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Procurement Glossary
SBTi Targets: Science-Based Climate Targets in Procurement
March 30, 2026
SBTi targets are science-based climate targets that help companies align their emissions 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. Below, learn what SBTi targets are, which implementation methods exist, and how they are used strategically in procurement management.
Key Facts
- SBTi stands for Science Based Targets initiative and defines scientifically grounded emissions reduction targets
- Targets must be compatible with the 1.5°C pathway of the Paris Climate Agreement
- More than 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
Content
Definition: SBTi Targets
SBTi targets are quantified emissions reduction targets that are validated by the Science Based Targets initiative and aligned with the latest findings in climate science.
Core elements of science-based targets
The Science Based Targets initiative defines specific criteria for valid climate targets:
- Compatibility with the 1.5°C warming scenario
- Coverage of all relevant emissions scopes (Scope 1, 2 and 3)
- Time-bound and measurable reduction pathways
- External validation by SBTi experts
SBTi targets vs. conventional climate targets
Unlike 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 procurement organizations, SBTi targets mean a strategic realignment of sourcing. Supply Chain Decarbonization becomes the central success factor, as Scope 3 emissions often account for 70-90% of total emissions.
Methods and approach for SBTi targets
Implementing SBTi targets requires structured methods for emissions measurement, target setting, and supplier integration.
Emissions accounting 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 later progress measurement.
Target setting according to SBTi criteria
SBTi-compliant targets follow specific reduction pathways:
- Absolute emissions reduction of 42% by 2030 (base year variable)
- Annual reduction rate of at least 4.2%
- Inclusion of Scope 3 emissions when they exceed 40% of total emissions
- Separate targets for different emissions categories
Supplier engagement and implementation
Practical implementation takes place through systematic supplier engagement. Supplier Code of Conduct are expanded to include climate commitments, and suppliers are supported in developing their own SBTi targets.
KPIs for management
Measuring the success of SBTi targets requires specific KPIs that reflect both absolute emissions reductions and operational progress.
Emissions KPIs and reduction progress
Key KPIs include annual emissions reduction in CO2e, broken down by Scope 1, 2 and 3. Progress is measured as a percentage of the baseline, with the targeted annual reduction rate of 4.2% serving as the benchmark.
Supplier performance indicators
Supplier-related KPIs measure the quality of implementation in the supply chain:
- Share of suppliers with their own SBTi targets
- Average emissions intensity per supplier
- Number of conducted Supplier Energy Audit
- Compliance rate with sustainability requirements
Procurement efficiency and cost KPIs
Operational KPIs assess the efficiency of sustainable procurement. These include cost development per ton of CO2 saved, the number of implemented Material Substitution (ESG), and the reduction of the Product Carbon Footprint (PCF) in critical product categories.
Risks, dependencies and countermeasures
Implementing SBTi targets involves operational, financial, and strategic risks that must be managed proactively.
Supply chain dependencies and implementation risks
Achieving SBTi targets depends heavily on suppliers' willingness to cooperate. Lack of transparency in Scope 3 Emissions and insufficient data quality can jeopardize target achievement. Countermeasures include systematic supplier training and contractual obligations.
Cost risks and budget impacts
The transition 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 supplier changes with transition costs
Reputational and compliance risks
Failure to meet SBTi targets can lead to significant reputational damage. Procurement Compliance risks arise from tightening regulation and potential sanctions for failing to comply with climate commitments.
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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 at the same time.
- Contractual anchoring of climate commitments
- Establishment of a supplier support program
- Continuous monitoring and reporting
Current developments and impacts
The development of SBTi targets is being driven by regulatory requirements, technological innovations, and changing stakeholder expectations.
Regulatory drivers and compliance
New EU regulations are increasing the pressure for science-based climate targets. The Corporate Sustainability Reporting Directive (CSRD) and the Supply Chain Due Diligence Act create legal frameworks that establish 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 measurement, predictive analyses for supplier risks, and optimized procurement strategies for achieving targets. Machine learning algorithms identify decarbonization potential in complex supply chains.
Financial markets and investor pressure
Investors and financial institutions are increasingly integrating SBTi targets into their evaluation criteria. Companies without science-based climate targets face more difficult access to capital and higher financing costs, which increases adoption pressure.
Conclusion
SBTi targets are becoming 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 SBTi validation take?
The validation process by the SBTi typically takes 6-12 months. Companies submit their targets online and undergo a technical review. If there are questions or a need for adjustments, the process may take longer. Successful validation is a prerequisite for official recognition as an SBTi-compliant company.
What costs arise with SBTi implementation?
Costs vary depending on company size 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 result from efficiency gains.
How are suppliers integrated into SBTi targets?
Supplier integration takes place through multi-stage approaches: first, emissions data is systematically collected and hotspots are identified. Suppliers are then encouraged through training, technical support, and financial incentives to develop their own SBTi targets. Contractual obligations and regular audits ensure implementation.
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