Science-based targets (SBTi) for IT companies: how to set them

From initial commitment (public announcement of intent to set SBTi targets) to validated targets, the typical timeline is 18–24 months: 6–12 months for GHG inventory and target setting, 3–6 months for SBTi validation review. Companies have 24 months from commitment to target submission. Validation itself typically takes 3–6 months after submission, with the variation driven by documentation quality and whether validators request revisions. Engaging specialist consultants for the inventory and target-setting phase generally reduces the total timeline and improves validation success rate compared to fully internal processes.

The SBTi Corporate Net-Zero Standard (published 2021, updated 2023) defines the requirements for corporate net-zero commitments to be considered science-based. Key requirements: near-term targets (for 2025–2030) requiring rapid emission reductions consistent with limiting warming to 1.5°C; long-term targets reducing absolute Scope 1, 2, and 3 emissions by 90–95% by no later than 2050; and beyond-value-chain mitigation (investment in carbon removal or reduction projects beyond the organisation's own value chain) for the residual 5–10% that cannot be eliminated. The standard specifically prohibits using carbon offsets to compensate for emissions that can be eliminated — offsets can only neutralise the small residual that remains after maximum reduction efforts.

Cloud computing emissions fall under Scope 3 Category 1 (purchased goods and services) — not Scope 2 — because cloud providers are third-party service suppliers rather than providers of direct electricity to the organisation. The Scope 2 market-based vs location-based distinction does not directly apply to cloud computing emissions (though the cloud provider's own Scope 2 accounting affects the emission factors they report to customers). This categorisation matters for SBTi target setting because Category 1 Scope 3 targets require supplier engagement and have different coverage requirements than Scope 2 targets, which benefit from renewable energy procurement options.

CDP (Carbon Disclosure Project) is a disclosure framework — organisations report emissions data and climate governance information to CDP, which scores and publicly discloses the information. It measures the quality and completeness of climate disclosure. SBTi is a target validation body — it validates whether specific emission reduction targets meet the criteria for science-based alignment. They address different questions: CDP measures "how well is this organisation disclosing its climate impact?"; SBTi validates "are this organisation's targets ambitious enough to be consistent with limiting global warming?" CDP's highest scores require SBTi-aligned targets, making them complementary — most organisations that seriously engage with both achieve A/A- CDP scores alongside SBTi validation.

Yes, but with quality constraints. SBTi accepts market-based Scope 2 accounting using energy attribute certificates, but the 24/7 Carbon-Free Energy (CFE) approach (matching renewable energy consumption to generation hour by hour and location by location) is considered stronger than annual matching RECs. Simple annual RECs purchased on secondary markets without additionality, geographic matching, or temporal matching are increasingly scrutinised — many SBTi validators require more robust renewable energy procurement evidence. Power Purchase Agreements (PPAs) with renewable generators and hourly matched RECs provide the strongest evidence for market-based Scope 2 claims.

Software product emissions (SBTi Scope 3 Category 11) can be estimated using two approaches: hardware-based modelling (characterise the hardware fleet on which the software runs, estimate average utilisation attributable to the software, multiply by hardware energy consumption and grid emission factors) or telemetry-based measurement (instrument the software to measure actual CPU cycles, memory usage, and I/O operations, convert to energy consumption using hardware-specific power models). The Green Software Foundation's Software Carbon Intensity (SCI) specification provides a standardised methodology and tooling for the telemetry-based approach. Microsoft has published case studies using SCI methodology for Azure services. The field is actively developing, and SBTi guidance specifically for software company Category 11 measurement is expected in 2026.

SBTi's near-term standard requires that companies with Scope 3 targets covering Category 1 (purchased goods and services) engage their suppliers on emission reduction, with a specific requirement that 67% of Scope 3 emissions from suppliers must be covered by suppliers who have their own SBTi-validated targets by the target year. This "supply chain targets" requirement is driving a cascade of SBTi adoption through supply chains — large technology companies are requiring their major hardware suppliers, cloud providers, and IT services vendors to obtain SBTi validation as a procurement requirement, which in turn pushes those suppliers to require the same of their suppliers.

SBTi's website provides free methodology guides, TARGET DASHBOARD tools, and sector-specific guidance. For specialist support, consultancies including South Pole, ERM, WSP, and Anthesis have dedicated SBTi practices with technology sector experience. Industry coalitions including BSR (Business for Social Responsibility) and the Technology Climate Action Partnership provide peer learning resources for technology companies navigating the SBTi process. The GHG Protocol's Corporate Value Chain Standard (Scope 3 standard) is the foundational reference for Scope 3 inventory methodology. Open-source tools including climatiq.io's emission factor API and the Green Software Foundation's SCI toolchain provide data infrastructure for technology-company-specific emission measurement challenges.