Why SMEs Should Set Science-Based Targets

What are science-based targets and SBTi?

Science-Based Targets (SBTs) provide a clear and measurable pathway for businesses to reduce greenhouse gas (GHG) emissions in alignment with global climate goals. These targets are validated by the Science-Based Targets initiative (SBTi), a global organization that helps companies set emission reduction targets in line with the Paris Agreement's goal to limit global warming to 1.5°C above pre-industrial levels.

For SMEs, this generally means:

• Committing to reduce emissions by at least 42% by 2030

• Planning and taking credible action that investors, customers, and regulators recognize

• Future-proofing your business as we transition to a low-carbon economy

Why is setting science-based targets important?

Setting a science-based GHG reduction target helps your business:

• Stay Competitive – More companies and insurers are requiring suppliers to set climate targets.

• Win More Business – Investors and customers prefer working with climate-conscious businesses.

• Reduce Costs & Risks – Energy efficiency and low-carbon strategies can lead to long-term savings.

• Prepare for Regulations – Canada and many other jurisdictions are tightening climate disclosure rules.

How SMEs Can Set a Science-Based Target

Setting a Science-Based Target (SBT) is a straightforward process for SMEs, thanks to the SBTi’s streamlined approach. Businesses that meet the SME criteria—less than 10,000 tCO2e across Scope 1 and 2 emissions, fewer than 250 employees, an annual turnover below €50 million (~74 million CAD), and total assets below €25 million (~37 million CAD)—can follow these steps:

1. Register – Create an account on the SBTi Services Validation Portal to confirm eligibility and classification as an SME.

2. Develop – Calculate your GHG reduction targets to align with the 1.5°C pathway using SBTi criteria and tools.

3. Submit – Upload your targets for validation through the SBTi Services Validation Portal and pay a fee of $1,250 USD

4. Communicate – Announce your validated targets publicly through the SBTi website and stakeholder communications.

5. Disclose – Annually report emissions and progress toward your targets via your company website, sustainability reports, CDP, or CSRD disclosures.

   
   

How can Achieve Sustainability help?

At Achieve Sustainability, we guide SMEs through the process of setting and achieving science-based targets. Our team provides expert consultation to help businesses assess their emissions, set and submit targets, and develop practical reduction plans. Reach out today to book a complimentary consultation!