How to Set Science-Based Targets (and Meet Buyer Expectations

In today’s climate of heightened scrutiny and evolving supply chain mandates, establishing robust GHG targets is no longer optional—it’s a business imperative. Buyers and supply chain partners demand science-based targets to ensure genuine progress toward decarbonization.

When setting climate goals, the first GHG target you set should be your last target—meticulously planned from baseline to net zero. To help you achieve this, Good.Lab’s team of experts has developed five essential steps to build robust, science-based targets that are both credible and measurable, perfectly aligned with frameworks like the SBTi. This approach ensures that your sustainability strategy not only meets regulatory standards but also secures your competitive edge.

Why Set a Science-Based GHG Emissions Reduction Target

Regardless of your company’s size, sector, or location, climate targets are becoming a critical way for investors, employees, and consumers to know you are serious about your climate impact. Smaller companies supply larger companies, and they are critical to meeting the requests of customers to set science-based targets.

• Meet Buyer Expectations: Companies like Aldi, Ulta Beauty, and AstraZeneca now require suppliers to set science-based targets. By aligning your targets with the expectations of your customers, you position your business as a trusted and forward-thinking partner.
• Enhance Brand Reputation & Reduce Risk: Robust GHG targets build stakeholder trust, mitigate regulatory and reputational risks, and often uncover operational efficiencies that translate into cost savings.
• Improve ESG Ratings: A well-defined target can boost your sustainability ratings with agencies like CDP and EcoVadis, further validating your commitment to climate action.

Companies with Supplier SBTi Expectations

Below, you’ll find examples of companies embedding clear supplier SBTi expectations into their strategies—pioneering a model where climate accountability reaches every link in the supply chain with science-based climate targets.

• Aldi: Aiming for suppliers responsible for 75% of its product-related emissions to establish science-based targets by 2024.
• Ulta Beauty: 68% of suppliers (by emissions) covering purchased goods and services will set science-based targets by FY2027.
• AstraZeneca: Targeting 95% of key supplier spending with companies committed to approved science-based targets by 2025.
• Neiman Marcus Group: 75% of suppliers (by spending) covering purchased goods and services will set science-based targets by 2028.
• Hyatt: 41% of suppliers (by emissions) covering purchased goods and services will set science-based targets by 2025.

Why Science-Based Targets Meet Buyer Expectations

In today’s market, buyers demand more than just words—they expect suppliers to demonstrate measurable sustainability progress. Given the examples from companies above, it’s clear customers expect this level of accountability. By aligning your strategies with recognized standards, you show that your business is not only prepared for the future but is actively shaping it. This transparency and commitment to real progress make your brand a trusted choice for buyers looking for partners who share their values and are ready to drive meaningful change .

How to Set Science-Based GHG Targets: 5 Simple Steps

Step 1: Establish Your GHG Baseline

Calculate your Scope 1, 2, and 3 emissions to create an accurate baseline. This data is essential for setting a reduction goal, informing your strategy, and allocating resources effectively.

Launch Your GHG Journey Kickstart your science-based target setting. Get your baseline with Good.Lab →

Step 2: Benchmark Your Performance

Conduct a comprehensive benchmarking assessment to understand what your peers, competitors, and key customers are doing. This insight helps you set an ambitious yet realistic target that meets industry standards.

Benchmark Like a Pro Fine-tune your climate goals using data from thousands of peers →

Step 3: Set a SMART Climate Goal

Define a specific, measurable, achievable, relevant, and time-bound goal. For example, commit to a science-based net-zero target by 2050 with an interim goal of 50% reduction by 2030. Align your goal with frameworks like SBTi, The Race to Zero, or The Climate Pledge for added credibility, or determine if your customers stipulate a particular reduction or approach. For example, Microsoft requires its suppliers to set a science-based goal of reducing emissions by 55% by 2030.

Smart Target, Bold Impact Define your climate goal using proven frameworks →

Step 4: Create Your Decarbonization Roadmap

Develop a detailed plan to achieve your target. Start with quick-win initiatives like energy efficiency improvements, then scale up to larger investments in renewable energy and supplier collaborations to address the largest source of emissions for most companies, Scope 3 emissions. A clear roadmap ensures you remain on track while adapting to new challenges.

Turn Targets into Action Transform your decarbonization plan into results with our custom roadmap →

Step 5: Report and Track Progress Annually

Integrate your target into your annual sustainability reporting—whether mandated or voluntary—and monitor your emissions each year. Transparent tracking not only builds trust but also helps refine your strategies over time.

Track Your Impact Monitor your progress and refine your strategy annually →

For companies that have not yet had a customer define their approach to GHG target setting, voluntarily aligning with and getting validated by one of the following groups can bring legitimacy to your carbon reduction goals:

• SBTi: Considered the gold standard in setting and validating emissions reduction goals. The Science Based Target initiative has over 10,000 companies that have set science-based emissions reduction targets aligned with the Paris Agreement and more than 7,000 with validated targets.
• The Race to Zero: An UN-backed group that helps businesses, cities, and investors to commit to net-zero emissions by 2050, with interim reduction goals.
• The Climate Pledge: A commitment co-founded by Amazon and Global Optimism, where companies pledge to reach net-zero carbon emissions by 2040, a decade ahead of the Paris Agreement.

By following these five simple steps, you can confidently set your first—and only—GHG target as the foundation for your journey to net zero. With Good.Lab’s proven expertise, your sustainability strategy will not only meet regulatory requirements but also secure a competitive edge in today’s market. Embrace this roadmap to drive impactful, long-term change for your business and pave the way toward a sustainable future.

How Good.Lab Helps Companies Set + Achieve GHG Targets

Setting science-based GHG targets is far more than ticking a compliance checkbox—it’s a thoughtful, systematic process. It begins with establishing your emissions baseline, continues through benchmarking and target setting, and extends to ongoing reporting and tracking.

Good.Lab supports companies at every step—helping them measure your initial carbon inventory, benchmark against an extensive database of companies, set targets that align with business and stakeholder needs, and develop a roadmap for continuous improvement with comprehensive reporting and annual tracking.

Today, companies face unprecedented scrutiny on their GHG targets and overall climate performance. With many large buyers requiring their suppliers to have science-based targets, it’s critical to get it right the first time. Good.Lab’s GHG Target Setting solution—combined with our suite of complementary sustainability capabilities—ensures you’re fully prepared to meet these demands.

Ready to simplify your GHG target-setting process?

Discover how Good.Lab’s software-powered consulting capabilities transform the business sustainability journey—no matter where you are on your path. Connect with our team today to learn how we can help you set credible, science-aligned targets that meet both buyer expectations and regulatory demands.