SBTi (Science Based Targets initiative) is an international initiative that aims to help companies set science-based climate targets in line with the Paris Agreement and reduce their emissions. The CSRD also sets requirements for companies to establish emission reduction targets, and emission reduction targets in line with the SBTi also meet the requirements of the CSRD.
When a company commits to the requirements of the SBTi, it can choose either a short-term target or also commit to a net-zero target. The short-term target covers the next 5-10 years, during which the company commits to reducing emissions in line with the 1.5-degree target. For the net-zero target, the target year is typically between 2040 and 2050, depending on the industry in which the company operates. With the net-zero target, the company commits to reducing its emissions by more than 90% compared to the base year. The SBTi and emission reduction targets vary slightly by sector, and specific guidelines and targets exist for certain energy-intensive industries. For SMEs, committing to the SBTi initiative is simpler and faster than it is for larger companies.