What is ‘Net Zero’ and ‘SBTi’?

To avoid the severe impacts of climate change, we must limit global temperature rise to 1.5°C above pre-industrial levels. We’re already around 1.1°C above where we were in the late 1800s, and emissions—and the resulting climate-related disasters—continue to climb.

To achieve the Paris Agreement goals established by world leaders at COP21 in 2015, we need to reduce emissions by 43% by 2030 and reach net zero by 2050.

This target requires organizations worldwide to transform their business practices. That’s why you’re seeing companies and governments set net zero goals for 2030, 2050, and beyond. Without significant action, we face rising costs (like soaring insurance premiums), enormous capital requirements to rebuild after climate disasters, and supply chain disruptions.

Net zero is the balance between the greenhouse gases we emit and those we remove from the atmosphere. This requires massive shifts away from fossil fuels, toward renewable energy sources, and sourcing goods and services from organizations committed to these changes.

Many companies have announced 2030 and 2050 net zero targets. But are these targets credible? A goal without a plan is meaningless. The Science Based Targets Initiative (SBTi) helps ensure a company’s net zero target is scientifically grounded and achievable. Real change requires structural adjustments, and everyone has a role to play.

Setting a science-based net zero target means committing to reduce emissions to net zero by a specific deadline, in line with the Paris Agreement goals. It starts with understanding emissions, setting a base year, and creating a baseline—meaning accurate carbon accounting is essential.

Next, the company defines a pathway to reduce emissions to net zero in accordance with the latest climate science. This involves cutting emissions and neutralizing remaining emissions through carbon removal. (Avoidance credits, for example, don’t count toward genuine reduction.)

Once defined, the target is submitted to the Science Based Targets Initiative (SBTi) for validation. After approval, the company must report on its progress regularly and adapt its strategies as needed. SBTi provides a step-by-step guide to help companies set and achieve their targets.

As of January 2024, over 140 countries, including major emitters like China, the USA, and the EU, have set net zero targets, covering roughly 88% of global emissions (source). More than 10,000 businesses, including around 7,000 SMEs, have committed to taking action, aiming to halve global emissions by 2030 (source).

It’s up to you whether this is public or not but increasingly its a standard expectation from stakeholders that you do —and it’s important to make sure it’s credible. Warning signs that it’s not include:

You can play a role too. Start with credible carbon accounting. Establish a baseline across Scope 1, 2, and 3. Communicate with your suppliers, letting them know you’re taking this seriously and offering support if needed. Sumday simplifies this process with training, software, and support that you can extend to your suppliers, whether you have 10 or 10,000.

Whether you’re a big corporation or a small business, we’re all in this together.

If you’re a small business feeling overwhelmed by the journey to net zero, know that even small actions can make a difference. Yes, you might need to travel for business, and while your individual choices matter, it’s also about pushing industries—like airlines—to adopt cleaner technology. Achieving net zero is a collective effort that needs everyone on board.

Here’s a practical roadmap:

DIY calculators and industry averages have served as rough estimates for offset purchasing in the past, but robust, auditable carbon accounting with supply chain engagement is increasingly essential for tracking real progress toward net zero—and it’s about time.