Is SBTi mandatory? · read against the UK instruments
Is SBTi mandatory? No, but UK rules ask about targets
SBTi is not mandatory in the UK, and the Science Based Targets initiative mandatory question has a one-word answer: no statute or rule requires a company to have SBTi-validated targets.
Asking “is SBTi mandatory” is still worth it, because UK SRS S2, the FCA’s listing rules and PPN 006 all ask about targets, and large customers often ask suppliers for SBTi targets directly.
The answer
Is SBTi mandatory? The short answer
No: the SBTi is a charity registered in England and Wales that writes voluntary criteria, not a regulator, and no UK law requires its validation.
The commonest misreading is that UK SRS requires SBTi validation; UK SRS S2 ¶34(a) asks only whether a target was validated by a third party.
Where SBTi does become a requirement is by choice: a company that commits or submits takes on the SBTi’s own rules for publishing, reporting and reviewing its targets.
Rule by rule
SBTi mandatory under UK rules? What each one actually asks
| UK rule | Who it reaches | What it asks about targets | Requires SBTi? |
|---|---|---|---|
| UK SRS S2 ¶¶33–36 | Any entity applying UK SRS | Each climate target, its objective, whether a third party validated it, gross or net, and planned use of carbon credits | No |
| FCA PS26/19, UKLR 6.6.6R(7A) | Five listing categories, periods from 1 January 2027 | Disclose under UK SRS S2, or say what is missing, why and what you plan | No: comply or explain |
| PPN 006 | Bidders for in-scope central government contracts above £5m a year | A Carbon Reduction Plan committing to net zero by 2050 | No |
The depth on each rule: UK SRS S2, UK SRS transition plans and PPN 006.
Transition plans
Science Based Targets initiative mandatory for transition plans? No
UK SRS S2 asks about “any climate-related transition plan the entity has”; it does not require a company to have one, or to base it on SBTi targets.
For listed companies, PS26/19 adds a statement on whether a transition plan is published, again on a comply-or-explain basis (UKLR 6.6.6R(8)(e)).
The reverse dependency is the SBTi’s: under the Corporate Net-Zero Standard V2.0, from 2027, a company that sets SBTi targets “shall develop and maintain a transition plan” (C2).
More on plans: climate transition plans.
Customers
Why the Science Based Targets initiative feels mandatory for suppliers
- 1
The customer sets a Scope 3 target
Near-term Scope 3 targets are required where relevant Scope 3 is 40% or more of total emissions (Near-Term Criteria C4).
- 2
It chooses a supplier engagement target
A target for a share of suppliers, by spend or emissions, to have science-based targets, fulfilled within five years (C19).
- 3
It asks its suppliers
Its procurement team asks suppliers for SBTi targets and checks them on the SBTi Target Dashboard.
- 4
The supplier decides
An SME supplier may use the SBTi SME route; a larger one the corporate route. Neither is a legal duty.
Worked supplier-engagement wording is on the SBTi target examples page.
If you volunteer
Science Based Targets initiative mandatory rules, once you volunteer
Once a company commits or submits, the SBTi’s own criteria bind it as a condition of keeping its status, not as law:
publish approved targets within six months (C28), report emissions and progress annually (C25), review every five years (C26), and never count carbon credits as reductions (C11).
A commitment not followed by targets within 24 months shows as “Commitment Removed” on the dashboard (Statuses V2.1).
An independent reference. We do not validate, certify or partner with the SBTi, and this page is not legal advice.
What volunteering costs is on the SBTi cost page; the SBTi hub links every guide.
Frequently asked
Is SBTi mandatory? Your questions answered
Is SBTi mandatory?
No. The Science Based Targets initiative is a voluntary standard-setter, and no UK statute or rule requires a company to have SBTi-validated targets.
Is SBTi mandatory for UK SRS reporting?
No. UK SRS S2 asks a reporting company to disclose its climate targets and, under ¶34(a), whether a third party validated them; it does not require a target to be validated, by the SBTi or anyone else.
Is SBTi mandatory for listed companies under the FCA rules?
No. FCA PS26/19 applies UK SRS to five listing categories on a comply-or-explain basis for periods beginning on or after 1 January 2027.
A company discloses its targets or explains why it has not; nothing requires an SBTi target.
Is SBTi mandatory for PPN 006?
No. PPN 006 asks bidders for in-scope central government contracts above £5 million a year for a Carbon Reduction Plan committing to net zero by 2050. It does not require an SBTi target.
Why do customers ask suppliers for SBTi targets?
Because their own targets can depend on it.
Under the SBTi criteria a company can set a supplier engagement target, a share of suppliers by spend or emissions with science-based targets, so a large customer may ask its suppliers to set them.
Once validated, are SBTi targets binding?
Not in law, but the SBTi’s own criteria then apply: publish within six months, report emissions and progress annually, review every five years, and never count carbon credits as reductions.
A commitment that is not met within 24 months is removed from the dashboard.
Is SBTi reporting the same as TCFD reporting?
No. TCFD-style disclosure, now UK SRS S2 for listed companies, is about what a company reports; the SBTi is about the targets it sets.
A report can describe SBTi targets, but neither requires the other.
Sources
Primary sources
Every figure, date and status on this page traces to the instrument’s owner.
Secondary commentary is never the source for a number.
- Department for Business and TradeUK SRS S2 Climate-related Disclosures
¶¶33–37: targets; ¶34(a) third-party validation; ¶14 transition plans.
- Department for Business and TradeUK SRS guidance
UK SRS is voluntary unless a rule applies it.
- Financial Conduct AuthorityPS26/19
Comply or explain for five listing categories, periods from 1 January 2027.
- Financial Conduct AuthorityPS26/19 (PDF), Appendix 1
UKLR 6.6.6R(7A) and (8)(e).
- Cabinet OfficePPN 006: Carbon Reduction Plans
A condition of participation above £5m a year per contract.
- Cabinet OfficePPN 006 Technical Standard
Net zero by 2050; Scope 1, 2 and five Scope 3 categories.
- Science Based Targets initiativeCorporate Near-Term Criteria V5.3.1
C11, C25, C26, C28: what a validated company signs up to.
- Science Based Targets initiativeCommitment and Target Statuses V2.1
The 24-month commitment window.
- Science Based Targets initiativeTarget Dashboard
Where customers check a supplier’s status.
- Science Based Targets initiativeAbout us
A registered charity, not a regulator.
- Science Based Targets initiativeCorporate Net-Zero Standard V2.0 Criteria
C2: a transition plan for every company that sets targets under V2.0.