The Science Based Targets initiative (SBTi) is a global partnership established by CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). Its core mission is to define and promote best practices in corporate emissions reduction, in line with climate science and the goals of the Paris Agreement—to limit global temperature rise to well below 2°C, and ideally to 1.5°C, above pre-industrial levels.

SBTi provides rigorous, science-based criteria and independent validation to assess whether an organization’s greenhouse gas (GHG) emissions reduction targets are truly aligned with the global carbon budget. It has become the benchmark of credibility in sustainability leadership, especially for companies seeking international recognition in ESG, sustainable finance, and low-carbon transition pathways.

A cornerstone of the SBTi approach is the principle of real emission reductions within the value chain. Organizations must demonstrate measurable, direct reductions in their own operations and supply chains—prior to, and not in place of, any reliance on carbon offsets.

SBTi makes this position unequivocally clear:

“Net-zero is not a license to emit.”

Setting a net-zero target does not entitle companies to continue emitting greenhouse gases while merely purchasing carbon credits or planting trees as compensation.

Therefore, carbon offsets—such as afforestation projects or the purchase of carbon credits—cannot be counted toward near-term targets. For example, if a company commits to reducing 42% of Scope 1 and 2 emissions by 2030, that reduction must result from internal measures such as energy efficiency, process innovation, or a shift to renewable energy—not from external compensation mechanisms.

Offsets are only permissible once an organization has reached the Net Zero Target Phase, typically between 2040 and 2050, and only for residual emissions that are technically or economically unfeasible to eliminate.

Even then, eligible offsets must involve permanent carbon removals—such as:

• Verified afforestation or reforestation,
• Direct air carbon capture and storage (DACCS),
• Certified blue carbon projects (e.g. wetland or mangrove restoration),
  accompanied by robust monitoring, reporting, and verification (MRV) systems.

Importantly, “avoided emissions”—such as preventing future deforestation or investing in third-party carbon credit schemes—are not accepted under SBTi criteria for Net Zero accounting.

SBTi’s rigorous stance reflects a deeper ethical framework: that climate responsibility cannot be outsourced. Organizations must first address their own emissions at the source and ensure structural decarbonization before seeking external compensation.

For businesses seeking meaningful alignment with global climate goals, the path forward is clear:
Prioritize absolute emissions reductions, disclose transparently, and contribute to systemic change. Only through this approach can companies credibly participate in the transition toward a just, sustainable, and science-aligned global economy.