SBTi: What Irish Businesses Need to Know About Science-Based Targets

The Science Based Targets initiative (SBTi) has become the definitive framework for corporate climate target-setting. For Irish businesses facing tightening regulation, supply chain pressure, and investor scrutiny, setting science-based targets is no longer optional — it is becoming a baseline expectation. But the process is technically demanding, the requirements are precise, and the consequences of getting it wrong range from failed validation to regulatory exposure and lost commercial opportunities.

What the Science Based Targets Initiative Is

SBTi is an independent, non-profit body established in 2015 as a partnership between five organisations: CDP (formerly the Carbon Disclosure Project), the United Nations Global Compact (UNGC), the World Resources Institute (WRI), the World Wide Fund for Nature (WWF), and the We Mean Business Coalition.

Its purpose is straightforward: define and promote best practice in science-based target-setting so that corporate emission reductions align with what the latest climate science says is necessary to limit global warming to 1.5°C above pre-industrial levels.

Critically, SBTi does not set targets for companies. It provides methodologies, sector-specific guidance, and independent validation. When a company’s targets are SBTi-validated, it means an independent technical team has assessed those targets against the latest climate science and confirmed they are sufficiently ambitious. This validation is what distinguishes SBTi targets from voluntary corporate pledges, which often lack rigour, accountability, or any connection to climate science.

As of early 2026, over 10,000 companies globally have had their targets validated by SBTi — representing more than 40% of global market capitalisation — including a growing number of Irish businesses responding to CSRD requirements and supply chain expectations.

How SBTi Works

SBTi operates on two core target types, each with specific requirements that leave little room for interpretation error.

Near-Term Targets

These cover the next 5–10 years and define how quickly a company will reduce emissions. The minimum ambition level is a 1.5°C-aligned pathway, requiring absolute reductions in Scope 1 and 2 emissions — and in Scope 3 if value chain emissions exceed 40% of the total. The specific reduction percentages depend on your base year, sector pathway, and methodology choice, and these thresholds are regularly updated.

Long-Term Net-Zero Targets

Under the SBTi Corporate Net-Zero Standard, companies commit to reducing emissions across all scopes by at least 90% by no later than 2050. The remaining residual emissions must be neutralised using permanent carbon dioxide removal — not conventional carbon offsets. This is a fundamentally different proposition from carbon neutrality, which allows unlimited offsetting without reduction.

Sector-Specific Pathways

SBTi provides tailored methodologies for high-impact sectors, each with different decarbonisation trajectories and technical requirements. Selecting the correct pathway and applying the right methodology is essential — the interaction between sector classification, target type, ambition level, and boundary decisions creates a web of interdependent choices where an error at any point can cascade through the entire submission. Using the wrong approach will result in failed validation.

Why the Validation Process Is More Complex Than It Appears

Setting science-based targets follows a structured five-step process — commit, develop, submit, validate, disclose. On paper, this looks straightforward. In practice, each stage involves technical decisions that determine whether your targets will pass validation.

The Commitment Phase

Submitting a commitment letter to SBTi publicly declares your intention to set science-based targets and places your company on the SBTi commitment register. Companies have 24 months from commitment to submit targets for validation — and that clock creates real pressure, because the underlying work is substantial.

Target Development — Where Most Complexity Lives

Building targets that will survive SBTi’s technical review requires a robust carbon inventory and careful modelling. The decisions at this stage — base year selection, organisational boundary, Scope 3 screening, and methodology choice — are interdependent and consequential. Each one constrains the others: your base year affects your target ambition, your boundary decisions determine whether targets align with your CSRD reporting scope, your Scope 3 materiality screening drives the overall target (since value chain emissions typically represent the majority of total emissions), and your methodology choice must reflect the current SBTi criteria at time of submission.

These decisions have lasting consequences. Targets built on the wrong foundation will fail validation or need to be restated — a costly and time-consuming outcome that can be avoided with the right technical guidance from the outset. If you are working through this stage, get in touch before locking in decisions that are difficult to reverse.

Validation and Beyond

SBTi’s technical team reviews submissions rigorously, with a back-and-forth process to clarify data and justify methodology choices. After validation, companies must report progress annually and revalidate targets at least every five years. The process rewards rigour and preparation — companies that enter validation without specialist support frequently face rounds of revision that delay the outcome by months.

What Is Not Allowed

Several common assumptions trip companies up — carbon offsets cannot count towards near-term targets, renewable energy certificates face strict accounting criteria, and intensity targets are only permitted in limited circumstances. The rules are specific, technically detailed, and regularly updated. What was acceptable in a previous version of SBTi’s criteria may not be in the current one.

Why Irish Businesses Should Set Science-Based Targets

CSRD Alignment

The CSRD requires in-scope companies to disclose their climate transition plans, including emission reduction targets. Having SBTi-validated targets provides a ready-made, credible response to ESRS E1 requirements. Auditors and assurance providers recognise SBTi as the gold standard for target-setting methodology. Without validated targets, companies face harder questions about the credibility and ambition of their disclosed commitments.

Investor and Lender Expectations

Irish banks and institutional investors are increasingly factoring climate risk into lending and investment decisions. SBTi-validated targets demonstrate that your business has a credible decarbonisation pathway — reducing perceived transition risk and potentially improving access to sustainable finance instruments.

Supply Chain Requirements

Multinationals with SBTi commitments need their Irish suppliers to reduce actual emissions — because your Scope 1 and 2 are their Scope 3. Having your own SBTi targets demonstrates commitment and makes you a preferred supplier. This is already a live requirement for Irish companies supplying into pharmaceutical, technology, and food and beverage multinationals.

Public Procurement

Ireland’s green public procurement policies are embedding sustainability criteria into tender evaluation. SBTi-validated targets provide concrete evidence of climate commitment that strengthens tender submissions.

Competitive Positioning

As regulation tightens and market expectations shift, the question is not whether to set science-based targets, but when. Early movers build internal capability, engage suppliers, and identify cost-saving opportunities before they become urgent — and avoid the rush as reporting deadlines close in. If you are considering an SBTi commitment but are not sure of the scope of work involved, talk to our team for an honest assessment of what it takes for your business.

SBTi and Net Zero

The SBTi Corporate Net-Zero Standard sets the most rigorous definition of corporate net zero currently available — requiring near-term and long-term targets, at least 90% absolute emission reductions before any residual neutralisation, and strict limits on what qualifies as permanent carbon removal. Beyond value chain mitigation (BVCM) adds a further layer of expectation for companies on the pathway to net zero.

This standard explicitly rejects conventional carbon offsets as a route to net zero. You cannot buy your way to net zero — you must decarbonise first and only then neutralise what genuinely cannot be eliminated. The technical requirements for qualifying residual neutralisation and BVCM investments are precise and evolving — this is an area where the difference between what companies assume qualifies and what SBTi actually accepts is significant.

For Irish companies, net-zero targets through SBTi align directly with Ireland’s Climate Action Plan (51% reduction by 2030, net zero by 2050) and EU-wide climate legislation.

Common Challenges

Data Quality

Science-based targets require a robust carbon inventory. Many Irish businesses lack comprehensive Scope 3 data, and the gap between “we have some numbers” and “our data will withstand SBTi technical review” is larger than most companies anticipate. Base year inventories need to be accurate, complete, and documented to a standard that supports both SBTi validation and CSRD assurance — a dual requirement that compounds the data quality challenge.

Scope 3 and Methodology Complexity

The 15 categories of Scope 3 each have their own data requirements and calculation methods. At the same time, SBTi regularly updates its criteria, methodologies, and sector pathways. The interaction between Scope 3 materiality screening, near-term and net-zero targets, sector pathway selection, and base year decisions creates a web of interdependent choices — where an early decision that seems reasonable can create validation problems that are expensive to fix months later. This is the stage where specialist support has the highest return. Our climate strategy team navigates these interdependencies daily — reach out if you want to avoid validation setbacks.

Integration with CSRD

SBTi targets do not exist in isolation. They need to align with your CSRD transition plan, your ESRS E1 disclosures, your double materiality assessment, and your broader ESG strategy. Misalignment between your SBTi submission and your CSRD reporting creates credibility risk with both the SBTi technical team and your CSRD assurance provider.

How Clearscope Helps

Setting science-based targets is one of the most consequential sustainability decisions an Irish business will make. The targets are public, validated by an independent body, and subject to annual progress reporting. They need to be right — technically, strategically, and commercially.

We provide end-to-end support through climate strategy and carbon accounting:

• Carbon inventory development — building Scope 1, 2, and 3 inventories to the data quality standard required for SBTi validation and CSRD assurance, not just rough estimates
• Target modelling and pathway alignment — developing reduction targets that reflect the correct SBTi methodology for your sector, pass technical validation, and are commercially achievable
• Validation management — preparing the full SBTi submission package, managing the technical review process, and handling the back-and-forth with SBTi’s validation team
• Decarbonisation roadmapping — translating validated targets into specific, sequenced, costed reduction measures so your targets are backed by a credible delivery plan
• CSRD integration — ensuring your SBTi targets, transition plan, and ESRS E1 disclosures are fully aligned and mutually reinforcing
• Ongoing reporting — tracking and reporting annual progress against validated targets, including support for CDP disclosure

The SBTi process rewards rigour and punishes guesswork. We bring the technical depth and regulatory knowledge to get your targets validated first time and position your business for the scrutiny that follows.

Contact us to start setting science-based targets for your business.

Frequently Asked Questions

What is the Science Based Targets initiative (SBTi)?

SBTi is an independent body that enables companies to set emission reduction targets aligned with climate science. It provides methodologies, sector guidance, and independent validation against the Paris Agreement goal of limiting warming to 1.5°C.

How long does the SBTi validation process take?

The full process typically takes 6–12 months, though building the underlying carbon inventory can add significant time. Companies have 24 months from commitment to submit targets, and the technical review itself can take several months depending on complexity.

Do SMEs need to set science-based targets?

SBTi offers a streamlined route for SMEs. While not yet a regulatory requirement, science-based targets are increasingly expected by large customers with their own SBTi commitments and strengthen positioning for public procurement.

Can carbon offsets count towards science-based targets?

No. Carbon offsets cannot be used to meet SBTi near-term emission reduction targets. Companies must achieve real, absolute reductions in their own emissions. Under the Net-Zero Standard, only permanent carbon dioxide removal can be used to neutralise the residual 5-10% of emissions that cannot be eliminated.

How does SBTi relate to CSRD reporting?

CSRD requires in-scope companies to disclose climate transition plans and reduction targets. SBTi-validated targets provide a credible, independently verified response that gives auditors confidence — but the two frameworks must be carefully aligned.