Setting Science-Based Targets as an SME
The Science Based Targets initiative (SBTi) helps companies set greenhouse gas emission reduction targets that are consistent with what climate science says is needed to limit global warming to 1.5°C above pre-industrial levels. Once seen as a large-company endeavour, SBTi now has a dedicated pathway for SMEs.
What Is SBTi?
SBTi is a partnership between CDP, the United Nations Global Compact, WRI, and WWF. It provides:
- Criteria and guidance for setting science-based targets
- Validation of targets against climate science models
- A public database of companies with approved targets
- Sector-specific guidance for high-impact industries
Companies with validated SBTi targets gain credibility with investors, customers, and regulators. As of 2025, over 7,000 companies globally have committed or set targets.
The SME Pathway
SBTi launched a streamlined route for SMEs (companies with fewer than 500 employees) that is faster and cheaper than the standard corporate pathway:
| Feature | Standard route | SME route |
|---|---|---|
| Scope 1 & 2 target | Required — custom modelling | Required — simplified: halve by 2030 |
| Scope 3 target | Required if Scope 3 is > 40% of total | Encouraged but not required |
| Validation cost | ~€7,500+ | ~€1,000 (subsidised) |
| Timeline | 24 months | 12 months |
| Complexity | High — sector pathway specific | Low — standard 1.5°C template |
Key requirement
Even on the SME pathway, you must have a complete Scope 1 and 2 GHG inventory before you can set a target. This is where the VSME questionnaire's climate section directly helps — it guides you through the data collection.
How SBTi Connects to VSME
The VSME standard's Climate section (C3) asks companies to disclose their GHG reduction targets — including target year, target value, base year, and base year emissions. This is exactly the information needed for an SBTi commitment.
- VSME C3 collects base year emissions (Scope 1 & 2)
- VSME C3 collects target year and target values
- VSME allows Scope 3 opt-out — consistent with SBTi SME pathway
- Completing VSME gives you 80% of the data needed for SBTi submission
Steps to Set Your SBTi Target
- Complete your GHG inventory (Scope 1 & 2 at minimum) using VSME or the GHG Protocol
- Register on the SBTi website and select the SME pathway
- Set your near-term target: halve Scope 1 & 2 emissions by 2030 (SBTi default for 1.5°C)
- Optionally set a Scope 3 engagement target
- Submit for validation (~4-8 weeks for SMEs)
- Publish your commitment and report progress annually
Why bother?
SBTi validation is increasingly a requirement in public procurement, sustainability-linked loans, and supply chain questionnaires. Setting a validated target signals seriousness to partners and investors — and the SME pathway makes it achievable.