SBTi Urges All Companies to Adopt Net-Zero Targets and Disclose Progress

The Science Based Targets initiative is calling on companies and financial institutions to escalate their climate commitments by upgrading to net-zero targets and improving annual emissions disclosure. The appeal follows the initiative's 2023 Monitoring Report, which showed that while SBTi adoption is rising, the pace is insufficient to halve global emissions by 2030.

Companies with existing science-based targets are urged by the SBTi to upgrade to net-zero targets if they have not done so, disclose emissions and target progress annually using the SBTi Corporate Manual, and actively encourage suppliers, customers and even competitors to set their own targets. Those that have made commitments but not yet submitted targets are advised to prepare their validation submissions promptly and book slots in advance, as SBTi validation queues have lengthened alongside rising demand.

The SBTi's call to action comes as companies face increasing external pressure from investors, regulators and supply chain counterparties. In India, SEBI's Business Responsibility and Sustainability Reporting requirements are pushing listed companies to demonstrate alignment with international climate frameworks, making SBTi validation an increasingly relevant benchmark for large corporations and their Tier 1 suppliers.

A key enforcement mechanism is the SBTi's commitment removal policy: companies that commit to set a target but fail to do so within two years have their commitment marked as removed on the public SBTi database. This public accountability mechanism has already motivated companies to accelerate submissions. The SBTi expects net-zero target adoption rates to continue rising as its Financial Institutions Net-Zero Standard approaches publication.

Key figure — 2-year deadline for companies to validate targets after committing or face removal from SBTi database