ISO 14068-1 Carbon neutrality vs. SBTi science-based target reduction difference 

I .Introduction: Why Companies Need to Understand Carbon Neutrality and SBTi 

As the global climate crisis intensifies, "carbon reduction" is no longer just an environmental slogan but a specific requirement imposed on companies by government policies, international capital markets, and cross-border supply chains. According to the Paris Agreement, global warming must be controlled within 1.5°C to avoid irreversible impacts on human society and the economy from extreme weather and systemic risks. This means that regardless of the size of the company, it must demonstrate clear and verifiable carbon reduction actions and responsibilities. 

Among the many carbon reduction pathways, the two most commonly mentioned tools are ISO 14068-1 Carbon Neutrality Declaration and the SBTi Science Based Targets initiative. Both are closely related to carbon management, but they differ significantly in their nature, application scenarios, and impact on enterprises. If companies fail to clarify, they often mistakenly believe that obtaining a "carbon neutrality" statement is equivalent to completing long-term carbon reduction commitments, leading to deviations in strategic planning. This article will clearly compare the similarities and differences between carbon neutrality and SBTi through systematic analysis, accompanied by tables and case studies, to help companies quickly grasp which path to prioritize or how to use both to establish a sustainable strategy that balances short-term results and long-term competitiveness 

II. ISO 14068-1 Carbon Neutrality 

1. Definitions and Standard Sources 

ISO 14068-1:2023 is the latest standard officially released by the International Organization for Standardization (ISO) in 2023 and the world's first international standard for carbon neutrality. The main purpose of this standard is to establish a consistent and verifiable framework so that different organizations, products, or activities can follow the same logic and procedures when declaring carbon neutrality, avoiding confusion caused by ambiguous definitions.

 ISO 14068-1 can be regarded as a "universal language" in the field of carbon neutrality. In the past, many companies or activities claimed to have achieved carbon neutrality, but their methods and scope varied greatly, with some emphasizing the purchase of carbon credits and others only partially reducing carbon emissions, making it difficult for the outside world to judge their credibility. ISO 14068-1 aims to address this issue by ensuring transparency, consistency, and verifiability in carbon neutrality claims through standardized specifications. Technically, ISO 14068-1 is closely linked to other climate-related standards: 

• It uses ISO 14064-1:2018 (Greenhouse Gas Inventory and Reporting) as the basis for emission calculations, ensuring that carbon neutrality is based on reliable data inventory; 

• it is interconnected with standards such as ISO 14067 (Product Carbon Footprint) and ISO 14064-2 (Project-Level Reduction), allowing it to be applied at different levels such as organizations, products, and projects; 

• it also integrates with international carbon credit market offset regulations (such as Verra, Gold Standard, CIX, etc.), stipulating how to properly use and cancel carbon credits to offset unavoidable emissions. 

Overall, ISO 14068-1 is not just a technical standard but a trust mechanism. It allows companies to have an internationally recognized certificate when declaring carbon neutrality and can be verified by third-party fact-checking agencies to avoid greenwashing concerns and enhance ESG ratings and brand credibility. 

 2. Core Spirit 

Under the framework of ISO 14068-1, carbon neutrality is not simply an "inventory + offset" operation but a process that must be incorporated into long-term management and planning. This means that companies cannot only purchase carbon credits to offset emissions in the target year but must have a systematic roadmap to gradually demonstrate carbon reduction performance and ensure sustainability through management mechanisms. 

(1) Strategy and Governance Framework 

• Companies should establish a carbon neutrality strategy and incorporate it into their sustainability and risk management policies. 

• Senior management must clearly assume responsibilities and establish dedicated departments or cross-departmental teams to promote carbon reduction projects and track progress. 

• Incorporate carbon neutrality into KPIs and performance management, making carbon reduction actions a part of the organization's daily operations. 

 (2) Roadmap Design 

• The carbon neutrality path should start from the base year data and clarify the reduction targets for each stage of the plan to the target year. 

• A phased strategy of "short-term, medium-term, and long-term" can be adopted, such as: short-term: energy efficiency improvement, equipment replacement; Medium-term: Renewable energy procurement (green power certificates, PPA contracts); Long-term: Introduction of low-carbon technologies (such as carbon capture, electric transportation).

•  Each stage needs to be matched with quantitative goals to avoid stopping only at the level of vision or declaration. 

 (3)Continuous reduction vs. carbon credit offsetting 

• ISO 14068-1 clearly emphasizes the principle of "reduction before offset". 

• The focus of the carbon neutrality and management path is not to rely entirely on carbon credits, but to gradually reduce the proportion of dependence on offsets. 

• This prevents companies from being questioned about "greenwashing" and demonstrates a genuine determination to transform. 

(4)Integration of carbon neutrality and corporate decision-making

•  Enterprises should incorporate carbon neutrality pathways into investment decisions and capital expenditure planning, such as considering carbon emission benefits when evaluating new plants or equipment.

•  In supply chain management, suppliers are gradually required to cooperate in incorporating Scope 3 emissions into the neutrality strategy. 

• This ensures that carbon neutrality is not just an "internal achievement" but also drives the entire value chain towards net zero. 

(5) Regular Review and Continuous Improvement 

• ISO 14068-1 requires companies to review progress annually and adjust the path if necessary. 

• Reports and results should be publicly disclosed and subject to external review to ensure transparency. 

• This circular mechanism allows carbon neutrality to be not just a one-time declaration but a continuously optimized management system.

 "Carbon neutrality and pathways" is the soul of ISO 14068-1. It requires companies to view carbon neutrality as a long-term transformation process rather than a single certification action. Only by establishing a clear strategy, planning phased reductions, reducing dependence on carbon credits, and continuously reviewing and improving can carbon neutrality declarations truly gain the trust of the public, investors, and supply chains.   

3. Application Scenarios 

ISO 14068-1 is characterized by its flexibility and operability, making it suitable for different types of organizations and needs, especially in the following scenarios: 

(1)Government buildings or public buildings

•  Public agencies need to demonstrate climate responsibility to society and citizens. 

• For example, the Taipei City Council set 2024 as the base year, achieved carbon neutrality goals by 2025, and completed verification and public declaration in 2026, echoing the city's net-zero policy through carbon neutrality statements.

(2) Event Carbon Neutrality 

• Carbon emissions from large-scale conferences, exhibitions, or sporting events are usually concentrated and short-term. 

• Organizers can use ISO 14068-1 to inventory emissions (transportation, venue electricity, food and beverage consumption, etc.) during the event, and reduce and offset them to achieve "event carbon neutrality" and enhance brand image and international visibility. 

(3)Only product or service 

• brands can calculate their carbon footprint for specific products (such as cosmetics, food, electronics) and declare carbon neutrality in accordance with ISO 14068-1. 

• This helps strengthen ESG communication with consumers, such as "carbon-neutral packaging," "carbon-neutral coffee," or "carbon-neutral transportation services." 

(4)Short-term declarations for SMEs 

• SBTi have a higher barrier to entry for SMEs with limited resources, while ISO 14068-1 offers a more viable option.

•  Small and medium-sized enterprises can first complete the base year inventory and achieve carbon neutrality declaration in the short term through partial reduction and carbon credit offset, build market trust, and then gradually shift to longer-term science-based reduction targets. 

 4. Advantages and Limitations 

Advantages:      

• Clear procedures: Follow ISO standards with clear processes and certification requirements, allowing companies to get started quickly. 

• Significant Short-Term Results: Suitable for units that need to quickly demonstrate ESG results, such as the public sector, brand-side events, or small and medium-sized enterprises. ·   

• High international credibility: Obtaining an ISO third-party verification statement can be used as a credible endorsement in domestic and foreign markets to avoid greenwashing concerns. 

• Wide range of applications: It can be used not only for organizations but also for products, projects, construction, or events, making it highly flexible. 

Restrictions: 

•  Limited carbon reduction efforts: In practice, carbon credit offsets are often relied upon, and if they are not combined with long-term emission reduction strategies, it is easy to be questioned as just a "carbon neutrality appearance".     

• Focus on Achievement Display: Most applications focus on "declaration" and "verification", with weak requirements for long-term transformation or supply chain management.      

• External Perception Differences: In international supply chains, ISO carbon neutrality statements are generally less impactful than SBTi, and investors or large brands place more emphasis on long-term carbon reduction commitments. 

Case description:

The Taipei City Council is a typical case. It has a base year of 2024 and a carbon neutrality target year of 2025, with plans to complete ISO 14068-1 verification and public declaration by 2026. This model mainly achieves the overall "net zero" effect through short-term reductions (such as LED energy conservation, partial green electricity procurement) and carbon credit offsets. This approach is suitable for public institutions or companies that need quick results, but if placed in the international investment market, it still needs to be paired with a longer-term carbon reduction path to gain higher recognition. 

III .SBTi Science Based Targets initiative 

1. Definition and Background

 The Science Based Targets initiative (SBTi) is a global initiative jointly launched by major international sustainability organizations. Its founding units include: 

• CDP (Carbon Disclosure Project): the world's largest climate disclosure platform; 

• World Resources Institute (WRI): Focusing on sustainable resource and policy research; 

• World Wide Fund for Nature (WWF): an international organization that promotes ecological and climate protection;

•  United Nations Global Compact (UNGC): An international platform that advocates corporate social responsibility and sustainable development. 

The SBTi's core mission is to help companies set science-consistent carbon reduction targets and ensure that their actions meet the warming limits set by the Paris Agreement, which limit global warming to 1.5°C and well below the 2°C threshold. 

Unlike ISO 14068-1, the SBTi is not a "standard document" but rather an initiative and review mechanism. After setting carbon reduction targets, companies must submit them to the SBTi for official review. Companies that pass the review will be publicly included in the SBTi's official website and become "climate leaders" recognized by international investors, supply chains, and consumers. Currently, thousands of companies around the world have joined SBTi, including many multinational brands and supply chain core players. For companies, approval through the SBTi is not just an environmental commitment, but also an international passport: 

• it helps win the favor of investors and improve ESG ratings; 

• Maintain qualifications in supply chain competition and not be eliminated; 

• Through long-term carbon reduction planning, enhance the competitiveness of enterprises in the net-zero era. 

 2. Core 

(1)Ethos (Targets) 

• The SBTi requires companies to set carbon reduction targets within 5–10 years to ensure that actions are not commitments in the distant future, but actual plans that start immediately. 

• In the case of manufacturing, for example, the SBTi recommends reducing emissions by at least 42% by 2030 (compared to the base year) to meet the 1.5°C warming pathway. 

• Near-term goals should not only be numerical but also include comprehensive carbon reduction strategies and measures, and track and publicly disclose progress annually. 

(2)Net-zero Targets :

• In addition to near-term targets, the SBTi also requires companies to commit to achieving full net zero by 2050. 

• The so-called "net zero" does not rely solely on carbon credit offset, but requires companies to complete deep decarbonization in the long term, reduce their own emissions to extremely low levels, and then offset the remaining small emissions. 

• This design ensures that the company's commitment aligns with the global 1.5°C scientific path, rather than a mere "financial operation." 

(3)Scope Coverage:

•  The SBTi requires companies to cover Scope 1 (direct emissions), Scope 2 (indirect energy emissions), and Scope 3 (upstream and downstream value chain emissions).

• If Scope 3 accounts for more than 40% of a company's total emissions, it should cover at least two significant categories to ensure that the emissions responsibilities of supply chains and downstream customers are included.

 The core spirit of the SBTi is for companies to progressively promote deep decarbonization based on science and to accept external scrutiny through transparent disclosure. Its focus is not on "carbon neutrality achievements in a given year" but on "a sustainable and verifiable long-term carbon reduction path." 

3. Requirements and Specifications 

The SBTi establishes clear requirements and norms to ensure that corporate commitments align with global climate science. These requirements cover emissions scopes, offset principles, review procedures, and specific requirements for different industries: 

(1)Scope Coverage 

• Scope 1 (Direct Emissions): Direct emissions from companies, such as fuel combustion, factory processes, and company vehicle emissions. 

• Scope 2 (Indirect Emissions from Purchased Energy): Indirect emissions from the purchase of electricity, steam, heat or cold energy. 

• Scope 3 (Value Chain Emissions): Covers emissions from the upstream and downstream value chains of the enterprise, including supplier raw materials, logistics and transportation, product use and disposal, etc. 

• Requirements: If Scope 3 emissions account for more than 40% of a company's total emissions, they must be included in the carbon reduction target and cover at least two significant categories, preventing companies from taking action only on Scope 1 and 2 while ignoring the actual impact of the supply chain. 

(2)Offsetting Principles 

• The SBTi strictly restricts the use of offsets, stipulating that companies should not use offsets as the primary means of short-term goals. 

• Offsets can only be used at the stage where the Net-zero Target is finally achieved, and at a limited rate. 

• Offsets can only be used to deal with "residual emissions that are technically difficult to avoid or eliminate", such as specific industrial processes or air transportation. 

• This ensures that companies focus on absolute emission reduction rather than simply purchasing carbon credits. 

(3)Validation Process 

• Companies are required to submit their carbon reduction targets to the SBTi, which will be evaluated by an official review panel. 

• The SBTi checks that the target is consistent with the scientific path of 1.5°C or "well below 2°C". 

• Companies that pass the review will be publicly listed on the SBTi's official website and must regularly disclose progress reports for external review. 

(4)Sector-specific Standards 

1. • The SBTi provides specific guidelines (SDAs) for different industries, such as: 

   • energy and power sector: must meet the proportion of renewable energy and electricity decarbonization targets;

   •  Transportation and logistics industry: formulate specific reduction requirements for transportation modes (road, sea, aviation); 

   • Financial industry (FI SBTi standard): must include carbon emissions in investment portfolios and set "investment-driven carbon reduction targets"; 

   • Construction and real estate: Emissions from building operations and material lifecycle need to be calculated. 

   • These industry norms ensure that companies across different sectors are aligned with global decarbonization pathways in the right way. 

The SBTi's requirements are stricter than ISO 14068-1, which emphasizes "comprehensiveness" and "scientific consistency." Whether it's scope, offset principles, or industry-specific regulations, it highlights its core philosophy that companies must prioritize substantial carbon reduction and transparently undergo international review and supervision. 

4. Advantages and Limitations : 

 Advantages:

(1)Internationally recognized credibility 

• The SBTi is one of the world's most influential carbon reduction initiatives, and companies that pass the review are included in the official list, which is highly persuasive to investors, customers, and supply chains. 

• In the field of international ESG ratings and sustainable finance, the SBTi is often regarded as an important indicator of whether corporate climate commitments are credible. 

(2)Driving Enterprises to Reduce Substantial Carbon Emissions

•  The SBTi emphasizes decarbonization, not allowing companies to rely solely on carbon credit offsets, ensuring that carbon reduction results come from actual actions. 

• This helps avoid "greenwashing" and enhances the brand's sustainable image and market trust. 

(3)Enhancing supply chain and market competitiveness

•  Many multinational manufacturers (such as Apple, Microsoft, Nike) require supply chain members to submit or commit to SBTi. 

• For export-oriented or supply chain dependent businesses, passing SBTi could be a "ticket to entry." 

(4)Aligning with investor needs 

• International investment institutions are increasingly paying attention to corporate carbon reduction commitments, and SBTi can be used as an important tool to attract green investment and reduce capital risks. 

Limitations: 

(1)High Threshold 

• SBTi requirements cover Scope 1, 2, and most Scope 3, with high requirements for data integrity and transparency. 

• SMEs often lack data collection capabilities and resources, making it difficult to meet all regulations at once.

(2) Long-term Commitment, High Resource Consumption

•  Passing SBTi means that companies need to continuously invest in manpower, finance, and technology, and regularly disclose progress. 

• For some companies, this can be a heavy management pressure.

(3) Industry Differences Challenges 

• Different industries have different specific regulations (e.g., the financial industry needs to calculate portfolio emissions, and the manufacturing industry needs to set up process carbon reduction), making compliance more difficult for diversified companies. 

Case Study: For example, large Taiwanese companies such as Delta have committed to planning for short-term (pre-2030) and long-term (pre-2050) carbon reduction along the 1.5°C pathway, which has been approved by the SBTi. This not only strengthens its position in the international supply chain but also demonstrates its sustainable competitiveness in the investment market 

IV. Core Similarities and Differences between Carbon Neutrality and SBTi

 In practice, companies often confuse ISO 14068-1 carbon neutrality with SBTi science-based reduction targets, thinking that the two are the same tools. In fact, although they all have a "net zero" ultimate vision, their essence, application scenarios, and external influences are significantly different. If we want to understand both deeply, we must analyze them from both perspectives of similarities and differences.

 1. Similarities: An international framework for the common pursuit of net zero 

First of all, the biggest commonality between carbon neutrality and SBTi is that both have the ultimate goal of achieving net zero. 

• Global Recognition: Both are internationally recognized mechanisms that enhance a company's ESG credibility and gain the trust of stakeholders in the international market. 

• Third-party review: Both ISO 14068-1 and SBTi require the intervention of external review bodies to prevent companies from "talking for themselves." ISO is certified by an independent inspection body, while SBTi is officially reviewed and publicly listed. 

• Sustainability Strategy Linkage: Both can be used as part of a company's ESG strategy, responding to the Paris Agreement's 1.5°C goals and the United Nations Sustainable Development Goals (SDGs), and demonstrating corporate climate responsibility.

 In other words, no matter which path a company chooses, it can establish a "credible carbon reduction commitment" for itself and add points to its brand image, capital markets, and supply chain management. 

2. Differences: Short-term declarations vs. long-term commitments 

Despite sharing the same vision, the two differ significantly in core design:  

3. Comprehensive Explanation 

• In terms of time, ISO 14068-1 is positioned like an "annual report card", which can quickly show that an organization has reached carbon neutrality in a given year, but it may not guarantee long-term carbon reduction efforts. The SBTi is more like a "long-term contract" that requires companies to continue to reduce carbon emissions over the next 5–25 years, aligning with the scientific path.

•  In terms of carbon reduction methods, ISO allows for the "reduction + offset" method to meet the target, so it is often applied to short-term declarations, such as carbon neutrality for an event or building; The SBTi emphasizes "real emission reductions," with strict restrictions on the use of offsets to ensure that companies are not just buying carbon credits, but gradually decarbonizing.

•  In terms of scope, ISO provides flexibility, and companies can only inventory and declare for Scope 1 and Scope 2. However, the SBTi requires comprehensive coverage of Scope 1–3, with a particular emphasis on Scope 3's upstream and downstream supply chain responsibilities, which are critical for companies in export-oriented or international supply chains. 

• In terms of stakeholder influence, ISO 14068-1 carbon neutrality statement has a strong positive effect on government units, general consumers, and brand image management. However, in capital markets and supply chain management, SBTi's influence is even greater because it is the most important carbon reduction commitment for investors and multinational companies. 

4. Complementary rather than substitute In general, ISO 14068-1 and SBTi are not mutually exclusive, but can form a complementary relationship:

•  Short-term: Enterprises can first complete carbon neutrality declarations through ISO 14068-1 and quickly respond to policies, bids, or brand needs.

•  Long-term: Set science-based reduction targets through the SBTi to establish international commitments for sustainable carbon reduction. 

This "dual-track strategy" can help companies demonstrate results in the short term while taking into account long-term competitiveness, which can not only meet the expectations of the public, but also respond to the requirements of investors and supply chains. 

V . How should enterprises choose? 

Many companies often have questions when planning their carbon reduction strategies: "Should we choose ISO 14068-1 carbon neutrality or SBTi science-based reduction targets?" In fact, the two are not mutually exclusive, but complementary tools. The key lies in the stage the enterprise is in, the sources of external pressure, and its own resource conditions. 

1. Short-term Needs: Quickly demonstrate results 

• Suitable for: Businesses and organizations that need to respond immediately to government regulations, bidding requirements, CSR reports, or brand image.

•  Strategic Recommendation: You can first make a carbon neutrality declaration in accordance with ISO 14068-1, and quickly obtain a third-party inspection statement through base year inventory, short-term reduction, and offset mechanisms.

•  Effect: This can effectively strengthen the company's social responsibility image in the short term and meet the expectations of customers or consumers for "carbon neutrality". 

2. Long-term Competitiveness: Building International Trust 

• Suitable for: Companies aspiring to become members of multinational supply chains, attracting international investment, or pursuing ESG rating enhancements. 

• Strategic recommendation: SBTi should be introduced to set a long-term reduction pathway in line with 1.5°C, covering Scope 1, 2 and most Scope 3, and pass the official review. 

• Effect: This not only responds to increasingly stringent investor demands but also avoids being marginalized in international competition due to non-commitment to SBTi. 

3. Dual-track strategy: Balancing immediate image and long-term transformation 

• Suitable for: Enterprises with short-term external pressures and must focus on long-term sustainability. 

• Strategic Recommendation: Complete the carbon neutrality declaration through ISO 14068-1 to quickly establish brand and external trust. The SBTi will be gradually introduced to integrate short-term and long-term carbon reduction targets into corporate operations and supply chain management. 

• Effect: This can form the best combination of "immediate results + long-term commitment", which can not only gain short-term recognition, but also accumulate long-term competitiveness.

 4. Size and Industry Considerations 

• for SMEs: With limited resources, it is recommended to start with ISO 14068-1 to accumulate data foundation and management capabilities, and then gradually transition to SBTi.

•  Large corporations vs. multinational corporations: Often both must be adopted to demonstrate long-term commitment to international investors and gain an advantage in short-term ESG ratings or procurement bids. 

• Brand side and consumer goods industry: carbon neutrality declarations are more likely to be converted into consumer recognition; The SBTi increases supply chain transparency and avoids questioning greenwashing. 

For companies, the question is not "which one to choose", but "how to combine the two". ISO 14068-1 provides short-term verifiable results, while SBTi is a long-term credible commitment. Only by flexibly using these two tools can companies take into account current market needs and future international competitiveness on the road to sustainable transformation.   

 VI . Case Sharing 

1. Public Sector Case: The Depository Center (Taiwan Depository and Clearing House) 

The Depository Center is an important institution in Taiwan's financial infrastructure and has taken the lead in completing the carbon neutrality declaration, becoming a typical case of using ISO standards to promote carbon reduction in the public sector. Its operation mode can be summarized as follows: 

• According to ISO 14064-1 Inventory, the Greenhouse Gas Emissions Depository Center first establishes a complete emission inventory, covering Scope 1 (direct emissions), Scope 2 (indirect electricity emissions), and some Scope 3-related activities to ensure data transparency and traceability. 

• Carbon neutrality verification according to ISO 14068-1 On the basis of the inventory, the TDCC plans carbon neutrality management and action paths in accordance with the requirements of ISO 14068-1, and a qualified third-party inspection agency issues an inspection statement to ensure that the results are internationally recognized.

•  Set a base year and target year with 2024 as the base year and 2025 as the target year for carbon neutrality. Relevant carbon reduction measures will be launched simultaneously with the offset plan, and it is planned to complete verification and public announcement in 2026 to enhance the trust of the public and stakeholders. 

• Reduction + carbon credit offset model In terms of reduction, the TDCC promotes energy-saving lighting updates, improves energy efficiency, and introduces some renewable energy. Residual emissions that are difficult to eliminate in the short term (approximately 1,396 tCO₂e) are offset by purchasing and canceling internationally qualified carbon credits (such as Gold Standard or Verra). 

This case highlights the practical application value of ISO 14068-1 in the public sector. It can help institutions demonstrate "carbon neutrality results" in the short term, which is not only in line with national policy directions, but also demonstrates the climate responsibility of governance units externally. 

 2. Corporate Cases: Delta Electronics 

Delta was one of the first companies in Taiwan to actively respond to international carbon reduction initiatives and was one of the first companies in China to pass the SBTi (Science Based Targets initiative) review. Its experience demonstrates the company's practical operations and international influence in long-term carbon reduction commitments. 

• Passed the SBTi review and committed to a 1.5°C carbon reduction pathway 

Delta has been officially approved by the SBTi, setting short-term (2030) and long-term (2050) carbon reduction targets, committing to align its emission path with the global 1.5°C warming limit. This makes it one of the companies highly trusted by investors and international supply chains. 

• Comprehensive Coverage of Scope 1, 2, and 3 

Emissions Delta's carbon reduction targets not only cover its own plants and energy use (Scope 1 and 2) but also include upstream and downstream supply chains (Scope 3). This means that the company must promote joint carbon reduction from its partner suppliers to meet the requirements of international brands for carbon management across the entire value chain. 

• Energy Transition and Renewable Energy 

Introduction Delta actively promotes the use of renewable energy and has committed to RE100 to gradually increase the proportion of green electricity used in its global sites. At the same time, it continues to invest in energy-saving technologies and smart energy management to ensure that its operations and products meet low-carbon requirements. 

• Product Innovation Drives Market Influence 

As a global leader in power management and energy-saving solutions, Delta extends its carbon reduction philosophy to product design, launching high-efficiency power modules and smart building solutions to help customers reduce energy consumption and carbon emissions, and expand their carbon reduction impact. 

Delta's case highlights the long-term characteristics of the SBTi. Unlike the single target year declaration of ISO 14068-1, the SBTi represents a continuous international commitment, driving companies to deepen their efforts in supply chain management, energy transition, and product innovation to maintain their leadership position in the international market 

VII . Conclusion

 Carbon neutrality (ISO 14068-1) and SBTi (Science Based Targets) may seem similar, but they are clearly differentiated in essence: the former favors short-term outcomes, while the latter represents long-term commitments. 

• ISO 14068-1 Carbon Neutrality provides "point-in-time verification", emphasizing the completion of emission inventory, reduction measures, and carbon credit offsets between the base year and the target year, and the results are verified by a third party and finally disclosed to the public. It is suitable for organizations, events, products, or SMEs to demonstrate carbon reduction actions in the short term, quickly responding to government regulations, bidding demands, or brand image management. 

• The SBTi Science Based Targets are a "sustainable pathway to carbon reduction" that requires companies to set short-term and long-term targets for 5–25 years based on 1.5°C temperature control, covering Scope 1, 2, and 3 emission sources. Companies that pass the SBTi review are highly recognized by international investors, multinational supply chains, and ESG rating agencies, and are an important indicator for global capital markets to measure their sincerity in reducing carbon emissions. 

In terms of decision-making, if companies only stay in carbon neutrality, although they can be recognized in the short term, they are easily questioned about the lack of depth of carbon reduction. If you only pursue SBTi, you may ignore short-term social expectations or market pressures due to its high threshold and long-term nature.

 Therefore, the best strategy is not to "choose one of the two", but to flexibly combine the two based on industry characteristics, enterprise size, and stakeholder needs: 

• based on carbon neutrality (ISO 14068-1): first demonstrate visible results to establish market trust and brand influence; 

• Take SBTi as a long-term commitment: gradually introduce science-based reduction targets to enhance international competitiveness and investment attractiveness. 

Ultimately, whether it is carbon neutrality or SBTi, the purpose is not to obtain a certificate or a list, but to truly promote the low-carbon transformation of enterprises. Only by combining short-term results with long-term commitments can companies find a competitive advantage in sustainable development and become a leader in the net-zero transition in an era of rising climate risks.