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Net Zero• 8 min read

What is Net Zero

A Simple, Authoritative Guide to the Science Based Targets initiative (SBTi)

Executive Synthesis

The Science Based Targets initiative (SBTi) serves as the gold standard independent arbiter of corporate climate commitments. By aligning corporate emissions-reduction targets with the 1.5°C threshold of the Paris Agreement, SBTi ensures that net-zero pledges represent auditable mathematical pathways rather than aspirational greenwashing.

SBTi, Simply Explained
The Math of Net-Zero: 90% Reduction First!
Worked Example: Logistics Enterprise Decarbonization
How to Implement, Track & Report Your Targets
Executive Synthesis

Key Strategic Takeaways

SBTi provides independent, scientifically validated confirmation that corporate emissions targets align with the 1.5°C Paris Agreement limit.

Net-zero under SBTi mandates a 90% to 95% absolute reduction across Scopes 1, 2, and 3 before any carbon removals can be applied.

Carbon offsets cannot be counted toward meeting near-term SBTi reduction milestones.

Companies that fail to progress against submitted targets risk public removal and reputational downgrades.

EnviroWealth Practical Execution

How EnviroWealth Designs Your SBTi-Aligned Net-Zero Roadmap

We help corporate leaders build, validate, and execute science-based decarbonization targets.

Comprehensive GHG Protocol baseline inventory across Scopes 1, 2, and 3
SBTi target modeling using SDA (Sectoral Decarbonization Approach) and ACA methods
Preparation and submission of official SBTi validation application documentation
Marginal Abatement Cost Curve (MACC) engineering to fund internal decarbonization projects
Frequently Asked Questions

Can an SME or mid-sized enterprise commit to SBTi?

Yes! SBTi provides a streamlined SME validation route for companies with fewer than 250 employees. This route features reduced application fees, exempts companies from full Scope 3 target modeling, and allows rapid 4-week validation.

What happens if a company misses its SBTi near-term milestone?

SBTi publicly publishes target compliance status on its website. Companies that fail to report or fall severely behind face reclassification as 'Commitment Lapsed' or 'Target Removed', triggering severe ESG rating downgrades from institutional investors.