SBTi Transforms into Formal Voluntary Standard-Setter with Independent Governance

The Science Based Targets initiative is transitioning from a multi-stakeholder initiative into a recognised formal voluntary standard-setter, with the appointment of an independent Technical Council, a Standard Operating Procedure and a separation of its standard-setting and validation functions into two entities. More than 5,000 organisations have set science-based emission reduction targets since the SBTi was founded ahead of the COP21 Paris Agreement.

The SBTi registered as a UK charity in 2023 and is establishing a subsidiary, SBTi Services Limited, to house target validation services once fully operational. The separation is designed to address governance concerns by removing conflicts of interest between standard development and the commercial validation function. The Technical Council, announced in March 2023 and first convened in June of that year, holds delegated authority from the Board of Trustees to review and approve standards and other normative documents. The Standard Operating Procedure, approved in December 2023, mandates the process all new standards and revisions must follow.

A voluntary standard-setter, as defined by international practice, is a deliberative body responsible for developing, publishing, disseminating and maintaining standards through stakeholder consultation, expert collaboration and evidence-based research. It must also operate complaints and appeals mechanisms, and continuously monitor the impact of adopted standards. The SBTi is finalising internal policies for claims, complaints and appeals, and developing quality and data management systems as part of preparation for ISEAL membership, the international assurance body that validates sustainability standard-setters.

Sector-specific standards under active development as of mid-2024 include Chemicals, Electric Utilities, Oil and Gas and Automotive, all conducted under the SOP. The Financial Institutions Net-Zero Standard is in consultation, and the Corporate Net-Zero Standard is under major revision. For Indian companies and financial institutions increasingly subject to SEBI's BRSR Core requirements and international investor ESG due diligence, alignment with SBTi's evolving governance structure and standards will carry growing strategic importance. The SBTi's improved credibility as a formal standard-setter strengthens the value of SBTi-validated targets in investor and regulatory conversations.

Key figure — SBTi registered as a UK charity in 2023; Technical Council first met June 2023