Procurement Glossary
SBTi targets: Science-based climate targets in Procurement
November 19, 2025
SBTi targets are science-based climate targets that support companies in aligning their emission reductions with the goals of the Paris Climate Agreement. In Procurement , these targets play a central role in sustainable supplier selection and the decarbonization of supply chains. Find out below what SBTi targets are, what methods exist for implementing them and how they are used strategically in procurement management.
Key Facts
- SBTi stands for Science Based Targets initiative and defines scientifically based emission reduction targets
- Targets must be compatible with the 1.5°C path of the Paris Climate Agreement
- Over 4,000 companies worldwide have already committed to SBTi targets
- Scope 3 emissions from the supply chain must be included for most companies
- Validation by the SBTi is carried out according to strict scientific criteria
Contents
Definition: SBTi targets
SBTi targets are quantified emission reduction targets that are validated by the Science Based Targets initiative and are consistent with the latest climate science.
Core elements of science-based objectives
The Science Based Targets initiative defines specific criteria for valid climate targets:
- Compatibility with the 1.5°C warming scenario
- Coverage of all relevant emission areas (Scope 1, 2 and 3)
- Time-bound and measurable reduction paths
- External validation by SBTi experts
SBTi targets vs. conventional climate targets
In contrast to self-defined sustainability targets, SBTi targets are based on scientific methods. They systematically take Scope 3 emissions into account and follow standardized calculation methods that ensure a credible climate strategy.
Importance of SBTi targets in Procurement
For purchasing organizations, SBTi targets mean a strategic realignment of procurement. Decarbonizing the supply chain is becoming a key success factor, as Scope 3 emissions often account for 70-90% of total emissions.
Methods and procedure for SBTi targets
The implementation of SBTi targets requires structured methods for emissions measurement, target formulation and supplier integration.
Emission balancing and baseline creation
The first step involves the complete recording of all emission sources. Scope 1 emissions, Scope 2 emissions and Scope 3 emissions are systematically documented. The baseline serves as the starting point for target formulation and subsequent progress measurement.
Target formulation according to SBTi criteria
SBTi-compliant targets follow specific reduction paths:
- Absolute emissions reduction of 42% by 2030 (base year variable)
- Annual reduction rate of at least 4.2%
- Inclusion of Scope 3 emissions if 40% of total emissions are exceeded
- Separate targets for different emission categories
Supplier engagement and implementation
Practical implementation takes place through systematic supplier engagement. Supplier codes of conduct are expanded to include climate commitments, and suppliers are supported in developing their own SBTi targets.
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Key figures for controlling
Measuring the success of SBTi targets requires specific key figures that reflect both absolute emission reductions and operational progress.
Emission figures and reduction progress
Central KPIs include the annual reduction in emissions in CO2 equivalents, broken down into Scope 1, 2 and 3. Progress is measured as a percentage of the baseline, with the target annual reduction rate of 4.2% serving as a benchmark.
Supplier performance indicators
Supplier-related key figures measure the quality of implementation in the supply chain:
- Proportion of suppliers with their own SBTi targets
- Average emissions intensity per supplier
- Number of energy audits carried out at suppliers
- Compliance rate for sustainability requirements
Procurement efficiency and cost ratios
Operational KPIs evaluate the efficiency of sustainable procurement. These include the cost development per ton of CO2 saved, the number of material substitutions implemented and the reduction of the product carbon footprint in critical Categories.
Risks, dependencies and countermeasures
The implementation of SBTi targets entails operational, financial and strategic risks that need to be managed proactively.
Supply chain dependencies and implementation risks
The achievement of SBTi targets depends largely on the willingness of suppliers to cooperate. A lack of transparency in Scope 3 emissions and inadequate data quality can jeopardize the achievement of targets. Countermeasures include systematic supplier training and contractual obligations.
Cost risks and budget effects
Switching to climate-friendly procurement can lead to higher costs in the short term:
- Premium prices for sustainable materials and services
- Investments in new technologies and processes
- Additional resources for monitoring and reporting
- Potential change of supplier with conversion costs
Reputational and compliance risks
Failure to meet SBTi targets can lead to considerable reputational damage. Compliance risks arise from tightening regulation and possible sanctions in the event of non-compliance with climate obligations.
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Practical example
An automotive manufacturer implements SBTi targets through systematic supplier integration. The company contractually commits its 200 most important suppliers to develop their own science-based climate targets by 2025. Through targeted training, financial incentives and technical support, the company achieves a participation rate of 85%. Scope 3 emissions are reduced by 15% while supplier relationships are strengthened.
- Contractual anchoring of climate commitments
- Development of a supplier support program
- Continuous monitoring and reporting
Current developments and effects
The development of SBTi targets is driven by regulatory requirements, technological innovations and changing stakeholder expectations.
Regulatory drivers and compliance
New EU regulations are increasing the pressure on science-based climate targets. The Corporate Sustainability Reporting Directive and the Supply Chain Duty of Care Act create a legal framework that establishes SBTi targets as best practice.
Technological support and AI integration
Artificial intelligence is revolutionizing the implementation of SBTi targets in Procurement. AI-based systems enable automated emissions measurements, predictive analyses for supplier risks and optimized procurement strategies to achieve targets. Machine learning algorithms identify decarbonization potential in complex supply chains.
Financial market and investor pressure
Investors and financial institutions are increasingly integrating SBTi targets into their evaluation criteria. Companies without science-based climate targets experience more difficult access to capital and higher financing costs, which increases the pressure to adopt.
Conclusion
SBTi targets are establishing themselves as the standard for credible climate strategies and are fundamentally transforming procurement management. The systematic integration of science-based climate targets into procurement processes creates competitive advantages and reduces regulatory risks. Successful implementation requires strategic planning, consistent supplier integration and continuous monitoring. Companies that proactively implement SBTi targets position themselves as pioneers of sustainable transformation.
FAQ
What are the minimum requirements for SBTi targets?
SBTi targets must provide for an annual emissions reduction of at least 4.2% and be compatible with the 1.5°C pathway. Scope 3 emissions must be included if they account for more than 40% of total emissions. The targets require external validation by the Science Based Targets initiative.
How long does the SBTi validation take?
The validation process by the SBTi typically takes 6-12 months. Companies submit their objectives online and undergo a technical review. The process can be extended if there are any queries or adjustments required. Successful validation is a prerequisite for official recognition as an SBTi-compliant company.
What are the costs of SBTi implementation?
Costs vary depending on the size of the company and the complexity of the supply chain. Typical expenses include consulting costs for target development (50,000-200,000 euros), SBTi validation fees (15,000-25,000 USD) and ongoing costs for monitoring and supplier engagement. In the long term, savings can come from efficiency gains.
How are suppliers integrated into SBTi targets?
Supplier integration takes place through multi-stage approaches: First, emissions data is systematically recorded and hotspots identified. Suppliers are then motivated to develop their own SBTi targets through training, technical support and financial incentives. Contractual obligations and regular audits ensure implementation.
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