How to Set Science-Based Targets as a Small Private Company

Apr 2

A customer sends you an RFP. In the supplier sustainability section, there's a question you weren't expecting: "Do you have a science-based target?"

You don't. But now you realize you probably need one.

You look it up. The Science Based Targets initiative (SBTi) sounds credible and legitimate. It's something you want to be able to say yes to the next time someone asks.

Setting a science-based target is easier than most companies expect. What catches companies off guard is everything that comes after.

For most small private companies I work with, this is where expectations and reality start to diverge.

This post covers both: how to actually set a science-based target as a small private company, and what the commitment looks like once you've done it.

What you'll learn

What a science-based target actually is (and why customers care)
Whether you qualify for the SME pathway (SBTi for SMEs)
The exact steps to set a target
What ongoing commitments companies underestimate

What a science-based target actually is

A science-based target is an emissions reduction goal that's been validated by the SBTi as consistent with limiting global warming to 1.5°C. It's not a pledge you make on your website. It's a target that's submitted, reviewed, and published on the SBTi's database, which is what makes it credible with customers and investors who know what to look for.

The most common pressure source I see for private companies is B2B customers. If you sell to large companies that have made their own climate commitments, they're now looking at their supply chain to follow through.

A science-based target is one way to show you're serious.

The SME pathway (SBTi for SMEs) and why most small private companies qualify

The SBTi has a streamlined route for small and medium-sized enterprises that most private companies don't know exists. To qualify, your company needs fewer than 10,000 tonnes of CO2e across Scope 1 and 2 emissions, and must meet at least three of the following: fewer than 250 employees, under €50 million in annual turnover, or under €25 million in total assets. Most small professional services and pharma companies will qualify.

The SME pathway is meaningfully different from the standard corporate route:

You choose from two predefined target options rather than building a custom methodology from scratch
The Scope 3 requirements are lighter. You're expected to measure and actively reduce value chain emissions over time, but you're not required to set a formal, quantified Scope 3 reduction target
The process is faster and less resource-intensive than the full corporate validation route

For most small private companies getting their first ESG request, this is the right pathway. It's rigorous enough to be credible. It's practical enough to actually complete.

The two phases of SBTi

Phase 1: Set the target (fast, structured) Carbon footprint, submit, validate.

Phase 2: Deliver on it (ongoing, operational) Annual reporting, reduction plan, internal change.

Most companies focus on Phase 1. Phase 2 is what determines whether the target actually delivers value.

How the process works

The steps are straightforward.

1. Start with a carbon footprintYou can't set a reduction target without knowing your baseline emissions. This means completing a Scope 1, 2, and 3 greenhouse gas inventory for your chosen base year. This is typically the most time-consuming part of the process and where most companies need outside support.

2. Determine your eligibility Check whether you qualify for the SME pathway or need to use the standard corporate route. The key criteria are employee count, revenue, and total assets. If you're a subsidiary of a larger company, the parent company's figures may affect your eligibility.

3. Submit your target SMEs submit through the SBTi validation portal. You'll select your target type, enter your emissions data, and pay the validation fee. For SMEs, the fee is a one-time cost.

4. Get validated and published Once approved, your target is published on the SBTi's public database. You'll receive a communications welcome pack and permission to use the SBTi logo.

For most small companies, this process takes 6-12 weeks, depending on how quickly emissions data can be gathered.

That's the part most companies focus on. It's also the part that matters least long-term.

What you're actually committing to after the target is set

This is where companies get surprised.

Annual emissions reporting. Once your target is approved, you're expected to publicly report your Scope 1 and 2 emissions every year and show progress against your target. This means completing an updated carbon footprint annually, not just once at the start.

A reduction plan that actually works. A target without a plan is just a number. After setting the target, you need to identify which of your operations, suppliers, or business activities are driving the most emissions and what you're going to do to reduce them year over year. For most companies, this is where a more structured ESG roadmap becomes necessary. It often requires internal process changes, supplier conversations, and potentially capital investment in things like renewable energy or travel reduction.

A five-year review cycle. The SBTi requires companies to review and if necessary update their targets every five years. If the latest criteria have changed since you first submitted, your target may need to be revalidated against the new standard. Companies that set targets when the well-below 2°C pathway was accepted are now being asked to align with 1.5°C as they come up for review. It is also worth noting that the SBTi is currently updating its Corporate Net-Zero Standard. The next version is expected to introduce a more formal renewal cycle, so companies setting targets now should plan for requirements to evolve over time.

Staying current as standards evolve. The SBTi updates its criteria regularly. What was acceptable when you set your target may not meet the current standard when it's time to renew. This isn't a reason not to set a target, but it is a reason to plan for ongoing maintenance rather than treating it as a one-time project.

Is it worth it for a small private company?

For most companies getting requests from customers or investors, yes. The SME pathway is genuinely accessible. The target is credible. And the stakeholders asking about science-based targets are sophisticated enough to know the difference between a validated SBTi target and a self-declared pledge.

The honest answer is that it's a real commitment, not a marketing exercise. If your company isn't ready to do annual emissions reporting, build a reduction plan, and sustain that work over time, a science-based target will either not get completed or will lapse. That's worse than not having one.

If you're not sure whether you're ready, that's worth figuring out before you start.

If you're being asked about science-based targets, you're likely already on the clock with customers or investors. The question isn't just whether to set one — it's whether you're ready to follow through.

If you want to talk through what this would look like for your company, get in touch.

Reach out

Don’t miss our other blogs

Featured