A walkthrough of SBTi and, The Net-Zero Standard

A walkthrough of SBTi and, The Net-Zero Standard

Today, everyone is discussing “Net Zero” plans, including governments and large corporations. They are all setting net zero goals as the pressure to combat climate change rises. The Science Based Targets Initiative published the first ‘Net-Zero Standard’ last year, and this is what you should know when setting goals for your company. 

What is the Science Based Targets Initiative and the purpose of the Net-Zero Standard? 

The SBTi is a global organization that helps businesses set rigorous emission reduction targets based on the most recent climate science results. It seeks to help businesses around the world cut emissions in half by 2030 and achieve net zero emissions by 2050.  

The SBTi’s Corporate Net-Zero Standard, also known as the Net-Zero Standard, gives guidance, rules, and recommendations to help businesses set net zero goals. The main objective of the Net-Zero Standard is to give businesses a standardized, trustworthy way of setting net zero targets that are in line with climate science. 

What does The Net-Zero Standard Framework actually advise? 

The Net-Zero Standard was developed to assist businesses in becoming net zero while adhering to societal climate and sustainability goals and staying within the biophysical limits of the earth. To meet society’s net zero goals, businesses must dramatically reduce their emissions and mitigate the effects of any emissions that do still exist. According to the SBTi Net-Zero Standard, corporate net zero means: 

  • Reducing scope 1, 2, and 3 emissions to zero or to a residual level that is consistent with reaching net zero emissions at the global or sector level in eligible 1.5°C-aligned pathways. These 1.5°C-aligned pathways are led by the Paris Agreement, which establishes a framework for preventing severe climate change on a global scale by pursuing efforts to keep it below 1.5°C.
  • Neutralising any residual emissions at the net zero target year and any Greenhouse gas emissions (GHG emissions) released into the atmosphere thereafter.

The framework comprises of three steps: decarbonise the business and its value chain, neutralize residual emissions, and mitigate beyond the value chain as an optional last step. 

1- Decarbonize the business and its value chain with near and long-term goals 

Near-Term Science-Based Targets:  

These 5–10 year GHG mitigation goals are consistent with 1.5°C pathways and were previously known as science-based targets. Once companies reach their near-term target date, organizations must create new near-term science-based goals in order to serve as checkpoints on the path to reaching their long-term science-based aim. Science-based short-term goals motivate the effort needed to reduce carbon emissions significantly by 2030. 

Long-Term Science-Based Targets: 

These goals demonstrate to businesses how much emission reductions along the value chain are necessary to achieve net zero emissions across all sectors by 2050 or earlier in qualifying 1.5°C scenarios. These goals influence long-term corporate planning, economic alignment, and the level of global emissions reductions necessary to achieve science-based climate objectives. An organization cannot claim net-zero zero until the long-term, science-based goal is met. 

2- Neutralize the residual emissions through permanent removal and carbon storage 

Businesses are making efforts to remove carbon from the environment and store it permanently in order to avoid the consequences of emissions that are still being released. Even if most companies achieve long-term, science-based goals to reduce emissions by at least 90%, some residual emissions are likely to exist. To achieve net zero emissions and a position in which GHG emissions have no impact on the climate, these emissions must be counterbalanced through the permanent removal and storage of carbon from the atmosphere. 

3- Mitigate emissions outside of your company’s value chain by investing carbon offset projects 

Beyond Value Chain Mitigation 

Investments or mitigation strategies used outside a company’s value chain are referred to as “beyond value chain mitigation.” This covers actions that reduce or restrict the emission of greenhouse gases as well as those that collect and retain them in the atmosphere. Companies must take decisive steps to address climatic and environmental challenges. Businesses are expected to decarbonize their value chains in accordance with science and achieve net zero emissions by 2050. Businesses may speed up their net zero transition and combat ecological catastrophe by investing in mitigation measures outside of their value chains. 

Further Work on Beyond Value Chain Mitigation 

The SBTi Net-Zero Standard is based on the idea of a “mitigation hierarchy”. According to the mitigation hierarchy, businesses should prioritize implementing strategies to achieve their science-based targets for reducing emissions in their value chains above taking actions or making investments to reduce emissions outside of their value chains. Even if setting and achieving science-based targets must be a top priority, companies should go beyond and engage in mitigation outside of their value chains to support society in achieving net zero. 


The SBTi Net-Zero Standard Framework is the most effective strategy for reaching net-zero goals based on climate science. This attempts to guide businesses toward the Paris Agreement’s 1.5°C target in terms of both short- and long-term climate action. The only way to achieve net-zero emissions is to balance human-caused GHG emissions with an equal amount of GHG removals over a fixed period of time.    

How Could Faradai Sustain Support Your Business? 

Faradai Sustain helps businesses with all things in climate sustainability, including accurate and up-to-date emission calculators, data management for Scope 1, 2, and 3 emissions covering 2000+ activities data such as waste, water, transport, and supply chain, target setting in line with Science Based Targets Initiative (SBTi), progress tracking and more. 

We also assist businesses big and small to use carbon offsetting to meet their net zero targets with a range of options for reliable and verifiable carbon offsetting in categories such as biomass, soil management, energy efficiency and more.  

To find out more about how Faradai Sustain handles net zero targets, carbon offsetting and could support your business in sustainability transition start free now at  https://sustain.faradai.ai 




Teoman Efe Kuday

CEO’s Team Member at Faradai