How to Submit Science-Based Targets (SBTi): Complete Guide for Multinationals and SMEs

In January 2026, the Science Based Targets initiative reached a landmark milestone: 10,000 companies with validated science-based targets. Target submissions increased by 30% year-on-year in 2025, and 91% of companies reported that science-based targets had a positive impact on their business, across reputation, strategy, and long-term financial performance.

But the path to a validated target is not the same for every organisation. The SBTi operates two distinct submission routes: the Corporate route (for large companies, typically multinationals or MNCs) and the SME route (for small and medium-sized enterprises). These routes differ significantly in complexity, cost, scope requirements, timeline, and flexibility. This guide explains both routes in full, side by side, so that any organisation can understand exactly what is required, how long it takes, and what it costs to get science-based targets validated.

What Are Science-Based Targets?

Science-based targets are greenhouse gas (GHG) emission reduction targets that are consistent with the level of decarbonisation required to keep global temperature increase to 1.5 degrees Celsius above pre-industrial levels, as set out in the Paris Agreement. The SBTi is a partnership between CDP, the UN Global Compact, the World Resources Institute (WRI), and WWF.

There are two main types of science-based targets. Near-term targets define the emission reductions a company must achieve over the next 5 to 10 years. All near-term targets submitted after July 2022 must be aligned with a 1.5 degrees Celsius pathway. Net-zero targets require companies to achieve at least 90% absolute emissions reductions across Scope 1, 2, and 3, no later than 2050, with any small residual emissions neutralised through high-quality carbon removals. The SBTi's Corporate Net-Zero Standard is the only framework for corporate net-zero target setting aligned with climate science.

MNC vs SME: The Two Routes Compared

The most important question before you begin is: which route does your company qualify for? The answer determines almost everything about the submission process.

Who Qualifies for the SME Route?

Since January 2024, the SBTi defines SMEs based on emissions, not headcount or revenue alone. A company qualifies for the SME route if it has less than 10,000 tonnes of CO2 equivalent across Scope 1 and location-based Scope 2 emissions, is not classified as a Financial Institution or Oil and Gas company, and is not required to set targets using SBTi sector-specific criteria. Companies that exceed the 10,000 tCO2e threshold must use the Corporate route, regardless of their size, revenue, or employee count.

Side-by-Side Comparison

The key difference: The SME route is designed for simplicity. You choose from predefined target options rather than developing custom targets. You do not need to set Scope 3 targets (though you must commit to measure and reduce Scope 3). Your targets are automatically approved pending due diligence, rather than undergoing full technical review. This makes the SME route faster, cheaper, and more accessible, but with less flexibility in target design. 

Step-by-Step: The Corporate Route (MNCs)

Complete Your GHG Inventory

This is the foundation. You must prepare a full company-wide GHG inventory following the GHG Protocol Corporate Standard for Scope 1 and 2, and the Corporate Value Chain (Scope 3) Standard for Scope 3. The inventory must cover 100% of Scope 1 and 2 emissions (you may exclude up to 5% combined), and for Scope 3, you must screen all 15 categories and cover at least 67% of total Scope 3 emissions with specific targets. Choose your organisational boundary method: operational control, financial control, or equity share. The base year must be no earlier than 2015, and the most recent inventory data submitted must be for no more than two years prior to the submission year.

Choose Your Target-Setting Methodology

The SBTi provides two main approaches for cross-sector companies. The Absolute Contraction Approach (ACA) requires a fixed percentage reduction in absolute emissions, regardless of business growth. For 1.5C alignment, this typically means a 4.2% linear annual reduction. The Sectoral Decarbonization Approach (SDA) uses sector-specific intensity pathways, allowing emissions per unit of output to decline at a rate consistent with the global carbon budget for that sector. Most companies use ACA for Scope 1 and 2 and intensity-based approaches for Scope 3 where appropriate. Companies in specific sectors (power, transport, buildings, FLAG) must also apply the relevant sector-specific guidance.

Set Your Near-Term Targets

Near-term targets must cover a minimum of 5 years and a maximum of 10 years from the date of submission. For submissions in 2026, valid target years range from 2031 to 2036. Scope 1 and 2 targets must be 1.5C aligned. Scope 3 targets must cover at least 67% of total reported Scope 3 emissions and be well-below 2C aligned at minimum. The SBTi provides a Target Setting Tool (Excel-based) to help calculate the required reduction rates.

Set Net-Zero Targets (Optional but Recommended)

Net-zero targets under the SBTi Corporate Net-Zero Standard require at least 90% absolute reduction across Scope 1, 2, and 3 by 2050 or earlier, with residual emissions (less than 10%) neutralised through permanent carbon removals. Companies must have validated near-term targets before or alongside net-zero targets. The near-term and net-zero package submission is available at a discounted rate.

Register on the SBTi Validation Portal

Create an account on the SBTi Services Validation Portal. Register your company and provide details including legal entity name, sector classification, annual turnover (to determine your pricing tier), and headquarters location. You can choose to start with a commitment (24-month window to develop targets) or submit targets directly. Submitting directly is faster if your inventory and targets are already prepared.

Prepare and Submit Your Target Package

Complete the SBTi Near-Term and/or Net-Zero submission forms (available on the SBTi Resources page). Your submission package must include your complete GHG inventory (Scope 1, 2, and 3), organisational boundary definition and methodology, base year data and justification, target formulation (reduction percentage, target year, scope coverage), evidence of board or senior leadership endorsement, and any sector-specific documentation (FLAG Annex, transport tool outputs, etc.). Upload all documents through the Validation Portal.

Undergo Validation

SBTi Services conducts a full technical review of your submission. The validation team may send queries for additional information or clarification. You must respond within 2 business days to avoid delays. Results are delivered within 40 business days from the service start date, provided queries are resolved promptly. If your targets are not approved on the first attempt, you receive one free resubmission within six months. Approximately 11% of submissions are rejected on first attempt, typically due to insufficient Scope 3 coverage or targets that do not meet 1.5C alignment.

Announce and Report

Once validated, you have 6 months to announce your targets publicly. SBTi publishes your targets on their website and Target Dashboard. You receive a communications welcome pack and permission to use the SBTi logo. You must report progress annually and undergo a mandatory five-year review to ensure your targets remain aligned with the latest SBTi criteria.

Step-by-Step: The SME Route

Confirm Your Eligibility

Verify that your Scope 1 and location-based Scope 2 emissions are below 10,000 tCO2e. You are not in the Financial Institutions or Oil and Gas sectors. You are not subject to SBTi sector-specific criteria. If your company is a subsidiary of a larger group, the total group emissions and headcount may determine eligibility.

Prepare Your Scope 1 and 2 Inventory

Complete a GHG inventory for Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect emissions from purchased electricity). You do not need to complete a full Scope 3 inventory for the SME route, but you must commit to measure and reduce your Scope 3 emissions over time. The base year must be 2018 or later.

Choose Your Predefined Target Option

The SME Target Setting Form provides predefined target options aligned with 1.5C pathways. You select from the available options rather than developing a custom methodology. All options are absolute contraction targets (not intensity-based). This is the most significant simplification of the SME route: you do not need to use the SBTi Target Setting Tool or understand the Sectoral Decarbonization Approach.

Complete the SME Target Setting Form

Download the SME Target Setting Form from SBTi Services. Fill in your company details, GHG inventory data, selected target option, and billing information. Submit the completed form via the SBTi portal or email to [email protected]. For net-zero targets, use the separate SME Net-Zero Target Setting Form.

Pay the Validation Fee

The fee for SME near-term target validation is $1,250 (Tier 1, turnover less than 5 million euros) or $2,000 (Tier 2, turnover 5 million euros or more). Net-zero targets are available at the same price. A combined near-term and net-zero package costs $2,500 to $3,500. An 85% discount is available for SMEs with revenue less than $10 million headquartered in developing countries as classified by the UN. Submit payment confirmation to [email protected].

Targets Approved and Published

Targets submitted through the SME route are automatically approved and published on the SBTi website, pending due diligence checks. There is no full technical review process. You receive a communications welcome pack and permission to use the SBTi logo. Annual progress reporting and the five-year review requirement still apply.

Validation Costs (2026 Pricing)

SBTi Services uses a tiered pricing model based on annual turnover. The following prices are from the Target Validation Service Offerings Version 6.1 (October 2025), effective from January 5, 2026.

Discount eligibility: Corporate Discount Level 1 ($2,000 for near-term, lowest tier) is available for companies with turnover less than 250M euros headquartered in low-income or lower-middle-income economies. SME Discount Level 2 ($625) is available for SMEs with revenue less than 10M USD headquartered in developing countries per the UN classification. Discounts must be requested during registration. 

Common Pitfalls and How to Avoid Them

Pitfall 1: Underestimating Scope 3

The most common reason for corporate submission rejection is insufficient Scope 3 coverage. The SBTi requires targets covering at least 67% of total Scope 3 emissions. Many companies underestimate their purchased goods and services (Category 1), which often represents 50 to 70% of total Scope 3 for manufacturing companies. Start your Scope 3 screening early and be comprehensive.

Pitfall 2: Choosing the Wrong Base Year

The base year must be no earlier than 2015 and should be representative of normal operations. Avoid COVID-affected years (2020 and 2021) as base years, as artificially low emissions will make targets harder to achieve. The SBTi requires inventory data from no more than two years prior to submission.

Pitfall 3: Incomplete Documentation

Submissions are frequently delayed because companies do not provide sufficient evidence to support their targets. Prepare your documentation thoroughly before submission: organisational boundary justification, emissions calculation methodology, data sources and quality assessment, and board endorsement evidence.

Pitfall 4: Confusing Commitment with Validation

A commitment letter is not a validated target. Companies that sign a commitment letter have 24 months to submit targets for validation. If they fail to submit within this window, their commitment status expires and is publicly marked as expired on the SBTi Target Dashboard. Skip the commitment phase and submit targets directly if your inventory and targets are ready.

Pitfall 5: SMEs Using the Corporate Route Unnecessarily

Some SMEs default to the corporate route because they are unaware of the SME pathway. If your Scope 1 and 2 emissions are below 10,000 tCO2e, the SME route is faster, cheaper, and simpler. Check your eligibility before choosing a route.

After Validation: What Happens Next

Annual reporting. Companies must track and publicly disclose their progress against their targets annually. The SBTi recommends reporting through CDP or your annual sustainability report aligned with GRI Standards (GRI 305) or IFRS S2.

Five-year mandatory review. Every five years from the validation date, companies must review their targets against the latest SBTi criteria. If the criteria have become more stringent (which they have, with the shift to mandatory 1.5C alignment), targets must be updated. Companies due for review in 2025 (validated in 2020 or earlier) may submit updated targets through 2026. The Five-Year Review Guidance and Manual provide step-by-step instructions.

Target recalculation. Targets must be recalculated when structural changes occur: mergers, acquisitions, divestitures, changes in methodology, or significant changes in emissions sources. The SBTi target update service costs $5,500 to $10,000 for corporates (by tier).

Conclusion

Setting science-based targets is one of the most consequential sustainability decisions an organisation can make. It translates climate ambition into a measurable, time-bound, science-aligned commitment that investors, customers, regulators, and employees can hold you to. For multinationals, the process requires significant upfront investment in GHG inventory quality, target methodology, and cross-functional coordination, but the 91% positive business impact rate and access to an increasingly ESG-focused capital market make it a strategic necessity. For SMEs, the streamlined route removes the barriers of cost and complexity, enabling small and medium businesses to demonstrate the same scientific credibility as their larger counterparts at a fraction of the effort.

The SBTi has reached 10,000 validated companies. The question is no longer whether to set science-based targets, but when. Start with the Getting Started Navigator on the SBTi website. Determine your route. Prepare your inventory. And submit.