Is the SBTi right for you yet?

What is the SBTi and why do customers mention it?

The Science Based Targets initiative is the body that checks whether a company's emissions target matches what climate science says is needed, and publishes the list of companies whose targets have passed. Many of your customers have targets on that list. Those targets cover their suppliers' emissions, and some customers have committed to the SBTi that a share of their suppliers will have science-based targets of their own by a set date. That is why the letters appear in supplier requests: your customer may be counting you towards a number they have promised.

Is there a simpler route for small companies?

Yes. The SBTi has a separate, streamlined route for small and mid-sized companies. The rules sit in the SBTi's FAQs for SMEs (version 6.2, July 2026), not on a separate web page. To qualify, a company needs Scope 1 and 2 emissions under a set threshold and must meet size tests on employees, turnover and total assets, with some sectors excluded; the FAQs give the current figures. Instead of building a bespoke target, an SME picks from predefined near-term target options for Scope 1 and 2 and commits to measure and reduce Scope 3. The SBTi first checks eligibility, then reviews the target before it is published. There is a target validation fee, set by SBTi Services; check the current amount there. Once published, your company appears on the public list that customers check. In Japan, the Ministry of the Environment explains the SBT criteria, with a note on the SME route, on its page on setting reduction targets (in Japanese).

Do I need it now?

Usually not in year one. The order most customers follow is: figures, then a commitment, then action, with SBTi validation as the thing that turns the commitment into something they can cite. A public commitment such as the SME Climate Commitment satisfies most customers at first, costs nothing and takes minutes. The SBTi becomes worth it when:

1. A customer has asked for it by name, or has a supplier-engagement target that counts suppliers with SBTi targets.
2. You supply several large customers and want one credential that all of them recognise.
3. You have a Scope 1 and 2 figure you trust and a plan that makes the target reachable.

If none of those applies yet, set the target anyway (the guide on setting a target covers it), publish it, and come back to the SBTi when one of them does.

Your customer will accept: a published target using the SBTi's rate of reduction, with a stated intention to submit for validation once your data is a year older. Say that in your reply and most customers tick the box.

What does it cost, in money and time?

Money: the SME target validation fee, which SBTi Services sets and updates. Time: a few hours of your own if your footprint and target statement already exist, because the SME route uses predefined options rather than a bespoke target. The SBTi's SME FAQs say publication then typically takes around 60 business days. The real cost is afterwards, in the reporting commitment: you agree to publish your emissions and progress every year, which means keeping the footprint current. That is work you should be doing anyway for your customers, so the SBTi mostly formalises it.

What am I committing to?

Three things, in plain terms: a near-term reduction in Scope 1 and 2 at the rate the SBTi sets for the option you choose; measuring your Scope 3 and reducing it; and reporting progress publicly each year. The SME FAQs do not ask for third-party verification or a product carbon footprint, and net zero is an option rather than a requirement. For companies that want a net-zero target, the SBTi's Corporate Net-Zero Standard page sets out which version applies: version 2 has been published, version 1.3.1 applies to validation through 2026, and validation against version 2 opens in Q1 2027. Read the current SME FAQs before you submit, because the terms are updated.

What are the alternatives?

These stack rather than compete. Most suppliers do the first two in year one and the third in year two or three.

Do this week: check whether your company meets the SME definition in the SBTi's FAQs for SMEs, and check whether any customer request you have received names the SBTi. If one does, start the SME target submission; if none does, publish your target and move to the Reduce stage.

What should I do next?

The Reduce stage starts with renewable electricity, the change that makes most Scope 2 targets reachable. If your customer uses DitchCarbon, claim your profile and record your target and its status, because validated targets are shown there separately from self-declared ones.