If a customer has asked you to set a science-based target, you are not alone. By the end of 2025, 12,353 companies had validated science-based targets or had committed to set them, and in January 2026 the Science Based Targets initiative (SBTi) passed 10,000 companies with validated targets. A growing share of those companies are now asking their suppliers to do the same.
The SBTi published Version 2.0 of its Corporate Net-Zero Standard in June 2026, changing how targets are built. However, companies can still use the current Corporate Net Standard. Below, we cover why buyers are asking suppliers to set SBTi-aligned goals, which SBTi Net Zero Standard to apply to your business, and the five steps from an emissions baseline to a validated target.
What Are Science-Based Targets?
Science-based targets are greenhouse gas reduction goals set at the pace climate science says is needed to limit warming to 1.5°C. There are two types. Near-term targets cover the next 5 to 10 years, and net-zero targets aim for net zero by 2050 or earlier.
The Science Based Targets initiative (SBTi) writes the standards companies use to set them. Its subsidiary, SBTi Services, validates submitted targets against those standards. A target built on SBTi's criteria that hasn't been through validation is "SBTi-aligned". One that has passed is "SBTi-validated". When customers ask for a science-based target, they usually mean a validated one, but not always.
Why Buyers Are Asking Suppliers for Science-Based Targets
For most large companies, most emissions sit in Scope 3, meaning their supply chain. They cannot hit their own science-based targets unless their suppliers cut emissions too. That is why so many have set supplier engagement targets, which are commitments that a set share of their suppliers will have science-based targets by a given year.
Here are a few examples, and how they are tracking:
- AstraZeneca set a goal for 95% of spend with key suppliers to be with companies that have science-based targets by 2025. By the end of 2025, over 80% of its eligible spend was with suppliers who had committed to SBTs. The suppliers in the remaining gap are those that have not set targets yet.
- Ulta Beauty has committed that 68% of its suppliers, by emissions from purchased goods and services, will have science-based targets by FY2027. Its 2024 ESG report put the figure at 47% of brand partners, so it has two years to close the gap.
- Aldi South Group, which has SBTi-validated net-zero targets, is encouraging suppliers that account for 75% of its Scope 3 emissions to set science-based targets.
- Microsoft's Supplier Code of Conduct requires suppliers, on request, to disclose Scope 1, 2, and 3 emissions, provide plans to cut absolute emissions from the goods and services they deliver to Microsoft by at least 55% by 2030 (or an alternate target Microsoft approves), and move to 100% carbon-free electricity for that work by 2030.
These requests are not all the same. AstraZeneca and Ulta count suppliers with science-based targets. Microsoft asks for a reduction plan against a specific number. Before you start, find out which one your customer actually needs.
You can check where a customer stands yourself. SBTi's Target Dashboard lists companies that have set science-based targets or committed to developing them, along with those whose commitments were removed. It is updated every Thursday. Look up your customer to see whether its targets are validated and how they are worded, including any supplier engagement target. That shows you what they are working toward before you decide what to commit to.
There are Other Benefits of Setting Science-Based Targets
Customer requests aren't the only reason to do it. In SBTi's own research, 91% of companies said science-based targets had a positive impact on their business, across reputation, strategy, and long-term financial performance. A validated target is also strong evidence in ratings your customers already use. It counts toward CDP's climate scoring, and it supports the environment theme of an EcoVadis assessment.
Also, companies that request SBTi alignment usually request CDP supply chain data at the same time. CDP and SBTi are closely linked in practice: emissions targets, including whether they are science-based, are one of the areas CDP's climate questionnaire asks about directly, and companies can gain additional score by setting them.
SBTi Requirements in 2026 and 2027: V1.3.1 or V2.0?
The SBTi published the final Corporate Net-Zero Standard V2.0 on June 11, 2026. According to the SBTi, companies setting targets in 2026 should use the current Version 1.3.1. V2.0 opens for submissions in early 2027, and V1.3.1 submissions stay open until December 31, 2027. From 2028, all new submissions follow V2.0.
The biggest change for mid-market suppliers is how companies are categorized. V2.0 replaces the old SME route with Category A (larger companies) and Category B (SMEs and medium-sized companies in lower-income countries). Scope 3 target-setting is required for Category A and optional for Category B. V2.0 also splits Scope 1 and Scope 2 into separate targets.
This affects when you choose to file a strategic one. Filing under V1.3.1 now gets you a validated target sooner, which matters if a customer deadline is close. Waiting for V2.0 may mean lighter requirements if you qualify as Category B. That depends on your size, your customers' deadlines, and how complete your Scope 3 data is. It is worth working out before you commit.
For a deeper look at V2.0, see our breakdown of SBTi's Net Zero Standard changes for mid-market businesses.
Setting SBTi Targets as a Small or Mid-Sized Company
Until V2.0 takes over, smaller suppliers have a shorter path. Companies that meet the SBTi's SME criteria can set targets through a streamlined validation route or through the standard route. To qualify, a company must:
- Have under 10,000 tCO2e across Scope 1 and location-based Scope 2
- Not be a subsidiary of a parent company that falls into the standard route
- Meet at least three of these: fewer than 250 employees, turnover under €50 million, total assets under €25 million, and operating outside the mandatory Forest, Land and Agriculture (FLAG) sectors
SME-route targets are absolute Scope 1 and 2 reductions to 2030 from a predefined base year. Scope 3 targets are not part of the route.
Under V2.0, the SME route is replaced by Category B, and most currently under the SME criteria are expected to qualify. If you qualify for the SME route now and a customer wants a validated target within the next year, filing under V1.3.1 is usually the faster path.
How to Set Science-Based Targets: 5 Steps
Step 1: Build a Baseline That Will Survive Review
Every target is measured against a base year, so start with a complete Scope 1, 2, and 3 inventory built on the GHG Protocol. Under the current criteria, Scope 3 decides a lot. If Scope 3 is 40% or more of your total emissions, you need a Scope 3 target, and for most manufacturers and distributors, it is. However, if you qualify as an SME, it is optional. A baseline built on rough spend estimates can get you a target, but it makes the target hard to track and easy to question later. Our Carbon Accounting 101 guide covers how to build one.
Step 2: Confirm What Your Customer Requires
Get the requirement in writing and read it closely. "Set a science-based target" can mean an SBTi-validated target, a target aligned with SBTi criteria but not validated, or a reduction plan against a customer-specified number, as with Microsoft. Each one leads to different work and a different cost. Also check the deadline. It decides whether you file under V1.3.1 or wait for V2.0.
Step 3: Set Targets That Meet SBTi Criteria
Under V1.3.1, near-term targets must:
- Cover a period of 5 to 10 years from the date you submit
- Cover at least 95% of Scope 1 and 2 emissions
- Cover at least 67% of Scope 3 emissions if Scope 3 is 40% or more of your total
- Align Scope 1 and 2 reductions with a 1.5°C pathway
If you set a net-zero target as well, the target year can be no later than 2050.
On the standard route, the timeframe rule catches a lot of people out. A "50% by 2030" target submitted in 2026 covers only four years, so it would not pass validation. A 2026 submission needs a target year between 2031 and 2036. The SME route is the exception: its predefined targets run to 2030. Good.Lab's GHG target-setting team models these pathways against your actual reduction options, so the number you commit to is one you can hit.
Step 4: Submit for Validation
Targets are validated by SBTi Services, the SBTi's validation arm, through its online Validation Portal. You can make a commitment first, which gives you 24 months to submit targets, or you can submit directly. Assessment usually takes up to 12 weeks, and validated companies have six months to announce their targets publicly. Fees depend on company size and target type. Expect questions on your boundary, base year, and methodology. Incomplete submissions come back for revision.
Step 5: Build the Roadmap and Report Every Year
A validated target only matters if you deliver it. Build a decarbonization roadmap that starts with what you control, such as efficiency and electricity procurement, then moves to supplier engagement on Scope 3. Report progress every year, through your sustainability report and through CDP if your customers request it.
Plan for revisions too. Targets must be reviewed at least every five years, and sooner if your business changes significantly. Your first target will not be your last. But if the baseline and the pathway to net zero are built properly from the start, each revision is an update rather than starting over.
Does It Have to Be SBTi?
If your customer specifies SBTi, yes. Other frameworks will not substitute. If they don't, SBTi validation is still the most widely recognized option. Two alternatives you may hear about:
- The Climate Pledge, co-founded by Amazon and Global Optimism, commits signatories to net-zero carbon by 2040. It is a public pledge, not a validation process.
- Race to Zero, the UN-backed campaign behind many corporate net-zero pledges since 2020, is winding down and handing over to a successor initiative focused on implementation. It is not a route to a new validated target.
Where SBTi Target-Setting Goes Wrong
- Scope 3 estimates that don't stand the test of time. Spend-based estimates give you a baseline quickly, but they can't show the effect of supplier action, so targets built on them are hard to track.
- Committing without a plan. Companies that commit but don't get targets validated within the 24-month window have the commitment removed, and the Target Dashboard shows that status publicly.
- The wrong target year or standard. A target year outside the 5-to-10-year window gets sent back. Filing under V1.3.1 when V2.0's Category B rules would have applied can mean taking on Scope 3 obligations you didn't need. Sector rules matter too: most companies use the cross-sector pathway, but some sectors, such as steel, cement and transport, must follow sector-specific guidance.
- Treating validation as the finish line. Customers track your progress every year, through CDP and their own supplier surveys. A target you can't show progress against becomes a problem at renewal time.
How Good.Lab Helps Suppliers Set and Hit Science-Based Targets
Good.Lab pairs GHG accounting software with consultants who have taken clients through baseline development, target modeling, and SBTi validation.
Our GHG target-setting tool maps your Scope 1, 2, and 3 baseline, forecasts reductions under different scenarios so you can see what a target will take, and tracks progress year over year. Our consultants use it to choose the right route, model pathways against your real options, manage the submission, and keep your reporting on track after validation.
Been asked by a customer to set a science-based target? Talk to an expert about which target fits your business and your buyers' deadlines.
Science-Based Targets FAQ
What is the difference between SBTi-aligned and SBTi-validated targets?
An SBTi-aligned target follows the SBTi's criteria but hasn't been reviewed. An SBTi-validated target has been assessed and approved by SBTi Services and is listed on the SBTi Target Dashboard.
How long does SBTi validation take?
Assessment usually finishes within 12 weeks of submission. Validated companies then have six months to announce their targets publicly.
How do I check whether a company has approved SBTi targets?
Search the SBTi Target Dashboard. It lists companies with validated targets, companies that have committed to set them, and companies whose commitments were removed, and it is updated every Thursday.
Do small companies need Scope 3 targets?
Not on the SME route, which covers Scope 1 and 2 targets only. Under V2.0, Scope 3 targets are optional for Category B companies.
Does SBTi validation cost money?
Yes. Fees vary by organization type and size and by target type.
How often do science-based targets need to be updated?
Targets must be reviewed at least every five years, and sooner if the business changes significantly.
