Two Target Types, One Common Goal
The Science Based Targets initiative (SBTi) helps companies align their greenhouse gas emission reduction targets with climate science. However, the SBTi framework includes two distinct target types, and this distinction is frequently confused.
Near-term targets are emission reduction targets to be achieved within 5 to 10 years. Long-term targets are comprehensive transformation plans aimed at reaching net-zero emissions by 2050 (SBTi Corporate Manual, 2023).
Near-Term Targets
What Do They Require?
Near-term targets define how much a company will reduce its Scope 1 and Scope 2 emissions within 5-10 years from a base year. According to SBTi's Criteria and Recommendations:
- Scope 1 and 2 emissions must align with at least a 1.5°C scenario (minimum 4.2 percent annual reduction)
- Scope 3 targets must be set if Scope 3 represents more than 40 percent of total emissions (minimum 2°C-aligned)
- Targets can be set no more than 10 years from the base year
(SBTi Criteria and Recommendations v5.1, 2023)
Who Is It For?
For companies just beginning their climate journey or not yet ready for a net-zero commitment, a near-term target is a strong first step. The validation process is simpler, and companies can start their decarbonization journey with a concrete commitment.
Long-Term (Net-Zero) Targets
What Do They Require?
The SBTi Net-Zero Standard, published in 2021, requires companies to:
- Reduce Scope 1, 2, and 3 emissions by 90 percent or more
- Neutralize residual emissions through permanent carbon removal
- Set near-term targets alongside the long-term commitment
(SBTi Net-Zero Standard, 2021)
A net-zero target encompasses and goes beyond a near-term target. When a company sets a net-zero target, it also sets a near-term target.
Who Is It For?
Companies that want to support their climate strategy with a long-term transformation plan and send a strong signal to investors and stakeholders should opt for a net-zero target.
Comparison
| Feature | Near-Term | Long-Term (Net-Zero) |
|---|---|---|
| Time horizon | 5-10 years | By 2050 |
| Temperature alignment | 1.5°C (Scope 1-2) | 1.5°C (all scopes) |
| Scope 3 | Conditionally required | Required |
| Reduction level | Annual 4.2%+ (Scope 1-2) | 90%+ total |
| Neutralization | Not required | Required (remaining 10%) |
| Validation timeline | 6-12 months | 6-18 months |
The Validation Process
The SBTi validation process follows similar steps for both target types:
- Commitment letter: Formal application to SBTi (targets must be submitted within 24 months of commitment)
- Target development: Emissions inventory, base year selection, target calculation
- Validation submission: Formal submission of targets to SBTi
- Technical review: Assessment of scientific alignment by the SBTi team
- Approval and publication: Publication of targets on the SBTi website
The typical time between commitment and approval is 12-18 months (SBTi, 2023).
Which Approach Should You Choose?
Consider these factors when deciding:
- Existing data capacity: Is your Scope 3 data reliable? Strong Scope 3 data is essential for net-zero.
- Stakeholder expectations: Are your investors and customers expecting a net-zero commitment?
- Sector dynamics: What level of targets are competitors in your sector setting?
- Operational readiness: Do you have the budget and planning capacity to support decarbonization investments?
Starting with a near-term target and transitioning to net-zero as Scope 3 data capacity matures is a pragmatic approach for many companies. According to SBTi's own data, the majority of first-time commitments are near-term targets, with companies upgrading to net-zero commitments as their emissions measurement and reduction capabilities mature over subsequent validation cycles.
Key Takeaway: SBTi validation provides internationally recognized credibility for your climate commitment. Both target types are valuable — what matters most is getting started. The commitment letter is a 15-minute action; building the capacity to meet the target is a multi-year journey that begins with your emissions inventory.
See how enterprise teams track progress toward science-based targets.