emission reduction actions but also provides valuable insights to guide future emission reduction plans and actions. This process is carried out annually. 

SBTi Science Based Targets Short-term and Long-term Setting Periods and Standards? What are the carbon reduction methodologies? 

 SBTi Science Based Targets Short-term and Long-term Setting Periods and Standards? 

According to SBTi (Science Based Targets initiative) documents and standards, companies are required to set near-term and long-term emission reduction targets that align with the latest climate science to achieve science-based emission reduction actions and ultimately achieve net-zero emissions. Here's a closer look at the near-term and long-term targets. 

I. Near-term Targets 

1. Concept and Definition Near-term targets refer to the greenhouse gas emission reduction targets that a company needs to achieve within 5 to 10 years. These targets are set in accordance with science and aim to drive companies to rapidly reduce carbon emissions in the short term to address the urgency of climate change. 

2. Standard time

• frame for goal setting: Setting near-term goals should be completed within 5 to 10 years after the base year. 

• Emission reduction requirements: The target must comply with the 1.5°C climate scenario, requiring companies to halve emissions by 2030.

•  Scope coverage: Scope 1 and Scope 2 emissions need to be covered, and Scope 3 emissions are recommended, especially when Scope 3 emissions exceed 40% of total emissions. 

3. Implementation Steps : 

• Select a base year as a reference point for emissions.

•  Data Collection and Inventory: Conduct a comprehensive greenhouse gas emissions inventory covering Scope 1, Scope 2 and Scope 3.

•  Goal setting: Set specific emission reduction targets based on science-based standards. 

• Internal Review and Certification: Submit the target to the SBTi for review and certification. 

II. Long-term Targets 

1. Concept and Definition 

Long-term targets refer to long-term emission reduction targets achieved by a company before 2050 or earlier. These targets aim to achieve ultimate net-zero emissions, which is a significant reduction in greenhouse gas emissions and neutralization of all residual emissions. 

2. Standard time

• frame for goal setting: Long-term goals need to be achieved by 2050. 

• Emission Reduction Requirements: Require companies to reduce greenhouse gas emissions by at least 90% by 2050, aligning with the 1.5°C climate scenario. 

• Residual Emissions Management: Permanent carbon removal methods and carbon sequestration technologies are required to offset residual emissions that cannot be eliminated. 

3. Implement 

• long-term planning: Develop long-term emission reduction strategies and action plans to ensure that the company can achieve net-zero emissions by 2050.

•  Technological Innovation: Invest in technological innovation and research and development to enhance emission reduction technologies and efficiency. 

• Continuous Monitoring and Improvement: Regularly monitor emissions data, evaluate target achievement, and make adjustments and improvements based on actual conditions. 

III.Complementarity of short-term and long-term goals 

Near-term and long-term targets are complementary and jointly promote the emission reduction actions of enterprises. Near-term targets focus on rapid emissions reductions in the short term, providing clear action guidelines and phased outcomes that encourage companies to take immediate action. Long-term goals provide long-term emission reduction pathways for companies, ensuring that they achieve comprehensive net-zero emissions by 2050. 

1. Rapid emission reduction in the short term (by 2030) 

• Reduce greenhouse gas emissions by 50%.

•  Employ high-efficiency technology and renewable energy. 

• Improve energy efficiency and reduce waste. 

2. The ultimate goal in the long term (by 2050)

•  reduce greenhouse gas emissions by at least 90%.

•  Invest in permanent carbon removal technology. 

• Maintain and expand carbon sinks to achieve the neutralization of remaining emissions. 

 What are the SBTi scientific decarbonization methodologies? 

SBTi's scientific decarbonization methodology most commonly uses the industry decarbonization approach and the absolute value method . 

When setting science-based targets, companies can choose between the Sectoral Decarbonization Approach (SDA) or the Absolute Contraction Approach. The two methods differ significantly in how emission reduction targets are set and calculated. Here's a detailed introduction to these two methods and their key differences: 

The industry decarbonization method and the absolute value method have their own advantages and scope of application in setting carbon reduction goals. The Industry Decarbonization Act takes into account industry characteristics and technological advancements, making it highly targeted but the setup process is relatively complex. The absolute value rule is simple and applicable to all industries, but it does not take into account the characteristics of the industry, which may bring greater pressure on some industries to reduce emissions. When choosing a carbon reduction target setting method, enterprises should comprehensively consider the advantages and disadvantages of these two methods based on their own industry characteristics and specific circumstances, and choose the most appropriate emission reduction strategy.  

A. Sectoral Decarbonization Approach (SDA) 

Concept and Definition 

Sectoral decarbonization approach is a target-setting approach based on industry-specific emission reduction pathways, aiming to allocate carbon allowances based on industry characteristics and emission reduction potential. SDA considers technological advancements, energy efficiency improvements, and changes in market demand across various industries, and formulates industry-specific emission reduction pathways based on these factors. 

Set steps Industry classification: 

1.Classify enterprises into corresponding industries based on industry characteristics. For example, manufacturing, electric power, transportation, etc. 

2.Base Year Selection: Select a base year as a reference point to calculate the carbon emissions for that year. 

3.Industry Emission Reduction Curve: Develop an emission reduction curve for each industry based on the International Energy Agency's (IEA) emission reduction scenario. 

4.Corporate Emission Reduction Targets: Based on the industry's emission reduction curve, allocate carbon quotas to each company and set corresponding emission reduction targets. 

Advantages: 

• Emission reduction targets are set according to industry characteristics, which is more realistic and operable. 

• Technological Advancement Considerations: Consideration of the potential for technological advancements and energy efficiency improvements in various industries.

 Disadvantages: 

• High complexity: Requires detailed industry data and professional analysis, and the setup process is relatively complex. 

• Dependence on external data: Rely on emission reduction scenarios and data provided by external agencies such as the International Energy Agency. 

B. Absolute Contraction Approach 

Concept and Definition 

The absolute value method is a target setting method based on absolute emission reductions, aiming to ensure that all companies set emission reduction targets based on the reduction of total global carbon emissions, regardless of industry characteristics. This method requires companies to directly reduce their absolute carbon emissions to meet global emission reduction needs. 

Setting Steps Base Year Selection: 

1.Select a base year as a reference point to calculate the year's carbon emissions. 

2.Global Emission Reduction Targets: Determine the total carbon emissions that need to be reduced based on science-based global emission reduction targets. 

3.Corporate Emission Reduction Targets: Set absolute emission reduction targets based on the company's carbon emissions in the base year. For example, reduce carbon emissions by 50% by 2030. 

Advantages 

• Straightforward: The setting process is simple, easy to understand and operate. 

• Global Consistency: Ensuring that all companies follow the same emission reduction requirements contributes to achieving global emission reduction goals. 

Disadvantages 

• Lack of Targeting: Failing to consider industry characteristics and technological advancements, may not be operational for certain industries.

•  High Emission Reduction Pressure: For certain industries with high carbon emissions, setting absolute emission reduction targets may face greater pressure to reduce emissions 

Panoramic Analysis of SBTi Data Evaluation and Application (SBT Carbon Emission Setting) 

The Science-Based Targets initiative (SBTi) is a scientific guide for companies to move towards net-zero emissions and sustainable development, with its core being transparent and accurate based on data to ensure that emission targets align with the global 1.5°C climate target. This article will combine five core tables to delve into the SBTi's data requirements and application scenarios, helping companies comprehensively understand the support points of science-based targets from data collection, evaluation, and practice. 

The following five tables collectively form a comprehensive data management framework, covering data definition, quality assessment, application scenarios, and filling examples, helping companies meet the high standards of SBTi. It also provides specific directions for companies to improve their data management and help them achieve their emission reduction goals and sustainable development vision. 

SBTi's core position – Can carbon credits offset emissions? 

1. SBTi's Core Position: Limiting the Use of Carbon Credits 

The SBTi has consistently emphasized the importance of "direct emission reductions" in climate action, rather than relying on carbon credits to achieve carbon reduction goals. This reflects the organization's scientific orientation and rigor, and is in line with its consistent strategy: companies should prioritize improving their own operations and technical processes, rather than relying too heavily on external carbon offsets to "buy carbon emissions". 

• Advantages: This stance can enhance the actual carbon reduction effect of enterprises, reduce the suspicion of "greenwashing", and also help improve the overall global emission reduction progress.

•  Challenge: For businesses with limited resources, the cost of direct emissions reduction can be significantly higher than purchasing carbon credits, especially for small and medium-sized enterprises (SMEs) with limited technology and funding.

 2. Controversy over Carbon Credits: Quality and Credibility 

As a market-oriented carbon reduction tool, the effectiveness and credibility of carbon credits have been questioned. Especially in some carbon markets, the lack of transparency of projects and whether carbon offset projects are real and effective makes this method easy to be criticized as "coping with errands" or "ineffective carbon reduction". 

• Question: Is the source of carbon credits credible? Can it truly reduce emissions rather than simply shifting responsibility elsewhere? 

• Market reality: For certain industries (such as aviation, steel, and other industries that are difficult to decarbonize), carbon credits will still be an important supplementary tool in the short term.

 3. SBTi's cautious approach to future carbon credit policies 

The report mentioned that the SBTi plans to conduct a public consultation by the end of 2024 and update its policy in 2025. This shows that while the organization is sticking to its core position, it is also beginning to realize the potential of carbon credits in some special scenarios. For example, whether supplementary solutions can be provided for the reduction of Scope 3 emissions under strict regulations. 

• My opinion: This is a balanced approach that adheres to the principles of science-based carbon reduction while providing some flexibility for businesses in specific situations.

•  Challenge: This requires very clear and operational rules to prevent companies from exploiting policy loopholes to avoid actual emission reduction responsibilities.

 4. Practical Implications for Businesses 

The SBTi's stance has different implications for different types of businesses:

•  Large enterprises: may need to invest more resources in developing their own decarbonization technologies and solutions, especially in Scope 3 supply chain management. 

• Small and medium-sized enterprises (SMEs): These companies are limited in resources and capabilities, and may feel more pressure if they cannot purchase carbon credits. 

5. Future Challenges and Possibilities

 The report reflects the dilemma faced by the SBTi: on the one hand, it must adhere to scientific carbon reduction principles to maintain credibility, and on the other hand, it needs to consider the actual situation and economic affordability of enterprises.

•  Future possibilities: 

• If the SBTi continues to maintain strict standards, it may attract companies that are truly committed to carbon reduction, but will lose some companies that only want to "meet the standard". 

• If restrictions on carbon credits are relaxed, it may face more criticism from the market and may even lead to a decline in credibility.

 Summary of Bu-Jhen's Low-Carbon Strategy 

The SBTi's stance on restricting the use of carbon credits demonstrates its rigor and scientific nature as an international carbon reduction standard. However, in the future, it must find a balance between actual market demand and global carbon reduction goals, otherwise it may lead to companies opting out or seeking alternative frameworks. In this process, developing clear and transparent regulations to ensure the high-quality use of carbon credits will be key to determining their future impact. Enterprises should actively pay attention to SBTi policy trends, combine their own needs and capabilities, and flexibly choose the most suitable carbon reduction path. 

SBTi Member Validation Platform – Illustrative Example 

This figure presents the compliance assessment of the minimum required reduction rate for the company’s near-term emissions reduction targets covering Scope 1 and Scope 2, as evaluated within the official SBTi (Science Based Targets initiative) Validation Portal. The assessment is conducted under the 1.5°C temperature-alignment scenario adopted by SBTi and compares the company’s proposed reduction level against the standardized cross-sector science-based decarbonization pathway.

In accordance with SBTi requirements, near-term targets must be set using an absolute emissions reduction approach and must achieve at least the minimum level of reduction consistent with a 1.5°C-aligned scenario. Through emissions pathway modeling, the system automatically calculates the minimum reduction rate required under the specified base year and target year conditions (currently approximately 42% for cross-sector pathways) and uses this benchmark to determine whether the company’s target demonstrates a sound scientific basis and is suitable for technical review and validation.

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 the company completed the submission of its long-term net-zero target. The assessment is carried out in accordance with the SBTi Corporate Net-Zero Standard and is intended to verify whether the company’s net-zero target demonstrates sufficient completeness in terms of its emissions boundary and coverage of major emission sources.

Under SBTi requirements, 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 meaningfully reflects key greenhouse gas emissions arising from both the company’s operations and its value chain.

As shown in the figure, the company achieves 100% emissions coverage for Scope 1 and Scope 2, clearly exceeding the minimum 95% threshold required by SBTi. In parallel, Scope 3 emissions coverage reaches 99%, also exceeding the minimum 90% requirement specified for long-term net-zero targets. These results demonstrate that, in setting its long-term net-zero target, the company has incorporated nearly all direct emissions, energy-related indirect emissions, and material value chain emissions into its mitigation and neutralization planning, fully aligning with SBTi’s core requirements for boundary completeness, technical auditability, and international consistency.

This figure presents the results of the quantitative compliance verification of the emissions reduction ambition for the company’s Scope 3 target, as assessed within the official SBTi (Science Based Targets initiative) Validation Portal. The assessment is conducted in accordance with SBTi-approved climate mitigation pathways and is designed to confirm whether the defined Scope 3 reduction level meets the minimum science-based ambition threshold and remains aligned with global temperature-limitation goals.

Under SBTi requirements, when Scope 3 emissions play a material role in a company’s overall emissions profile, the associated reduction target must not only include a sufficient share of value chain emissions but must also meet the minimum reduction ambition defined by SBTi. As illustrated by the slider in the figure, the SBTi system automatically calculates a minimum required reduction rate of 25% (Min. 25.0%) based on the selected base year, target year, and applicable climate scenario. This threshold serves as the benchmark for determining whether the Scope 3 target demonstrates basic scientific robustness.

The figure further indicates that the company has set a Scope 3 reduction ambition of 100%, which clearly exceeds the minimum requirement established by SBTi. This result demonstrates that the company has adopted a level of reduction ambition well above the baseline compliance threshold. The Scope 3 ambition not only passes the SBTi system’s compliance assessment but also reflects a strong commitment to substantive value chain emissions management and long-term decarbonization responsibility.

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

With regard to emissions coverage, the figure shows that the company has fully included Scope 1 emissions of 22.49 tCO₂e and Scope 2 (location-based) emissions of 333.46 tCO₂e within the near-term target boundary. 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 that direct emissions and energy-related indirect emissions be comprehensively included in decarbonization management.

In terms of reduction ambition, the Ambition assessment section indicates that the SBTi system automatically calculates the minimum required ambition level for the company’s near-term targets based on a 1.5°C temperature-alignment scenario and performs a compliance comparison accordingly. The results show that the company’s selected reduction ambition is 100%, exceeding the system’s minimum requirement. This demonstrates that the near-term Scope 1 and Scope 2 targets meet and surpass SBTi’s expectations for alignment with the 1.5°C science-based decarbonization pathway.

Overall, this figure verifies that the company’s near-term Scope 1 and Scope 2 targets are fully compliant with SBTi’s scientific and technical criteria across both boundary completeness and reduction stringency, providing a robust and complete basis for formal submission and subsequent technical validation.

This figure presents the emissions coverage compliance assessment conducted within the official 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 whether emissions across Scope 1, Scope 2, and Scope 3 are comprehensively included within the defined target boundary.

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 incorporated into the near-term target boundary, resulting in a combined Scope 1 and Scope 2 emissions coverage of 100%. This clearly exceeds the minimum 95% coverage threshold required by SBTi for near-term targets.

With respect to Scope 3 (value chain emissions), the results indicate that the company has fully included all identified material Scope 3 categories within the scope of its near-term target. Overall Scope 3 emissions coverage also reaches 100%, significantly exceeding the minimum coverage requirement of at least 67% set by SBTi for near-term Scope 3 targets, which applies to companies with a high proportion of Scope 3 emissions in their total emissions profile.

Overall, the assessment demonstrates that, at the near-term target-setting stage, the company meets SBTi’s requirements for both full inclusion of operational emissions and high coverage of value chain emissions. The company’s decarbonization planning therefore extends beyond internal operations to encompass its entire value chain, meeting SBTi’s standards for completeness, technical robustness, and validation readiness.

This figure illustrates the quantitative compliance assessment of decarbonization ambition for a company’s Scope 3 near-term target, as conducted within the official SBTi (Science Based Targets initiative) Validation Portal. The assessment mechanism is designed to evaluate whether the level of decarbonization ambition set at the value-chain level meets the minimum scientific threshold required by SBTi.

According to the SBTi Corporate Net-Zero Standard, when a company’s Scope 3 emissions account for more than 40% of total emissions, its near-term target must not only meet the required emission coverage, but also achieve the minimum ambition threshold defined by SBTi. For most cross-sector companies, this threshold typically corresponds to a minimum 25% reduction, ensuring that the Scope 3 decarbonization pathway is aligned with well-below 2°C or 1.5°C climate scenarios.

The Min. 25.0% displayed in the figure represents the minimum qualifying reduction level automatically calculated by the SBTi system based on the selected base year, target year, and applicable climate scenario. The company’s submitted Scope 3 ambition level is shown as 100%, significantly exceeding the SBTi minimum requirement. This outcome indicates that the company’s Scope 3 near-term target demonstrates a robust level of decarbonization ambition and meets the technical criteria required for official validation.