Top 5 Challenges Companies Face When Setting SBTi Targets (and How to Solve Them)

The Science Based Targets initiative (SBTi) has become the gold standard for corporate climate action. More and more companies are committing to align their emissions reductions with climate science, but setting credible targets isn’t always straightforward.From data quality hurdles to navigating supply chain complexity, organizations often find themselves stalled in the process. In this article, we break down the top 5 challenges companies face when setting SBTi targets, and practical strategies to overcome them.---## 1\. Collecting Reliable Data Across OperationsThe Challenge: Before companies can set targets, they need a clear baseline of their emissions. Scope 1 and 2 (direct operations and purchased energy) are usually manageable, but Scope 3 (value chain) is much trickier. Many businesses struggle with fragmented data, supplier gaps, or reliance on generic emission factors.The Solution:- Start with the data you _do_ have, don't let perfection delay progress.- Use industry averages as a bridge, but create a roadmap for improving supplier specific data over time.- Invest in systems that centralize emissions reporting across departments and geographies.- Build supplier engagement programs to increase transparency year over year.---## 2\. Navigating Complex Supply ChainsThe Challenge: For many companies, most emissions lie in their supply chain. Tracking emissions from hundreds (or thousands) of suppliers, many of whom may lack climate expertise, is daunting.The Solution:- Prioritize: Identify the suppliers or categories that contribute the most emissions and focus there first.- Collaborate: Provide suppliers with simple tools, training, or templates to report their emissions.- Incentivize: Link sustainability performance to procurement decisions, encouraging suppliers to act.---## 3\. Balancing Ambition With AchievabilityThe Challenge: SBTi targets must be aligned with climate science, meaning they’re often more ambitious than a company’s current reduction plans. This can lead to internal hesitation, especially if the targets appear “too big to achieve.”The Solution:- Break down long term targets into smaller, interim milestones.- Demonstrate the business benefits, like cost savings from energy efficiency, reduced risk, and stronger brand reputation.- Engage leadership early to secure buy in and resources for bold action.---## 4\. Keeping Up With SBTi Guidance UpdatesThe Challenge: SBTi regularly updates its criteria and sector specific pathways. For companies without a dedicated sustainability team, staying on top of new requirements can feel overwhelming.The Solution:- Assign a clear owner internally who tracks SBTi updates.- Subscribe to SBTi communications and join industry groups where updates are discussed.- Work with external experts or partners who can help interpret and apply new guidance.---## 5\. Integrating Targets Into Business StrategyThe Challenge: Too often, emissions targets are treated as a "sustainability project" rather than a company wide priority. Without integration into business strategy, targets risk becoming disconnected from day to day decisions.The Solution:- Embed targets into financial planning, product design, and procurement policies.- Make carbon a metric that leaders track alongside cost, quality, and risk.- Train teams across the business so climate goals become part of everyone’s role.---## Final ThoughtsSetting SBTi targets is a critical step toward aligning with the Paris Agreement and building long term resilience. While the challenges are real, they are not insurmountable. By taking a phased approach, starting with the data you have, focusing on high impact suppliers, and embedding climate action into core strategy, companies can move forward with confidence.The result? More credible climate commitments, stronger stakeholder trust, and a meaningful contribution to a net zero future.