Climate risk glossary
Science Based Targets Initiative (SBTi)
The Science Based Targets initiative (SBTi) is a global standard-setting body that helps companies and financial institutions set greenhouse gas (GHG) emissions reduction targets in line with climate science and the Paris Agreement. Targets validated by SBTi ensure that decarbonisation plans align with pathways to limit global warming to 1.5°C or well below 2°C. In climate finance, SBTi is a key benchmark for assessing the credibility of corporate climate commitments, portfolio alignment, and transition risk exposure. For investors, SBTi provides a trusted framework to distinguish between robust net-zero strategies and potential greenwashing.