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SBTi for SMEs: Climate Targets Without the Circus

"Does your company have science-based targets?" If you sell to large organisations, you've seen that line in a tender or onboarding form. Most small companies skip it. A growing number answer it with a validated number, and the gap between the two groups is visible to buyers.

The Science Based Targets initiative (SBTi) is the body that validates corporate climate targets against what the science says is needed to stay within 1.5°C. And it has a dedicated SME route that a small business can genuinely complete. Here's what it takes.

Who the SME route is for

The simplified SME pathway is aimed at smaller, non-subsidiary companies — the current definition is under 500 employees, and it excludes certain sectors with land-intensive value chains, which use the FLAG framework instead. If you're a 20-person manufacturer, you qualify.

The route asks for less than the full corporate process: no full scenario analysis, no target-setting methodology gymnastics. You commit to:

  • a near-term Scope 1 and 2 target, usually around a 4.2% linear annual reduction from a base year, aligned with 1.5°C,
  • measuring and reducing Scope 3 emissions,
  • reporting progress publicly every year.

There's a one-off validation fee — $1,000 the last time we checked, and you should check, because the SBTi has changed its process and pricing more than once. The commitment step is free; validation costs money.

The actual work is a weekend of spreadsheets

For most small manufacturers, Scope 1 is fuel and refrigerants. Scope 2 is electricity. That's it. Gas bills, fuel cards, electricity invoices, maybe an F-gas log. A founder who can do a VAT return can produce the base-year inventory in a weekend.

Scope 3 is the awkward part. You can't control your suppliers' emissions, and the SME route doesn't ask you to. It asks you to measure them (starting with the big categories — purchased goods, and use of sold products for energy-using goods) and to commit to reducing them over time through supplier engagement and design choices. Your customers' Scope 3 is literally your Scope 1 and 2, so every company in a chain ends up working on the same numbers anyway. We covered the corporate reporting mechanics in our CSRD guide.

What you get for the effort

A validated target is a number you can print in a tender without flinching. It answers the SBTi question in RFPs and satisfies the target line in CDP and EcoVadis evidence, and it gives retail buyers what their own procurement policies ask them to check. It's also one of the cheapest credibility signals available: a grand and a weekend versus thousands of euros of consulting.

Two cautions. First, the SBTi has been updating its standards, including the SME pathway, so read the current requirements before you apply — the process has changed faster than the climate has. Second, "committed" is not "validated." A lot of companies announce that they've "committed to SBTi targets" and never finish. Buyers increasingly check the validated list. Finish it.

Then publish the progress

Targets are only credible if progress is visible. The SBTi wants annual public reporting, and your buyers want to see the trend line without asking you for it. A live, dated page with your base year, your target, and this year's numbers — updated once a year — is the whole deliverable.

That's the pattern Sustalium builds for: the target lives at a permanent company-level URL, your customers see the current numbers, and the annual progress update is one edit at €10 per document instead of an email thread. Climate targets don't need a circus. They need a base year, a straight line, and a public page that tells the truth.

How Sustalium Helps with Climate Targets

  • A permanent URL for the target — base year, target line and progress on one public company-level page.
  • One annual edit — update the year's numbers once and every customer sees the current version.
  • The evidence trail — the same page feeds CDP answers, EcoVadis evidence and RFP target questions.

A Validated Target Deserves a Public Page

Publish your base year, target and progress where buyers can check them without emailing you. Start structuring your data free and publish the verified asset when you are ready.

Start Publishing Your Target →

Frequently Asked Questions

Who qualifies for the SBTi SME route?

Smaller, non-subsidiary companies — currently defined as under 500 employees. Companies in land-intensive sectors use the FLAG framework instead.

What does validation cost?

A one-off fee — $1,000 the last time we checked — plus your own data-collection time. The commitment step is free; check the current terms before applying.

Do I need a consultant?

Usually not. Scope 1 and 2 for most small firms come from fuel and electricity bills, and the SME route doesn't require the full corporate process.

Last updated: September 13, 2026

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