Why setting an SBTi target matters for you

Think of your customer as a marathon runner—they have a strict finish line for carbon reduction (their Scope 3 targets), and every step they take depends on your pace. If you don’t move in the same direction, you slow them down and risk being left behind.

Many large companies now have aggressive Scope 3 targets, meaning they’re counting on you to cut emissions. Doing this helps you stay in their supply chain, win more business, and meet growing expectations from regulators and investors. It’s not just about compliance; it’s about staying competitive.

Why this matters commercially

Win more business: Customers prefer suppliers aligned with their sustainability goals.
Avoid risk of deselection: Non-compliant suppliers face being dropped.
Stay ahead of regulation: Future-proof your operations against evolving climate policies.
Access financing: Investors and lenders increasingly prioritize low-carbon suppliers.

Step 1: Understand what an SBTi target is

Think of an SBTi-aligned target as your GPS for climate action. It provides a clear destination and milestones—based on climate science—so your efforts align with the global goal of limiting warming to 1.5°C. These targets are recognized internationally and signal credibility to your customers.

Step 2: Map your current emissions (your starting point)

Before any journey, you need to know your starting point. That’s your greenhouse gas (GHG) inventory:

Scope 1: Direct emissions from fuel you burn (e.g., factory equipment, company vehicles).
Scope 2: Indirect emissions from the electricity you purchase.
Scope 3: Emissions across your value chain—materials you buy, logistics, waste, business travel, and how customers use your product.

For most suppliers, Scope 3 is the largest part. If it accounts for more than 40% of your total emissions, SBTi requires a target covering at least 67% of those emissions.

You may have already completed this step through a data request completed on Avarni. If that's the case, you can move onto the next step.

Step 3: Set your ambition (how fast you want to run)

Targets come in two main types:

Near-term targets: Action within the next 5–10 years, often aiming for 2030 milestones.
Net-zero targets: Longer-term commitments to reach near-zero emissions by 2050.

Start with a near-term target to demonstrate progress quickly. For example, reduce absolute emissions by at least 4.2% each year.

Step 4: Choose your method (your route)

There are three common approaches:

Absolute reduction: Commit to cutting your total emissions by a set percentage each year.
Renewable electricity: Shift your electricity consumption to renewable sources—80% by 2025 and 100% by 2030 is the recommended goal.
Sector-specific approach: If you’re in one of the following industries, use SBTi’s sectoral guidance for intensity-based reductions. Click on the link to see the SBTi's specific guidance for your industry.

Step 5: Make it official (submit your target)

Once your targets are ready:

Complete the SBTi submission form.
Provide your emissions inventory, chosen target approach, and supporting documents for validation.
If you are classified as an SME, there is a simpler approach to getting validated.
An SME is classified as:
- Have <10,000 tCO2e across scope 1 and location-based scope 2
- Are not a subsidiary of a parent company whose combined businesses fall into the Standard validation route
- Are not classified in the Financial Institutions (FIs) and Oil & Gas (O&G) Sectors
- Are not required to set targets using sector-specific criteria (such as the Sectoral Decarbonization Approaches) developed by the SBTi (see the SBTi’s sector guidance documents for requirements)
- Meet 3 or more of the following criteria:
  - Employ <250 employees
  - Turnover of <€50 million
  - Total assets of <€25 million
  - Are not in a mandatory Forest, Land and Agriculture Guidance sector

Step 6: Integrate and communicate (walk the talk)

Announce your targets publicly—on your website, in reports, and to customers. This builds trust.
Embed targets into your business processes: procurement decisions, supplier contracts, budgets, and leadership performance metrics.

Step 7: Track progress (don’t set and forget)

Report progress every year through platforms like Avarni or your own sustainability updates.
Revalidate targets at least every five years or sooner if your business changes significantly (e.g., mergers, acquisitions, or major shifts in operations).

Myths vs. truths for suppliers

Myth: “We’re too small for this to matter.”
Truth: Large customers track emissions from all suppliers, big or small.
Myth: “It’s too expensive.”
Truth: Many actions reduce costs over time (e.g., energy efficiency).
Myth: “We’ll wait until customers force us.”
Truth: Acting early gives you a competitive edge and preferred supplier status.
Myth: “This is just a marketing exercise.”
Truth: SBTi targets are science-based and increasingly required for tenders and compliance.
Myth: “We don’t have the data to start.”
Truth: You can start with estimates using spend-based data and refine later.
Myth: “We can offset instead of reducing emissions.”
Truth: SBTi does not allow offsets to replace real emissions reductions.