SBTi · INDIAN AND GLOBAL CORPORATES

A science-based target is a promise your Scope 3 number cannot back up yet.

Validation asks for the base-year number first. Everything else follows from that.

Runs on your public disclosures. Nothing from you.

Deadline: Two years from SBTi commitment to validated target In scope: Any company that commits or is asked by a customer Penalty: Public commitment removed, brand and RFP consequences
This is for

You are the Head of ESG at a large-cap Indian corporate, or an Indian arm of a global one. Your biggest customer asked for a Scope 3 target. The commitment letter is easy. The number to back it is not.

The answer

SBTi is the Science Based Targets initiative, a global body that validates corporate emission-reduction targets against a 1.5°C pathway. The current standard is the Corporate Net-Zero Standard v1.2 (April 2024). A company commits, submits its base-year inventory, submits its target, and SBTi either validates it or rejects it. Around one in three submissions fails on data quality before it fails on ambition.

What SBTi actually is

SBTi accepts near-term targets (5 to 10 years out), long-term targets (2050 or earlier), and net-zero targets that combine both. Every target uses a base year, an absolute or intensity metric, and a scope declaration (1, 2, 3).

The Scope 3 requirement is the one most Indian companies fail. If Scope 3 is more than 40% of total emissions (it usually is), the company must set a Scope 3 target covering at least two thirds of the category. Getting the two-thirds coverage right needs a Scope 3 screen every category, not a wave of the hand.

Once validated, the target is public on the SBTi dashboard with a status: Committed, Targets Set, or Removed. Removed is what happens to companies that miss the two-year deadline from commitment to validated target.

Why now

A customer questionnaire (Wipro, Infosys, HUL, Airbus, a European buyer) asks for a validated SBTi target. Without one, the RFP is at risk. Without the base-year number, the target is unbuildable. The two-year clock from commitment to validation is short if the number is not in hand.

WHAT BREAKS

What breaks when your carbon number is not defensible.

Three failure modes we see on every SBTi scan.

FAILURE 01

A Scope 3 number built on category averages

The company uses ICAI-published averages for supplier emissions across all 15 Scope 3 categories. SBTi validation asks for the calculation method per category. The number gets kicked back.

FAILURE 02

A base year picked because it looks good

The company picks a base year with unusually high emissions so the reduction target looks generous. SBTi requires the most recent full year of data. The submission is invalid.

FAILURE 03

A target that covers less than two thirds of Scope 3

The company sets a Scope 3 target on Category 1 only. SBTi requires two-thirds coverage across the material categories. The target is rejected.

HOW CARBON-OS ANSWERS

Three moves that make SBTi defensible.

ANSWER 01

A Scope 3 screen every category

Carbon-OS runs a screen across all 15 categories, sizes each one, and defines the "material" set that must be in the target. Two-thirds coverage becomes an evidence exercise, not a guess.

ANSWER 02

A base-year number built from real data

Every base-year figure carries its source (ERP, invoice, supplier data). Every method carries its citation. The base year survives the validation reviewer.

ANSWER 03

A target aligned to SBTi Sector Guidance

For heavy sectors (steel, cement, chemicals, transport, financial), Carbon-OS applies the SBTi Sector Guidance directly. Ambition is calibrated once, not iterated in three rounds.

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METHODOLOGY

The hard part is the data, not the carbon.

Four steps a Carbon-OS engagement runs for SBTi, in order.

01

Scope 3 category screen

All 15 categories screened for materiality using the SBTi Scope 3 minimum boundary rules.

02

Base-year inventory

A full Scope 1, 2 and 3 inventory for the base year, sourced line by line with evidence.

03

Target design

Absolute contraction, intensity, or SBTi Sector Guidance path, matched to the company shape.

04

Submission and validation

SBTi Target Setting form filled and submitted. Validation feedback handled inside Carbon-OS.

TIMELINE

The phases of a SBTi programme.

Month 1

Commitment and scope

Commitment letter filed with SBTi. Board scope confirmed. Two-year clock starts.

Months 2 to 3

Scope 3 screen

All 15 categories sized. Material categories identified. Two-thirds coverage designed in.

Months 4 to 6

Base-year inventory

Scope 1, 2 and 3 built line by line for the base year. Evidence captured.

Months 7 to 8

Target design

Target set against SBTi criteria, tested for Sector Guidance alignment.

Month 9

Submission

SBTi Target Setting form submitted. Validation queue: 6 to 8 weeks average.

Month 11 or 12

Validation and publish

Target validated, published on the SBTi dashboard, status becomes Targets Set.

COMPARE

SBTi against the two nearest frameworks.

DimensionCDPBRSR Core
PurposeVoluntary annual investor-facing disclosureMandatory Indian regulatory disclosure
ScopeClimate, water, forests strategy and metricsNine attributes across environmental, social, governance
Targets required?Yes, for a top scoreNot mandated, but disclosure of targets required
Uses SBTi?Cross-references SBTi validation in scoringBRSR asks whether the company has an SBTi target
EVIDENCE CHECKLIST

What a Carbon-OS SBTi scan produces.

Every item on this list is what an auditor asks for on SBTi work.

  • Scope 3 screen: Materiality table for all 15 Scope 3 categories, with size and inclusion decision.
  • Base-year inventory: A tonnage-per-source table for Scope 1, 2, 3, with an evidence link at every line.
  • Target design pack: Contraction rate, intensity metric, or sector path, with the SBTi criterion each satisfies.
  • Sector Guidance check: For heavy sectors, the applicable SBTi Sector Guidance and the fit assessment.
  • Submission form: The SBTi Target Setting form filled in Carbon-OS, exported, and submitted.
  • Validation response pack: Every SBTi reviewer question, with the answer and the underlying evidence.
CASE STUDY

Placeholder

Case-study copy for SBTi arrives in a follow-up pass. It will slot in here.

FAQS

What people ask, straight.

How long does SBTi validation take?

Around six to eight weeks in the current queue, once the target is submitted. The two-year clock from commitment to validation includes the time you take to build the base-year number, which is the long pole.

Do we need to cover 100% of Scope 3?

No. SBTi requires two-thirds coverage across the categories that are material for your business. The rest can be excluded with a documented reason.

Can we skip Scope 3 if it is under 40% of total emissions?

Yes, that is the SBTi threshold for a mandatory Scope 3 target. Most Indian corporates cross the threshold, so the exception is rare.

What is the difference between near-term and net-zero targets?

Near-term is a 5 to 10 year target, typically a 42% absolute reduction by 2030. Net-zero is by 2050 or earlier, requires deep decarbonisation of at least 90%, and neutralises the residual with permanent removal.

Do banks and insurers follow the corporate standard?

No. Banks and insurers use the SBTi Financial Sector Guidance, which sets targets on financed emissions using PCAF as the accounting method.

What happens if we miss the two-year deadline?

The public status changes from "Committed" to "Removed". The company appears in the SBTi Removals list. That list is public. Customers and investors read it.

Can we use offsets to meet the target?

No. Offsets do not count towards the reduction target. They can only be used for beyond-value-chain mitigation and for the final residual under the Net-Zero Standard.

Does SBTi validate carbon-credit purchases?

No. SBTi validates emission-reduction targets, not credits. A separate integrity body (VCMI, ICVCM) governs the credits side.

Which sectors have specific SBTi guidance?

Power, cement, iron and steel, aluminium, chemicals, oil and gas, transport (aviation, shipping, road), buildings, forest-land-agriculture (FLAG), and financial institutions. If you are in one of these, use the sector guide.

Who inside our company owns the SBTi target?

The Head of ESG builds it. The Chief Financial Officer signs the commitment letter and the target. The CEO endorses publicly. All three names go on the submission.