SBTi Guide: Setting Science-Based Targets

A science-based target is a target, validated by an independent body, that sets out in numbers how a company will cut its emissions at the pace climate science indicates. In Türkiye the topic usually lands on the table through a customer questionnaire, an investor question or a new clause in a supply contract. This guide explains what SBTi is, which types of targets it asks for, what the Corporate Net-Zero Standard V2.0 published in June 2026 changes, and how to plan the process from commitment to validation.

The sub-guides go into more depth:

• SBTi Net-Zero Standard V2: what changed from V1.3?
• SBTi target setting step by step
• The SBTi validation process

What is SBTi?

The Science Based Targets initiative (SBTi) develops standards, tools and guidance that enable companies and financial institutions to set greenhouse gas reduction targets aligned with pathways that reach net zero by 2050 at the latest. Its partners are CDP, the UN Global Compact, the We Mean Business Coalition, WRI and WWF. Targets are assessed by SBTi Services, a subsidiary that is a separate legal entity. In other words, the body that writes the standard is not the same unit that validates the targets.

According to SBTi's own figures, more than 11,000 companies have set targets under this framework. As the scale has grown, SBTi validation has become a common language that customers and financial institutions use to compare companies.

In practice, SBTi asks for three things:

1. A complete greenhouse gas inventory in line with the GHG Protocol.
2. Targets calculated by applying SBTi methods to that inventory.
3. Public disclosure of the targets once validated, and annual reporting of progress.

For the basics on the inventory side, see our guide scope 1, 2 and 3 explained.

Target types: near-term, long-term and net-zero

SBTi terminology distinguishes three types of target.

Near-term target: States how far emissions will fall over the next few years. Under V1.3.1 this period is 5 to 10 years from the date of submission. Under V2.0, near-term targets cover 5 years; at the first validation under V2.0, a shorter period can be chosen to fit the reporting cycle.

Long-term target: Describes emissions falling to the level of residual emissions by 2050 at the latest.

Net-zero target: Combines near-term and long-term targets across all scopes and requires remaining emissions in the net-zero year to be neutralized with carbon removals (neutralization). Under V2.0 a net-zero target is optional for all companies; if chosen, near-term and long-term targets are required for all of scope 1, 2 and 3.

The V2.0 requirements at a glance:

Category A companies that choose the emissions intensity reduction or asset transition method for their near-term scope 1 target must also set a long-term scope 1 target.

Why is it on the agenda for companies in Türkiye?

SBTi is voluntary. No Turkish legislation requires companies to set an SBTi target. Even so, there are three concrete reasons why it is on the agenda.

Supply chain pressure has become mechanical. Under V2.0, one of the scope 3 options is a supplier alignment target that aims to increase the share of tier 1 suppliers that are "in transition" or "net-zero aligned". In the draft pathway definition put out for public consultation in June 2026, a supplier with a science-based near-term target covering scope 1, 2 and significant scope 3 emissions (only scope 1 and 2 for Category B) counts as "in transition". For advanced economies, the draft expects at least 70 percent of spend or emissions exposure to come from such suppliers by 2030. So when a European customer chooses this target, your target feeds directly into their target calculation.

Regulation in export markets. SBTi states explicitly that V2.0 helps companies in emerging economies manage transition risks arising from export market regulations such as CBAM and CSRD. For a Turkish manufacturer selling into Europe, this means the customer's reporting burden is passed on to the supplier.

Financial institutions and reputation. SBTi's FAQ document stresses that the standard strengthens companies' credibility with financial institutions and customers and is widely used by third parties that assess companies.

The category question for Turkish companies

V2.0 removes the SME route and splits companies into two categories. Category A carries heavier obligations: a scope 3 target, independent assurance of base year data at least at the limited assurance level, and public disclosure of the transition plan.

Geography is determined by the World Bank income group of the country where the ultimate parent company is incorporated. In the World Bank FY2027 classification, Türkiye is in the upper-middle-income group. For a group incorporated in Türkiye, therefore, only the first row applies: Turkish groups below the EUR 450 million turnover or 1,000 employee threshold are Category B. A subsidiary in Türkiye whose parent company is incorporated in a high-income country is also subject to the second row. Thresholds are calculated on the group's consolidated figures, using the average of the last two years' financial statements; the emissions threshold is assessed against the physical inventory.

The Net-Zero Standard V2 at a glance

The Corporate Net-Zero Standard V2.0 was published on 11 June 2026. It is a full revision that merges the Near-Term Criteria V5.3 and the Net-Zero Standard V1.3.1 into a single document. According to SBTi's main changes document, 42 percent of the sections in V2.0 are entirely new and 58 percent are modified or expanded versions of existing approaches.

Key changes:

• Separate scope targets: Instead of a combined scope 1+2 target, separate targets for scope 1 and scope 2, each covering 100 percent of emissions.
• Most recent year as base year: In each target cycle, the most recent year with comprehensive data becomes the target base year.
• No exclusions: The 5 percent inventory exclusion allowed under V1.3.1 is removed.
• Significance threshold in scope 3: Instead of the 67 percent coverage rule, every category exceeding 5 percent of the category 1-14 total falls within the target boundary.
• Physical inventory for scope 2: Target ambition is calculated against the location-based inventory; market instruments are assessed within the implementation hierarchy.
• Implementation hierarchy: First, direct reductions at activity level, then shared systems (activity pools), and only then sector-level action.
• End-of-cycle assessment: At the end of each 5-year cycle, progress is assessed, with independent assurance for Category A.
• Ongoing Emissions Responsibility (OER): A voluntary recognition program replacing the beyond value chain mitigation (BVCM) recommendation, with a requirement for Category A companies to support carbon removals from 2035.

For a detailed comparison table, see SBTi Net-Zero Standard V2: what changed.

Where does target ambition come from?

"Science-based" means the target is calculated not according to the company's own preference but according to pathways derived from climate scenarios. The Methods, Metrics and Pathways document that SBTi put out for public consultation in June 2026 defines four types of pathway:

• Absolute emissions pathway: How total emissions need to fall over time.
• Emissions intensity pathway: How emissions per tonne of product or per unit of energy need to fall.
• Alignment pathway: How the share of net-zero aligned activities, products, commodities or suppliers needs to increase.
• Asset transition pathway: On what timeline emission-generating assets need to be transitioned or retired.

These pathways are translated into company targets through methods: Linear Contraction, the Sectoral Decarbonization Approach (SDA), the Asset Decarbonization Plan and alignment methods. In practice, SBTi's target-setting tool does the calculation; the company's job is to enter the right activity data and choose the method knowingly.

V2.0 also clarifies a principle: targets are tracked on a "best efforts" basis. The company is expected to use all available levers, transparently disclose dependencies (technology, supply chain capacity, finance, policy) and report each year on the barriers holding back progress. If emissions remain high in the target year, a steeper reduction is required in the next cycle. This approach shows that a target is not a document approved once and forgotten, but a management tool rebuilt every five years.

Timeline: which version, and when?

Existing validated targets do not have to be updated immediately; they remain valid until the end of the target cycle, subject to the mandatory five-year review rules. For companies with target years of 2030 or later, SBTi recommends keeping existing targets and setting targets for the 2030-2035 cycle under V2.0 from 2028 onwards. We cover the decision logic of the transition separately in our article when to move from V1.3 to V2.

The process: from commitment to disclosure

1. Registration and category

Under V2.0, the first step is registration with SBTi Services. Registration determines whether the company is eligible to set targets and whether it is Category A or B. The category is reconfirmed at validation and remains valid for the 5-year cycle.

2. Commitment (optional)

A commitment is a public statement of intent to submit targets for validation within 24 months. Until 31 January 2027, a separate near-term or net-zero commitment can be made. After that date only a single "SBTi Commitment" option remains, and it can be fulfilled only with V2.0 targets. A commitment is not mandatory; submitting targets directly is possible.

3. Inventory and target design

The target base year inventory is prepared in line with the GHG Protocol, includes all seven Kyoto Protocol gas groups, and reports scope 3 transport emissions on a well-to-wheel basis. For Category A companies, this inventory is assured by an independent third party at least at the limited assurance level. The method is then selected and minimum ambition calculated with the SBTi target-setting tool. The steps are covered in detail in SBTi target setting step by step.

4. Governance and transition plan

Under V2.0, targets are submitted with the approval of the highest governing body (the board of directors or equivalent). All companies must have a transition plan; Category A companies publish it within 15 months of validation. SBTi does not validate the quality of the plan, only whether it contains the required elements.

5. Validation

The submission package consists of the submission form, the target-setting tool output and supporting documents. SBTi Services carries out the review remotely; the regular schedule takes 40-60 business days and the focused schedule 24-30. Details are in the SBTi validation process.

6. Disclosure and annual reporting

Approved targets must be announced within six months of the validation decision; otherwise the targets lose their validity. Under V2.0, companies publicly disclose each year their progress per target, the actions taken and the barriers holding back progress.

Statuses on the SBTi dashboard

The SBTi Services Target Dashboard has used the new status structure since September 2026. According to the V2.1 document dated October 2026, the main statuses are:

One important detail: a company whose commitment has been removed cannot obtain a republished commitment, but it can obtain validation by submitting targets directly.

Why do targets get stuck or withdrawn?

The validation documents list clearly what SBTi Services looks at. The points where submissions get stuck are usually that list itself:

• Incomplete inventory: One of the seven gas groups left out, the GHG Protocol minimum boundary not met for scope 3 categories, transport not calculated on a well-to-wheel basis.
• Wrong boundary: The target set at subsidiary level instead of parent company level without justification. V2.0 requires a company setting targets at a lower level to show that this was not done to leave out significant emission sources.
• Undocumented scope 3 exclusions: For every exclusion, the condition, the amount and the reduction action must be reported.
• Missing governance evidence: A dated document showing board approval, a signed governance structure and a review policy are required.
• Deadline management: Missing the response deadlines set by the Lead Reviewer is a ground for rejection.
• Not publishing: Failing to announce an approved target within six months invalidates the target.

For a detailed list of the mistakes we see in the field, see why SBTi targets get withdrawn: 9 mistakes companies make.

Checklist before you start

Before starting an SBTi project, the answers to these questions should be clear:

1. Boundary: Will the target be set at parent company level? Are all subsidiaries within the boundary?
2. Category: Where do the group's consolidated turnover and headcount for the last two years sit against the Category A threshold?
3. Inventory: Is the scope 1, 2 and 3 inventory complete for the most recent year? Are the seven gas groups, both location-based and market-based figures for scope 2, total electricity consumption and the share of low-carbon electricity ready?
4. Scope 3: Which categories exceed 5 percent of the total? In which categories is supplier data available?
5. Assurance: If we are Category A, who will assure the base year inventory, and on what timeline?
6. Governance: Is the board ready to formally take responsibility for the targets?
7. Timing: Do our commitment deadline, target year or review date determine which version we can use?

Gaps in this list take far more time than the target itself. If you are just starting on the inventory side, our carbon footprint service is the first step.

How can an SBTi Certified Expert help?

The SBTi Services validation schedule document clearly limits the reviewer's role: the Lead Reviewer does not advise on strategic decisions such as which target-setting method is most suitable for the company; they only assess the submission against the criteria. In addition, a Lead Reviewer assessing a company's submission cannot have worked for that company in the last two years. Method selection, preparing the inventory and building the evidence file are therefore the company's responsibility.

Alalëa's founder Göker Avcı is an SBTi Certified Expert. In this role, our work focuses on:

• Clarifying the category and version decision (V1.3.1 or V2.0) based on the company's commitment and target dates.
• Preparing the target base year inventory against SBTi's Minimum Evidence Required and getting it ready for assurance.
• Comparing methods for scope 1, 2 and 3 and justifying scope 3 exclusions.
• Structuring the transition plan with the elements the standard requires.
• Managing questions during validation within the response deadlines.

If you would like to map out a roadmap for your targets, take a look at our SBTi target setting service or get in touch with us directly.