Question 1

What is SBTi and what does SBTi standards alignment mean?

Accepted Answer

The Science Based Targets initiative (SBTi) is an independent body that enables companies to set greenhouse gas emissions reduction targets aligned with climate science — specifically with the 1.5°C pathway required to limit the worst impacts of climate change. SBTi standards alignment means that a company's near-term (5–10 year) and long-term (net-zero by 2050) emissions reduction targets have been validated by the SBTi against its Corporate Net-Zero Standard and sector-specific methodologies. Ledger2Carbon's SBTi standards alignment platform provides the Scope 1, 2 and 3 GHG inventory data, target tracking infrastructure, and audit-ready evidence management required to achieve and maintain SBTi validation.

Question 2

What Scope 1, 2 and 3 data does SBTi require for target validation?

Accepted Answer

SBTi validation requires a complete and credible GHG inventory covering Scope 1 (direct emissions from owned sources), Scope 2 (indirect emissions from purchased energy), and Scope 3 (all other indirect emissions across the value chain). For near-term targets, companies must cover at least 95% of Scope 1 and 2 emissions and a significant portion of Scope 3 emissions — with full Scope 3 coverage required for the SBTi Corporate Net-Zero Standard. Ledger2Carbon's SBTi standards alignment platform builds this inventory using a finance-first approach, mapping transactions from existing ERP and financial systems to emission factors with full traceability — producing the audit-ready Scope 1, 2 and 3 data that SBTi validators and external assurance providers require.

Question 3

How does Ledger2Carbon support annual SBTi progress reporting?

Accepted Answer

After initial SBTi validation, companies are required to report progress against their science-based targets annually — disclosing actual emissions against the committed reduction pathway and explaining any deviations. Ledger2Carbon's SBTi standards alignment platform automates this process by tracking actual Scope 1, 2 and 3 emissions against the validated reduction trajectory in real time, flagging target gaps before reporting deadlines, and generating progress reporting outputs aligned to SBTi disclosure requirements and compatible with CSRD, GRI, and ISSB sustainability report disclosures. Target ownership assignment ensures the right business units are accountable for delivering on their portion of the company-wide reduction commitment.

Question 4

What is the SBTi Corporate Net-Zero Standard and how does it differ from near-term targets?

Accepted Answer

The SBTi Corporate Net-Zero Standard requires companies to set two connected science-based targets: a near-term target (emissions reductions of at least 42% by 2030 from a 2019–2021 base year, covering Scope 1, 2 and material Scope 3) and a long-term target (emissions reductions of at least 90% by no later than 2050, with residual emissions addressed only through verified carbon removal — not offsetting). This distinguishes SBTi net-zero from voluntary "net-zero" claims that rely heavily on carbon credits. Ledger2Carbon's SBTi standards alignment platform tracks progress against both target levels simultaneously, maintaining the evidence trail needed to demonstrate genuine deep decarbonisation rather than offset-dependent claims.

Question 5

How does SBTi alignment integrate with CSRD and ESG reporting obligations?

Accepted Answer

SBTi-validated targets are directly referenced in CSRD sustainability statements under ESRS E1 (Climate Change), which requires disclosure of GHG reduction targets, the methodologies used to set them, and annual progress. Companies with SBTi-validated targets can reference this validation as evidence of science-based methodology alignment within their CSRD disclosures. Ledger2Carbon's SBTi standards alignment platform shares the same underlying Scope 1, 2 and 3 carbon accounting data foundation as its CSRD, ESRS, and GRI reporting modules — meaning target tracking data, progress metrics, and evidence files produced for SBTi can flow directly into CSRD and GRI sustainability report disclosures without duplicating data collection.

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