Driving decarbonisation: Setting Science-Based Targets to cut your GHG emissions 

“The climate crisis demands more than pledges – it requires businesses to back commitments with rapid, science-guided action.”

In an era where both regulatory pressure and stakeholder scrutiny around climate action are intensifying, setting science based targets has become essential for businesses aiming to future proof their operations and lead in decarbonisation. The Science Based Targets initiative (SBTi) offers a credible pathway to align your GHG emissions reduction strategy with the latest climate science, reinforcing trust and unlocking competitive advantages.

Why set Science Based Targets?

Science based targets provide organisations with a clear, evidence backed approach to achieve meaningful GHG emissions reductions. Aligning with the SBTi is more than a box ticking exercise, it demonstrates a proactive commitment to address the climate emergency and helps companies:

• Tackle scope 1, 2, and often complex scope 3 (value chain) emissions systematically.
• Enhance business resilience and gain investor and stakeholder confidence.
• Meet growing regulatory requirements and anticipate future policy developments.
• Embed decarbonisation at the core of business strategy, supporting long term value creation.

Here are some tangible benefits of setting science based targets:

The SBTi strategy: A closer look

The Science Based Target initiative sets out robust criteria for setting, validating, and updating targets in line with the Paris Agreement’s ambition to limit global warming to 1.5°C. The SBTi guides organisations through the process of committing to, developing, submitting, and communicating their GHG emissions reduction targets—a journey that drives meaningful progress in decarbonisation and can be tailored for organisations of any size and sector.

Key stages include:

Read more about how to decarbonise your business through the SBTi in our latest factsheet by sustainability experts!

What’s new? The latest SBTi changes in 2025

Clarification on the Five Year Target Review: The mandatory five year review of science based targets is not a new requirement; it was already part of the SBTi criteria. However, in 2025, SBTi released new guidance documents to support companies reaching this review stage (1). These documents help ensure continuous ambition and alignment with the latest climate science and SBTi criteria, making the process clearer and more manageable for businesses.

Expanded commitment and target statuses

To foster transparency, SBTi is rolling out expanded status categories such as “active,” “updated,” “expired,” or “archived” on its public dashboard effective December 18, 2025. Companies can show “active” commitment, highlight newly “updated” targets, or, if non compliant, find their status reclassified. This overhaul ensures stakeholders can clearly track which companies are leading, lagging, or have become inactive on climate action.

Draft corporate net zero standard Version 2.0

A new draft version of the SBTi Net Zero Standard, released for consultation in March 2025, tightens requirements for scope 3 emissions, offers clearer, actionable demands for emerging economies, and introduces enhanced validation and reporting. Forward thinking organisations should note these upcoming shifts and prepare to adapt their decarbonisation strategies accordingly.

Read our article about the updated version of the SBTi Net Zero Standard for more information.

Financial Institutions Net Zero Standard Released in July 2025

On 22 July 2025, the SBTi released the Financial Institutions Net Zero Standard (2), enabling banks, asset owners and managers, private equity firms, insurers, and other financial institutions to set science based targets aligned with achieving net zero by 2050 at the latest. This new Standard provides clear, actionable guidance to align lending, investment, insurance, and capital markets activities with limiting global warming, while supporting integration into existing risk and investment processes.

By setting targets against the Standard, financial institutions can build resilience, meet evolving stakeholder expectations, manage climate related risks, and capture emerging opportunities; positioning themselves as leaders in the global transition to a net zero economy. The framework also encourages portfolio alignment, incentivising support for high emitting sectors to transition, increasing climate aligned activities across portfolios, and leveraging influence to drive real world decarbonisation.

Check the Science Based Targets Initiative website to learn more about the latest changes.

SBTi strategy in action: Steps to get started

• Map your current GHG emissions as baseline data is vital.
• Commit to the SBTi and engage key stakeholders within your organisation.
• Develop clear reduction targets in line with SBTi criteria, covering all relevant scopes.
• Implement reduction initiatives, from energy efficiency to sustainable procurement.
• Monitor, review, and update targets regularly to remain aligned and credible.
• Communicate transparently, internally and externally, about progress, challenges, and wins.

Find out tailored steps and strategies for the SBTi in our factsheet.

The value of decarbonisation through Science Based Targets

Adopting an SBTi aligned decarbonisation strategy unlocks value by:

• Assuring investors and customers of your leadership in climate action.
• Reducing long term operational and regulatory risks.
• Strengthening your brand’s credibility and reputation.
• Enabling access to sustainability linked finance and markets.

As climate expectations continuously evolve, keeping your strategy and your targets up to date with SBTi best practices is both a leadership imperative and a business advantage. The latest SBTi updates make this journey more transparent, measurable, and impactful than ever.

How can Nexio Projects assist your journey?

Nexio Projects is a leading sustainability consultancy and global EcoVadis strategic partner, supporting over 400 clients in 25+ sectors to turn climate ambition into action. Recognised by Verdantix as a top 10 boutique ESG and sustainability strategy consultancy, our climate experts help organisations design and implement sustainability services such as robust decarbonisation plans, set science based targets in line with the SBTi, and navigate complex regulations to achieve measurable, long term impact.

Download our Scope 3 starter kit guide from our decarbonisation consultants to find out more about how to measure carbon emissions.

Ready to set credible, science based targets and accelerate your decarbonisation journey?

Contact Nexio Projects for tailored support on climate and ESG advisory, or sign up to our newsletter for the latest updates on SBTi and climate action.

References:

1. Science Based Targets initiative (2025) The SBTi provides guidance to aid companies in target updating and transparency. Available at: https://sciencebasedtargets.org/news/the-sbti-provides-guidance-to-aid-companies-in-target-updating-and-transparency (Accessed: 12 August 2025).
2. Science Based Targets initiative (2025) The SBTi opens net-zero standard for finance industry. Available at: https://sciencebasedtargets.org/news/the-sbti-opens-net-zero-standard-for-finance-industry (Accessed: 12 August 2025).