SBTi Doubles Company Participation and Launches Net-Zero Standard in 2021

The Science Based Targets initiative recorded its fastest growth year in 2021, doubling the number of companies setting and committing to set targets and tripling the rate of target validation. The SBTi's Net-Zero Standard, launched ahead of COP26, provided the world's first science-based framework for corporate net-zero target setting.

By end-2021, more than 2,200 companies covering over a third of global market capitalisation were working with the SBTi, at a pace of more than 110 new companies per month. A total of 80% of companies with approved targets in 2021 were aligned with a 1.5 degrees Celsius trajectory. Companies with science-based targets collectively achieved a 12% reduction in scope 1 and 2 emissions in 2020, and a total reduction of 29% between 2015 and 2020. A typical SBTi-approved company reduced scope 1 and 2 emissions at a linear rate of 8.8% per year, well above the 4.2% minimum required.

The 2021 Net-Zero Standard marked a shift from ambition-setting to a science-anchored definition of net-zero, requiring companies to set both near-term and long-term targets and cut all possible emissions by 2050. Seven companies, including Wipro from India, had net-zero targets approved via a pilot programme in October 2021. The launch arrived ahead of COP26 in Glasgow, where heightened global attention on corporate climate pledges elevated demand for credible, independently validated commitments.

Despite record growth, the 2021 report noted significant geographical imbalances, with Europe, the United States and Japan dominating adoption. Companies from non-OECD countries accounted for fewer than 15% of SBTi participation despite representing 67% of global emissions. The SBTi's 2021-2025 strategy targeted rapid expansion in heavy-emitting sectors and emerging markets, with the Country Activation and Incubators Projects focusing on Latin America, Africa and Asia including India.

Key figure — 2,200+ companies covering over one-third of global market capitalisation by end-2021