SBTI-PATHWAY

SBTi science-based 1.5degC ~5000 companies 2024.

Definition

SBTi Pathway requirements Corporate Net-Zero Standard 2021: (1) Near-term target (5-10 years horizon): Scope 1 + Scope 2 emissions reduction ~50% by 2030, plus relevant Scope 3 reduction. (2) Long-term target (net-zero by 2050 maximum): 90% absolute emissions reduction Scope 1 + 2 + 3, plus high-quality carbon removals (~10%) net-zero residual. (3) Two methodologies: (a) Sectoral Decarbonization Approach (SDA): sector-specific intensity benchmarks (g CO2/kWh utilities, t CO2/t product steel, etc.), allocate company share of sector budget based on intensity convergence by 2050. (b) Absolute Contraction Approach (ACA): absolute emissions reduction same linear pace as required pathway (4.2% per year 1.5C, 2.5% per year well-below-2C). (4) Removals: limited carbon offsets (e.g., DACCS Direct Air Capture, BECCS Bioenergy with Carbon Capture, nature-based solutions) for residual <10% only. (5) Validation: SBTi technical team reviews + approves targets, publishes validation status. Validation tiers: 1.5C aligned (preferred), Well-below 2C (less ambitious, accepted older targets), Net-Zero (Corporate Net-Zero Standard). ~5000 companies signed 2024 ; ~3500 with validated targets ; financial sector SBTi-FI methodology specific 2022.

Origin

SBTi founded 2015 by CDP + UN Global Compact + WRI + WWF partnership ; Corporate Net-Zero Standard published October 2021 (first comprehensive framework) ; SBTi-FI Financial Institutions methodology 2022 ; ~5000 companies 2024.

Example in context

Microsoft Corporation commits SBTi 1.5C aligned + Corporate Net-Zero 2030 (10 years ahead requirement 2050): near-term 50% Scope 1+2+3 absolute reduction by 2030, long-term carbon negative 2030 + remove all historical emissions since founding by 2050 ; investments DAC Direct Air Capture (Carbon Engineering, Climeworks) + nature-based carbon removals.

Related terms

• PCAF — financial industry standard.