The Science Based Targets initiative (SBTi) is a global partnership that helps businesses align their greenhouse gas (GHG) reduction strategies with what climate science says is necessary to limit global warming to 1.5°C. While larger corporations have been leading the way, the SBTi is increasingly relevant for small and medium-sized enterprises (SMEs) in the UK.
What Is the SBTi?
The SBTi provides a framework for businesses to set measurable, science-based emissions reduction targets. These targets are then validated by the initiative to ensure they align with the goals of the Paris Agreement. Targets typically focus on reducing Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased electricity), and in many cases Scope 3 (value chain emissions).
For SMEs, the SBTi has simplified requirements, including a streamlined application and reporting process, allowing them to commit without the overheads of larger enterprises.
Why It Matters for UK SMEs
UK policy and public sentiment are shifting rapidly towards decarbonisation. SMEs represent over 99 percent of UK businesses and contribute a significant share of national emissions. As supply chains green up and reporting obligations extend, SMEs are increasingly under pressure to demonstrate credible climate action.
Benefits for SMEs include:
- Access to supply chains: Large organisations are favouring suppliers with clear climate targets. Having an SBTi-validated target can improve chances of winning tenders and staying in the supply chain.
- Brand and customer trust: Consumers and B2B customers alike prefer businesses that show environmental leadership.
- Risk management: Reducing energy use and emissions often cuts operational costs and exposure to volatile energy prices.
- Investment and funding: Many investors and lenders are now screening for sustainability credentials. SBTi targets add credibility.
What Are the Requirements for SMEs?
The SBTi has a dedicated route for SMEs with fewer than 500 employees. This allows companies to commit to reducing Scope 1 and 2 emissions in line with a 1.5°C pathway without the need to set full Scope 3 targets, although they are encouraged to measure and eventually address these too.
The simplified process involves:
- Submitting a short commitment letter.
- Paying a small fee (currently under £1,000).
- Publishing targets within 24 months.
- Reporting progress annually.
There is no need for complex modelling or consultants, though some businesses may choose to get external support.
How to Get Started
- Measure your emissions: Start by calculating your Scope 1 and 2 emissions. Tools like SME Climate Hub, the Carbon Trust, or commercial software can help.
- Assess reduction opportunities: Consider switching to renewable electricity, improving energy efficiency, or electrifying transport.
- Commit to the SBTi: Submit your letter of commitment via the SME route.
- Communicate your actions: Let customers and partners know about your goals and progress.
A Step Towards Long-Term Competitiveness
As the UK moves closer to mandatory climate disclosure and tighter regulation, setting science-based targets positions SMEs to stay ahead of the curve. It sends a clear message of credibility and intent, helping smaller firms remain competitive in a low-carbon economy.
By acting early, UK SMEs can not only help fight climate change but also build stronger, more resilient businesses.
How Zeropath Can Help
Zeropath is a UK-based carbon accounting platform designed specifically for SMEs. It simplifies the process of calculating your carbon footprint, setting reduction targets, and reporting progress in line with initiatives like the SBTi. Whether you are just starting out or looking to formalise your approach, Zeropath provides the tools and support you need to take meaningful climate action – without the complexity.
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