I.How small and medium-sized enterprises can set carbon emission reduction targets that meet the 1.5°C climate goal           

The global scientific community agrees that limiting global temperature rise to 1.5°C is crucial to preventing the most serious consequences of climate change. As an important part of the global economy, small and medium-sized enterprises (SMEs) are also indispensable for participating in carbon reduction actions. Companies can set emission reduction targets aligned with the 1.5°C climate target through the framework of the Science Based Targets initiative (SBTi), which not only helps combat climate change but also gives them a competitive advantage in sustainable development. 

Three reasons to set carbon emission reduction targets: 

1.Address future policy risks: Reduce potential future climate policy risks, such as carbon taxes and emission limits.

2. Enhance Market Competitiveness: Attract investors, customers, and partners who are concerned about environmental responsibility. 

3.Support global emission reduction actions: Be part of the global response to climate change and enhance the company's social responsibility image. 

1.5°C-aligned carbon reduction target setting guide: 

SMEs can set emission reduction pathways that align with the 1.5°C climate goal by following these steps: 

• Quick Setup Templates: SMEs can use SBTi's standardized emission reduction target templates, which set targets for the company's Scope 1/scope (the company's own direct emissions) and Scope 2 (indirect emissions generated by the company's energy use) to help companies significantly reduce carbon emissions within 5 to 10 years. 

• Science-Aligned Emission Reduction Targets: These targets align with global science's 1.5°C climate model, often requiring companies to reduce greenhouse gas emissions by more than 50% within a set timeframe.

 Specific Actions: 

To achieve the set emission reduction goals, companies can take the following specific measures: 

• Improve Energy Efficiency: Reduce energy consumption and prioritize renewable energy. 

• Supply Chain Management: Implement low-carbon management in the supply chain to reduce the carbon footprint of the supply chain.

•  Internal Carbon Pricing: Accelerate the reduction of Scope 1 and Scope 2 emissions by driving internal emission reduction actions through internal carbon pricing. 

Registering Targets:

 We encourage SMEs to register their emissions reduction targets through the Science Based Targets initiative (SBTi) and become part of global climate action. By registering, companies not only demonstrate their commitment to climate responsibility but also receive support and resources related to carbon reduction. 

II.What is 1.5°C? What is the relationship with global warming? What is the relationship with ppm and carbon budget tipping points? 

The 1.5°C climate target is closely related to atmospheric carbon dioxide concentrations (ppm) and carbon budgets, which together determine the tipping point of global warming and the maximum amount of greenhouse gases we can emit. 

1. Correlation between 1.5°C and ppm 

• ppm (parts per million) refers to the unit of carbon dioxide (CO₂) concentration in the atmosphere, indicating how many CO₂ molecules are contained per million gas molecules. Currently, the concentration of CO₂ in the global atmosphere has exceeded 420 ppm, compared to about 280 ppm before the Industrial Revolution. 

• According to climate model studies, in order to limit global warming to 1.5°C, the concentration of carbon dioxide in the atmosphere should stabilize between 350-450 ppm. This means that when CO₂ concentrations approach or exceed 450 ppm, global warming is likely to reach or exceed 1.5°C, triggering more severe climate change. 

2. Carbon Budget 

• Carbon budget refers to the total amount of carbon dioxide that can be emitted globally to achieve a specific temperature target (e.g., 1.5°C). The concept of this budget is like an emission limit value, and when emissions exceed this limit, global temperature will be difficult to control within the set target. 

• According to the latest report from the United Nations Intergovernmental Panel on Climate Change (IPCC), to limit global warming to 1.5°C, we have a carbon budget of about 300-400 GtCO₂, or 3,000 to 4,000 megatons of carbon dioxide equivalent (GtCO₂-eq). If total global CO2 emissions exceed this range, it will be extremely difficult to achieve the 1.5°C target. 

3. Tipping point of carbon budget 

• Tipping point refers to the climate system entering an irreversible state of change, when greenhouse gas emissions exceed a certain amount, the impact of climate change will rapidly intensify, such as large-scale melting of the Antarctic and Greenland ice sheets, changes in ocean cycles, and the collapse of biodiversity. 

• To avoid these tipping points, we need to reduce global greenhouse gas emissions to a path close to net zero by 2030. If we fail to significantly reduce emissions within the next 10 years, global warming could exceed 1.5°C, triggering these tipping points for climate change.

 4. Carbon Budget and Corporate Responsibility 

Within the framework of carbon budgeting, companies need to set emission reduction pathways that align with science-based carbon goals, including: 

• Reducing Scope 1 and Scope 2 emissions: direct emissions from the company's own and indirect emissions from energy use. 

• Adopt carbon reduction technologies: use renewable energy, improve energy efficiency, and carbon capture and storage technologies.

•  Internal Carbon Pricing: Establish an internal carbon price to factor the future cost of carbon emissions into corporate decision-making, thereby driving emission reduction actions. 

Global warming and CO2 equivalent budget ceiling (carbon budget baseline)

•  50 Gt CO2/billion tons: 

represents a relatively safe temperature rise of about 1°C. 

• 400 Gt CO2/billion tons: 

correlated with the target of 1.5°C temperature rise, but the risk has increased. 

• 450 Gt CO2/billion tons: 

Tipping point, the risk of a 1.5°C increase in global temperature increase is significantly increased.

• 500 Gt CO2/billion tons: 

extremely high risk, global temperature rise may exceed 1.5°C~2.0°C. 

Relationship between global warming and the upper ppm limit of CO2 concentration: 

• 350 ppm CO2: 

This is a relatively "safe" concentration, with a global temperature increase of about 0.75°C. 

• 400 ppm CO2: 

Higher probability of controlling global temperature rise within 1.2°C. 

• 450 ppm CO2: 

1.5°C threshold, beyond which will significantly increase the risk of rising above 1.5°C. 

• 500 ppm CO2: 

Rise to a critical concentration of 2.0°C, exceeding the almost certain global temperature will exceed 1.5°C. 

III. Small and medium-sized enterprises (SMEs) SBTi application eligibility checklist (self-review of application qualifications)         

The download document According to the SBTi Guidelines for SMEs, there are two main parts, which are suitable as a guide for SMEs when setting Science Based Targets initiative (SBTi), and can be used as a resource material on the website of Buzhen Low Carbon Strategy Co., Ltd. The following is a description of the purpose of each section: 

"01. SME_Goal Setting Process": 

1.This section provides step-by-step guidance for SMEs to set science-based targets. The content covers the following steps: 

• Fill out the SME goal setting form. 

• Conduct due diligence and review objectives. 

• The SBTi will review the information for completeness and accuracy, ensuring compliance with standards. 

2.This part is suitable as a guidance document for small and medium-sized enterprises to set carbon reduction targets according to the SBTi process, helping them understand how to apply for carbon reduction targets according to standard requirements and ensure that the targets can be verified based on scientific evidence. 

3."02. SME_Checklist": 

This section provides a target-setting checklist used by SMEs to confirm the conditions that companies need to meet when applying for SBTi, including 

• confirming that greenhouse gas emissions are less than 10,000 tCO2e. 

• The business is not part of a financial institution or the oil and gas industry. 

• compliance with SBTi industry-specific standards. 

4.This section is suitable as a verification tool to help companies understand whether they meet the SBTi target setting conditions for the next step of target application. 

These contents will help companies follow the SBTi's carbon reduction target setting process, with practical guidance on how to use them as "resources" or "support tools" to download. 

IV. SBTi(SME) Small and Medium Enterprise Proposal Q&A (Latest Edition) 

As the issue of global climate change heats up, it has become an inevitable trend for companies to take responsibility for carbon reduction. The SBTi (Science Based Targets initiative) has designed a simplified target-setting pathway for small and medium-sized enterprises (SMEs) to help them achieve their science-based emissions reduction commitments. This article will provide detailed answers to common proposal questions for SMEs, covering processes, regulations, and the latest changes to help companies successfully complete their proposals (please refer to Figure 1.1. SBTi (SMEs) Reduction Target Application Timeline KPIs; Figure 1.2. SBTi (SMEs) timeline Gantt chart).  

1. Why do I need a dedicated SME path? 

Many SMEs struggle to set science-based emission reduction targets due to resource and professional constraints. SBTi's dedicated path helps SMEs: 

• Jump straight to goal setting, skip the commitment phase. 

• Streamline the target validation process and provide standardized tools. 

• Lower data requirements and raise the barrier to participation. 

2. What is the core objective of the SBTi (SME) proposal? 

The SBTi has set two core targets: 

Short-term target: 

• Reduce Scope 1 and 2 greenhouse gas emissions within 5 to 10 years.

•  Long-term net-zero goals: Achieve nearly 100% reductions by 2050, retaining only a small amount of unavoidable emissions, offset through carbon offsets.

 3. What are the steps involved in the proposal process? 

The proposal process is divided into the following steps: 

• Registration and Data Submission: Register and submit emissions data on the Validation Portal. 

• Target Setting: Use the SBTi tool to calculate emission reduction targets and ensure compliance with the 1.5°C pathway.

•  Target Review: The SBTi conducts an audit of approximately 60 days to verify that the target meets scientific standards.

•  Feedback on results: Get approval or revision suggestions. 

4. What are the data requirements for goal setting? 

Enterprises are required to submit the following data: 

• Scope 1 (direct emissions) and Scope 2 (indirect energy emissions) base year emissions data. 

• Scope 3 (supply chain and other indirect emissions) data (disclosure only, not required to set targets unless emissions exceed 40%). 

• Necessary financial and operational information. 

5. What are the new base year requirements? 

Companies can choose 2015 as the earliest base year (replacing the original 2018), providing more flexibility to document and evaluate past emissions reduction progress. 

6. How to calculate the annual emission reduction target? 

The SBTi provides businesses with the following formula: 

7. What if Scope 3 exceeds 40% of total emissions? 

If Scope 3 emissions account for more than 40%, the SBTi requires companies to:

•  Set science-based Scope 3 emissions reduction targets. 

• Accounting and disclosing supply chain carbon emissions and working with suppliers to develop emission reduction strategies. 

8. What is the scope of carbon offsetting?

 Carbon offsets can only be used for long-term net-zero goals and are limited to compensating for small unavoidable emissions, not for short-term targets or annual emission reductions. 

9. Does the proposal require third-party verification data? 

The SME proposal does not mandate third-party verification of emissions data, but companies need to ensure data accuracy and recommend internal or external audit mechanisms to enhance credibility. 

10. How should I renew my proposal after it expires?

 If the verified target expires, the company will need to resubmit the updated emissions data and targets and adjust them using the latest certification standards. 

11. Distinction between Scope 1, 2, and 3 and Disclosure Obligation 

• Scope 1: Direct emissions of enterprises. 

• Scope 2: Indirect emissions from the energy purchased by enterprises. 

• Scope 3: Supply chain and other indirect emissions. Even if Scope 3 targets are not set, companies still need to disclose data to maintain transparency. 

12. How to choose the right service when proposing?

 Enterprises can choose according to the complexity of the goal: 

• short-term target service within about 60 days. 

• Long-term net-zero target services. The verification time is usually more than 60~120 days. 

The SBTi provides SMEs with a scientific, simplified and flexible target-setting path, enabling them to quickly integrate into international decarbonization trends. Through proposals, SMEs can not only enhance their competitiveness but also play a key role in the path of sustainable development. 

V.  Comparative Analysis Table of SBTi Proposal Preferential Selection (SMEs & General SBTi Proposals) 

Comparative analysis of SBTi(SME) and general SBTi carbon reduction target selection, highlighting the advantages of the SME pathway (see Figure 1.3. Comparative analysis table of SBTi proposal preferential selection (SMEs & general SBTi proposals):  

1. Flexibility in Scope 3 Target Setting 

• SMEs: Scope 3 does not require specific targets but still requires a commitment to measure and disclose emissions data unless Scope 3 emissions exceed 40% of total emissions.

•  General SBTi: If Scope 3 emissions exceed 40% of total emissions, science-based Scope 3 targets must be set. 

• Advantages: SMEs reduce the pressure on supply chain-related data collection, making them more suitable for SMEs with limited resources. 

2. No Commitment Required 

• SMEs: Target setting and submission are direct without the commitment stage. 

• General SBTi: Requires submission of a commitment letter and a commitment to complete target setting within 24 months. 

• Advantage: SMEs avoid the commitment process, reducing overall time and simplifying the application process. 

3. Simplified Proposal Process 

• SMEs: Adopt a standardized Validation Portal to directly fill in Scope 1 and 2 data to complete target setting.

•  General SBTi: Requires custom emission reduction calculations and sets Scope 1, 2, and 3 targets according to industry guidelines. 

• Advantages: SMEs have simpler and clearer target calculation and verification steps, making them suitable for small and medium-sized enterprises with limited technical resources. 

4. Lower Verification Costs 

• SMEs: Adopt the latest fixed fee structure of 1,250.USD (approximately €1,000), covering target verification services. 

• General SBTi: Fees increase with the size of the enterprise and the complexity of goal setting. 

• Advantages: SME verification costs are transparent and low, reducing the financial barrier for enterprises to participate. 

5. Public Climate Net Zero Commitment 

• SMEs: After target verification, they can publicly declare that they have "received SBT Climate Net Zero Pathway Endorsement," even if Scope 3 targets are not set. 

• General SBTi: Public declarations can only be made if Scope 1, 2, and 3 targets are fully covered. 

• Advantages: SMEs can achieve international recognition more quickly, enhancing corporate image and market trust.

 6. Flexible Choice of Base Year 

• SMEs: 2015 can be selected as the earliest base year, providing greater retrospectiveness. 

• General SBTi: The base year must meet stricter science-based guidance. 

• Advantage: SMEs have more flexibility in choosing a base year, suitable for companies that have already started decarbonization early.

 7. No Long-Term Target Planning 

• SMEs: Only need to set short-term goals and focus on emission reduction actions within 5-10 years.

•  General SBTi: Requires both short-term and long-term targets, covering Scope 3 and net-zero emissions. 

• Advantages: SMEs reduce the pressure of long-term planning, focusing on currently feasible emission reduction measures. 

8. Application Process Efficiency 

• SMEs: From submission to verification, typically completed within 2-3 months. 

• General SBTi: The target setting and verification process may take 6-12 months. 

• Advantages: SMEs shorten the process time and obtain verification and approval faster. 

9. Low Resource Requirements 

• SMEs: Standardized processes and tools do not require additional technical support. 

• General SBTi: Requires assistance from industry experts in detailed calculations of scope targets. 

• Advantages: SMEs are more suitable for SMEs with limited scale and resources. 

VI. SBTi short-term, long-term targets comparative analysis 

 A comparative analysis of SBTi's short-term and long-term targets, covering the scope of targets, setting requirements, timeframes, and applicability. (Refer to Figure 1.4. Comparison table of SBTi short-term targets & long-term targets):

 Key differentiation 

• target scope: Short-term targets only need to cover areas 1 and 2, while long-term targets need to cover all three areas. 

• Duration: Short-term goals focus on actions within 5-10 years, while long-term goals are comprehensive decarbonization plans for 2050.

•  Applicable Targets: Short-term targets are suitable for enterprises with limited resources and focus on short-term emission reduction; Long-term goals are more suitable for companies planning to achieve net-zero emissions. 

Applicable Recommended 

• Short-Term Targets: Small and medium-sized enterprises (SMEs) or start-ups can be prioritized as a basis for further decarbonization.

•  Long-term goals: Suitable for large enterprises or leading enterprises that have achieved short-term goals and have longer-term carbon reduction planning capabilities.

VII.  Goal setting: initial setting and resetting 

Under the guidelines of the Science Based Targets (SBTi), companies need to scientifically calculate and set their emissions scopes (Scope 1, Scope 2, and Scope 3) when setting short-term or long-term targets. At the same time, the target may initiate recalculation due to changes in conditions during execution. Specifications for initial targeting and recalculation of launch triggers, and specific requirements for Scope 3.

 1. Initial target setting: Scope 3 requirements

 Situation 1: Scope 3 emissions account for less than 40% 

• Specification: At the time of initial target setting, Scope 3 data only needs to be calculated and disclosed. There is no need to set a specific Scope 3 reduction target, which applies when Scope 3 emissions account for less than 40% of total emissions. 

• Operation: SMEs are required to submit complete Scope 3 emissions data as part of their transparency reporting. The document requires a commitment to continue accounting for and reducing Scope 3 emissions in the future. 

Scenario 2: Scope 3 emissions account for 40% or more of the total emissions (Scope 1, 2, 3)

•  Specifications: When Scope 3 emissions account for 40% or more of the total emissions (Scope 1, 2, 3), it is necessary to commit to Scope 3 emission reduction actions, but the setting of specific emission reduction targets can be voluntarily selected according to the situation. 

• Operation: Even without specific targets, companies are still required to submit a commitment to Scope 3 emission reduction actions and plan to gradually strengthen the management and reduction of Scope 3 emissions. 

2. Recalculation of Trigger Conditions: Scope 3 stipulates that 

during the implementation of targets, companies may need to recalculate targets due to operational changes or emission adjustments to maintain scientific and consistent targets. 

Recalculated triggers The trigger conditions for activation include, but are not limited to, the following: 

• Scope 3 emissions exceed 40%: If Scope 3 emissions reach or exceed 40% of total emissions due to business changes (e.g., supply chain expansion), the target needs to be recalculated and supplemented with the Scope 3 reduction target. 

• Major structural changes: such as mergers and acquisitions, corporate restructuring, and the introduction of new production lines.

•  Data or Base Year Changes: Significant changes in emissions data or calculation methodologies in the base year, typically based on a 5% threshold. 

Requirements for Scope 3 recalculation 

• When the proportion of Scope 3 emissions changes and meets the trigger conditions, companies need to: 

• Set specific Scope 3 emission reduction targets and resubmit updated target documents.

•  Ensure that calculations and targets are aligned with the latest standards of the SBTi across all emission areas. 

3. Comparison table of initial setup and recalculation 

VIII. SBTi data requirements and science-based support (SMEs need to be noted when setting Scope 3) 

The Science Based Targets initiative (SBTi) aims to provide science-based guidelines for companies to set decarbonization pathways that align with global climate goals. Accuracy and transparency of data quality are key to achieving these goals, especially in the calculation of Scope 1, Scope 2 and Scope 3 emissions, which are quite stringent. To help companies better understand and comply with these requirements, here are five key data tables that illustrate how they support the success of the SBTi target setting and implementation process. 

Introduction to the process for small and medium-sized enterprises (SMEs) to participate in the Science Based Targets initiative (SBTi). 

SME Streamlined Target Validation Route 

A . Self-check SME SEM qualifications (not subsidiaries of standard path enterprises) 

A1. Size limit: The number of employees of the enterprise is less than 250; the annual turnover does not exceed 50 million euros; Total assets do not exceed 2,500 euros. 

A2.Sectoral Restrictions: Not part of the Mandatory Forest, Land, and Agriculture Sector (FLAG) sector. 

A3.Emission limits: Scope-1 and Scope-2 CO2 equivalents must be less than 10,000 /tCO2e. 

A4.Industry restrictions: Not marine transportation vessels, non-renewable power generation asset industry, financial institutions, oil and gas industry. 

PS. *Special Provisions* SME target setting scope can choose to set only Scope 1 and 2, and the disclosure of Scope 3 emissions must be calculated when proposing and shall not exceed the upper limit of 40% of the total amount (exceeding the Scope 3 reduction target that must be set). 

B. Target Setting Selection Stage 

B1. Near-term Target: Require SMEs to reduce or maintain their absolute direct (Scope 1) and indirect energy (Scope 2) emissions by 2030. The target should be consistent with the latest climate science limiting global warming to 1.5°C above pre-industrial levels, and strive to reduce emissions (Scope 3) as much as possible. 

• Near-term targets refer to the Scope 1 (direct emissions) and Scope 2 (indirect energy-related emissions) greenhouse gas emission reduction targets that should be achieved from the predetermined base year to 2030. SMEs are not required to set near-term targets for Scope 3 emissions as they may lack the resources and capacity to set Scope 3 (indirect emissions from supply chain and product use stage) targets. However, they must commit to inventory and reduce Scope 3 emissions. Options for setting near-term goals include: 

I.   Using 2018 as the base year, reduce Scope 1 and Scope 2 greenhouse gas emissions by 50% by 2030, and inventory and reduce Scope 3 emissions. 

II. Reduce Scope 1 and Scope 2 greenhouse gas emissions by 46% by 2030, using 2019 as the base year, and inventory and reduce Scope 3 emissions.

 III. Reduce Scope 1 and Scope 2 greenhouse gas emissions by 42% by 2030, using 2020 as a base year, and inventory and reduce Scope 3 emissions. 

B2. Near-term maintenance targets: Near-term maintenance targets are designed to enable companies that have achieved Scope 1 and Scope 2 or one of them to achieve zero emissions on a continuous basis and continuously improve. This requires enterprises: 

I.  Follow the GHG Protocol standards and report on their progress annually. 

II. Provide documentation for target validation. 

III. Appropriate maintenance methods can be selected based on their specific emissions profile. 

B3. Net-zero targets: SMEs need to first set near-term science-based targets that align with the 1.5°C pathway before setting net-zero targets, that is, planning to achieve net-zero greenhouse gas emissions in the short term (within 5-10 years) and in the long term. Net-zero target setting requires SMEs to first set near-term targets aligned with the 1.5°C pathway before setting net-zero targets. 

• Net zero targets include:

I.  Science-based long-term targets for Scope 1, Scope 2 and Scope 3 greenhouse gas reductions to be achieved from the predetermined base year to 2050.

II. Commit to eliminating any unreduced emissions after achieving long-term science-based targets. 

• The requirements for SMEs to set net-zero targets include: 

I.  Choose a reduction percentage between 90% and 100%.

II. The base year can be selected as 2018, 2019, 2020, 2021, 2022. 

III. Net zero target year can be selected from any year from 2027 to 2050. 

• For near-term targets and net-zero targets, companies must: 

I. Briefly describe the key operations and activities, as well as Scope 1, Scope 2 and Scope 3 emissions. 

II. Ensure that Scope 1 and 2 emissions are calculated in tCO2e.

III. Confirm that offsets or avoidance of emissions will not be used as a means of achieving near-term targets.

IV. Publicly report emissions and progress towards targets on an annual basis. 

V. For net-zero targets, it should also be confirmed that the impact of any residual emission sources will be neutralized by permanently eliminating the same amount of CO2 from the atmosphere. 

These requirements reflect an understanding of the challenges and limitations faced by SMEs in climate action, aiming to encourage and support these businesses in setting and achieving challenging but feasible emission reduction targets. 

  C. Information filling and submission stage 

C1. Fill in the company's information and contact information: Fill in the company's basic information and contact information in detail in the online goal setting form provided by SBTi, so that SBTi can effectively communicate with the company when necessary. 

C2. Emissions Overview and Target Setting: Provide detailed information about the company's greenhouse gas emissions and fill in the required fields related to near-term targets and/or net-zero targets based on the selected verification service. 

C3. Terms and Conditions: Businesses need to read, agree and sign the SBTi SME Terms and Conditions to confirm their understanding and acceptance of the rules and requirements to participate in SBTi:

•  Notice of Termination: Termination of this agreement may be terminated by you or CDP with 30 days' written notice. No refund or reduction of the total fee will be issued unless it is caused by a material default by CDP or a notice from CDP other than your material default. 

• Copyright and Ownership: CDP owns all rights to the SBTi Verified Materials, and you may not use these documents except as otherwise specified herein. CDP reserves all rights and privileges not expressly granted. 

• Publicity: You agree to allow CDP to publicly state that you are a participant in the Science Based Targets initiative. The inclusion of the CDP or SBTi designation in any news release or publication requires written consent from CDP. The use of the CDP Marks on your website, any marketing materials, or your products also requires CDP's written consent. 

• Liability: CDP shall not be liable for any indirect, incidental, special, consequential, or punitive damages. In any event, CDP's total liability under this Agreement shall be limited to the total amount actually received by CDP under this Agreement.

•  Confidentiality and Responsibility: You must not disclose confidential details of the verification document or process to any third party unless they have been made public. You will be responsible for any losses, costs, damages or expenses that CDP may suffer or incur as a result of your willful misconduct or your use of the materials and materials provided to you as part of the SBTi initiative. 

• Priority: If these terms conflict with the information provided in the SME Science Base Goal Setting Form, these terms will take precedence. In addition, the document also contains information such as the service options that the business needs to fill out, whether to apply for a fee waiver (only for eligible businesses), company signature, headquarters location and date. 

C4. Submit the application: After ensuring all necessary information is completed, submit the target verification application form.   

D. Review and Verification Stage 

D1. Review and Approval: The SBTi will review the submitted application, which usually takes 10 business days. The purpose of the review is to verify the accuracy and completeness of the information and data provided by the enterprise. 

D2. Pay Fees (if applicable): If the application is approved, businesses will pay corresponding fees based on their geographical location and financial situation. Eligible SMEs can apply for fee waivers (not applicable to Taiwan as a non-developing country). 

• Fee description: 

1.New near-term target or replacement of previous near-term target: $1250 USD

2. Set a new net-zero target only (only for companies that have set a 1.5°C near-term target): $1250 USD

3.Set both near-term target and net-zero target: $2500 USD 

4.These fees are lower than the standard fees ($9,500 USD for near-term or net-zero targets alone, $14,500 USD for near-term + net-zero packages) and are available to companies headquartered in developing countries and countries with economies in transition as defined by the Department of Economic and Social Affairs of the United Nations Secretariat. These companies can apply for a waiver of the target filing fee. 

E. Confirmation and Release Phase 

E1. Receive Final Confirmation and Communication Package: Businesses will receive a final confirmation email from the SBTi, containing the communication package and details of the target release. 

E2. Target Release: Corporate emissions reduction targets will be publicly published on the SBTi website and the We Mean Business Coalition Pledge website, and SMEs participating in the UN Global Compact will receive additional recognition. 

F. Ongoing Participation and Reporting

 F1. Annual Progress Reports: Companies are required to regularly (usually annually) report their greenhouse gas emissions and progress towards the set targets to the public and the SBTi. 

G. Additional Climate Action 

G1. Climate Action Beyond the Value Chain: The SBTi encourages businesses to invest beyond their science-based targets to help mitigate climate change in other parts of the world. 

G2. SME Climate Hub: SME Climate Hub is a non-profit global initiative that aims to empower small and medium-sized enterprises (SMEs) to take climate action and build resilient business models for the future. The platform was launched by the We Mean Business Coalition, the Exponential Roadmap Initiative, and the United Nations Race to Zero campaign, in collaboration with Normative and the Net Zero team at the University of Oxford. 

1.The main goals of the SME Climate Hub include: Promoting emission reduction for small and medium-sized enterprises: By providing tools and resources to help companies halve emissions by 2030 and achieve net zero emissions by 2050, and require companies to report their progress annually. 

2.Improving Efficiency and Managing Business Risks: Encouraging businesses to reduce costs by managing resources more efficiently while resilient business models to withstand climate-related damage, disruptions, and shutdowns. 

3.Gain a competitive edge: Become a leader in the fight against climate change, showcasing the ambitious goals your business has set to investors, employees, and customers. 

4.Enhanced Access to Capital: Maintain the affordability of insurance and loan fees by reducing climate-related risks exposed, remaining attractive to investors.

5. Grow Business and Brand: Be part of a network of like-minded businesses and gain opportunities for brand growth and attracting new customers. 

• The SME Climate Hub also encourages businesses to go beyond their value chains and invest beyond science-based targets to help mitigate climate change in other parts of the world. These investments should complement, not replace, deep emissions reduction efforts. 

• The platform's goal is to work with thousands of companies and governments around the world to achieve net-zero emissions by 2050 and participate in the "Race to Zero" event, the United Nations High-Level Champion on Climate Change. By committing to reducing emissions, businesses will be counted in this global movement.

•  SME Climate Hub provides a platform and resources to help SMEs understand and participate in global climate action, building future-proof, resilient business models by setting and achieving science-based emission reduction targets. 

Through this detailed process, SMEs can clearly understand how to participate in SBTi, from target selection, information filling and submission, to audit verification and final confirmation, and how to take additional climate actions while achieving emission reduction targets. This not only helps companies combat climate change but also enhances their brand image and market competitiveness in terms of sustainable development.  

What are the stages at which small and medium-sized enterprises (SMEs) can use the SBTi logo to declare to the outside world? How much time is required from the application date? 

After SMEs apply to participate in SBTi to receive the "final confirmation" and "communication package", the SBTi's official website and the name of the SME are announced, that is, the time between the SME's application for SBTi and receiving the final confirmation and communication package may vary depending on a number of factors, including the complexity of the application, the efficiency of the SBTi's review, and whether the information submitted by the company is complete and accurate. According to the SBTi's standard process, the following is a rough time frame:

1. Inventory process after submitting the application: 

After the company submits the target setting application, the SBTi will conduct an initial review and inventory, which usually takes about 10 business days. The length of this stage mainly depends on the quality and completeness of the application. 

2.Review and Approval: After passing the initial review, the SBTi conducts a more in-depth review to verify the company's emission reduction targets. The timing of this stage can vary depending on the specific situation, but it can usually take a few weeks to several months to complete, assuming everything is going well. This includes waiting times and possible back-and-forth communication time to ensure that the targets meet the requirements of the SBTi. 

3.Pay the fee (if applicable): Once the target is approved, the business receives an invoice for the target validation service. Once the business has completed the payment, it will need to send the payment confirmation to the SBTi. The length of the payment process depends on the company's payment efficiency and how quickly the SBTi confirms the payment.

4. Receive final confirmation and communication package: After confirming the payment information, the SBTi will send the final confirmation and communication package to the business. This step is usually completed within a few days to a week after payment confirmation. 

In summary, the entire process from the start of the application to the receipt of the final confirmation and communication package can range from a few weeks to several months, depending on the complexity of the review process and the efficiency of communication between the business and the SBTi. It is important that businesses ensure that they provide complete and accurate information during the application process and maintain good communication with the SBTi to help expedite the review and approval process.  

When small and medium-sized enterprises apply for SBTi, at what stage do they need to pay $1,250? 

Small and medium-sized enterprises (SMEs) are required to pay a fee of $1,250 after submitting their application during the review and verification phase and once the application is approved, as part of the SBTi process. Specifically, this stage occurs after the SBTi conducts an initial review and inventory of the submitted targets. If the company's target setting application meets the requirements and is approved, the SBTi will send the business an invoice for the target validation service, at which point the company needs to complete the payment according to the invoice instructions. 

Overview of payment timing:

•  Wait for review after submitting the application: After submitting the target setting application and related documents, the company needs to wait for the SBTi to review. This process usually takes about 10 business days. 

• Invoice Received: Once the application is reviewed and approved, SBTi will issue an invoice to the business for the Target Verification Service. The invoice will clearly indicate the fee to be paid (e.g., $1,250) and the payment method. 

• Make payment: After receiving the invoice, the business should follow the instructions to complete the payment of the fee within the specified period. 

• Send payment confirmation: After the payment is completed, businesses need to send the payment confirmation to the email address specified by the SBTi to confirm the completion of the payment process. 

Note: 

• Companies can apply for fee waivers if they meet certain conditions, such as being headquartered in developing countries and countries with economies in transition as defined by the United Nations, and whose annual income is below a certain threshold (not applicable in Taiwan). 

Businesses should maintain communication with the SBTi throughout the process to ensure that they are aware of any issues or changes that may arise and operate in accordance with the SBTi's guidelines and requirements.