SBTi target
What a voluntary target must cover: the 40% trigger and 67% today, the 5% category test from 2027.
Near-Term Criteria C4–C6SBTi Scope 3 · criterion by criterion
SBTi Scope 3: the target rules now, and under V2.0
SBTi Scope 3 rules depend on the version: today a company sets Scope 3 targets when relevant Scope 3 is 40% or more of its total emissions, covering at least 67% of it; from 2027, V2.0 asks Category A companies to cover every category of 5% or more.
This page sets the Science Based Targets initiative Scope 3 criteria side by side, with a worked example and the methods each version allows.
Today
SBTi Scope 3 rules today: V5.3.1 and V1.3.1
Criterion C4 sets the trigger: “If a company’s relevant scope 3 emissions are 40% or more of total scope 1, 2, and 3 emissions, they shall be included in near-term science-based targets.”
Fossil fuel sellers have no threshold: they must set separate use-of-sold-products targets whatever the share.
Near-term targets must cover at least 67% of total reported and excluded Scope 3 emissions (C6), with no more than 5% excluded from the Scope 3 inventory (C5).
Ambition is at least well-below 2°C for Scope 3 (C18), and a supplier or customer engagement target must be met within five years (C19).
Long-term targets go further: “The boundary of long-term science-based targets shall cover at least 90% of total scope 3 emissions” (Net-Zero Criteria V1.3.1, C7).
From 2027
Science Based Targets initiative Scope 3 rules under V2.0
V2.0 replaces percentages with a significance test, C14.1: “Near-term targets shall cover at least all scope 3 categories that individually represent 5% or more of the company’s scope 3 emissions in categories 1–14 based on the physical GHG inventory.”
C14.2 then lets a company exclude named emissions even inside a significant category: second-hand goods in categories 1 and 2, category 3 where it falls with Scope 1 and 2 energy cuts, all of category 7, and conditional parts of categories 8, 9, 10 and 14.
Each exclusion is reported, in tonnes and as a share of categories 1–14, with the actions planned to cut it (C14.3).
The target is required for Category A companies and optional for Category B, unless a Category B company also sets a net-zero target (C17.1); the categories are on the SBTi SME page.
The inventory itself allows no exclusions (“No exclusions are permitted. CNZS V2.0, C5”), but only Scope 1 and 2 must be reported publicly every year (C36.4); annual Scope 3 reporting is recommended (R36.1).
Not a ban on intensity targets
V2.0 removes the Scope 3 economic and physical intensity methods based on a 7% annual reduction. Sector-pathway intensity targets remain for some categories, so “V2 bans intensity targets” is wrong.
Side by side
SBTi Scope 3, V1.3.1 against V2.0
| Rule | Today: Near-Term V5.3.1 and CNZS V1.3.1 | V2.0, validations from 1 February 2027 |
|---|---|---|
| When a Scope 3 target is needed | Relevant Scope 3 is 40% or more of total (C4) | Category A always; Category B optional unless it sets net zero (C14, C17.1) |
| Boundary | At least 67% of Scope 3, near term (C6); 90% long term (C7) | Every category of 5% or more of categories 1–14, less named exclusions (C14.1–C14.2) |
| Inventory exclusions | Up to 5% of Scope 3 (C5) | None (C5) |
| Methods | Absolute contraction, sector pathways, physical or economic intensity, supplier or customer engagement | Absolute reduction, supplier or customer alignment, or category-specific options; 7% intensity methods removed (C15) |
| Timeframe | 5 to 10 years from submission (C13) | Exactly five years (C9.2) |
| Annual public reporting | Scope 1, 2 and 3 | Scope 1 and 2 required; Scope 3 recommended (C36, R36.1) |
Worked example
SBTi Scope 3: a worked example
A fictional manufacturer, to show the arithmetic. Not a real company and not a recommended ambition.
| Step | The fictional company’s figures | What follows |
|---|---|---|
| Inventory | Scope 1: 2,000 t · Scope 2: 1,000 t · Scope 3: 12,000 t (total 15,000 t) | Scope 3 is 80% of the total |
| Today: the trigger (C4) | 12,000 ÷ 15,000 = 80% | 80% is above 40%: a Scope 3 target is needed |
| Today: coverage (C6) | 67% × 12,000 t = 8,040 t | The targets must cover at least 8,040 t of Scope 3 |
| V2.0: significant categories (C14.1) | Category 1 at 7,800 t (65%), category 4 at 1,560 t (13%), category 11 at 960 t (8%), the rest each under 5% | Categories 1, 4 and 11 must be in the target boundary |
UK reporting
Science Based Targets initiative Scope 3 and UK rules
Three different Scope 3 questions. Do not answer one with another.
Scope 3
Categories 1–15, GHG Protocol
Categories 1–15, GHG Protocol
UK SRS S2 disclosure
What a reporting company discloses; listed companies have a one-year Scope 3 relief under PS26/19.
FCA PS26/19PPN 006 plan
A Carbon Reduction Plan covers Scope 1, Scope 2 and five Scope 3 categories only.
PPN 006 Technical StandardThe inventory behind all three is on Scope 3 emissions and the disclosure on UK SRS Scope 3 reporting; the target rules in full are on the SBTi criteria page, and the SBTi hub links every guide.
Frequently asked
SBTi Scope 3, answered
When does the SBTi require a Scope 3 target?
Under the Near-Term Criteria V5.3.1, when relevant Scope 3 emissions are 40% or more of total Scope 1, 2 and 3 emissions (criterion C4).
Companies selling or distributing natural gas or other fossil fuels must set a Scope 3 use-of-sold-products target regardless of share.
How much of Scope 3 must an SBTi target cover?
Near-term targets must collectively cover at least 67% of total Scope 3 emissions (C6), and long-term targets at least 90% (Net-Zero Criteria V1.3.1, C7).
What changes for SBTi Scope 3 under V2.0?
From 2027, Category A companies must cover every Scope 3 category that is 5% or more of categories 1–14 (C14.1), with named optional exclusions such as all of category 7, employee commuting (C14.2).
Category B companies may choose whether to set Scope 3 targets, unless they set a net-zero target.
Does V2.0 ban Scope 3 intensity targets?
No. It removes the Scope 3 economic and physical intensity methods based on a 7% annual reduction, but sector-pathway intensity targets remain available for some categories.
Do SMEs need an SBTi Scope 3 target?
Not on the SME route: SMEs must measure and reduce Scope 3 but need not set a near-term Scope 3 target, and a voluntary one is not validated.
Can a supplier engagement target count as an SBTi Scope 3 target?
Yes, under the current criteria a supplier or customer engagement target can be used, and must be fulfilled within five years (C19).
V2.0 keeps a supplier and customer alignment option (C15.2).
Is the SBTi Scope 3 rule the same as UK SRS?
No. UK SRS S2 asks companies to disclose Scope 3 emissions, with a one-year relief under the FCA rules for listed companies; the SBTi decides what a voluntary target must cover.
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.
Checked against 12 sources fromScience Based Targets initiativeSBTi ServicesGHG ProtocolDepartment for Business and TradeCabinet OfficeFinancial Conduct Authority
- Science Based Targets initiativeCorporate Near-Term Criteria V5.3.1
C4 the 40% trigger; C5, C6 coverage; C9 inventory; C18 ambition; C19 engagement.
- Science Based Targets initiativeCorporate Net-Zero Standard Criteria V1.3.1
C7: long-term targets cover at least 90% of Scope 3.
- Science Based Targets initiativeCorporate Net-Zero Standard V2.0 Criteria
C5, C9.1, C14–C15, C17.1, C36.
- Science Based Targets initiativeCorporate Net-Zero Standard V2.0
§B.3: Category A and B.
- Science Based Targets initiativeCNZS V2.0 Main Changes Document
Rows 3.4: the significance approach; 7% intensity methods removed.
- SBTi ServicesGuide for Companies in the Transition to CNZS V2.0
Scope 3 under V1.3.1 against V2.0, side by side.
- SBTi ServicesFAQs for SMEs V6.2
Q2, Q46: no near-term Scope 3 target on the SME route.
- GHG ProtocolCorporate Value Chain (Scope 3) Standard
The 15 categories the SBTi criteria refer to.
- GHG ProtocolScope 3 Calculation Guidance
Methods behind the inventory.
- Department for Business and TradeUK SRS S2
Scope 3 disclosure and ¶36(b): which scopes a target covers.
- Cabinet OfficePPN 006 Technical Standard
Five Scope 3 categories only.
- Financial Conduct AuthorityPS26/19
A one-year Scope 3 relief for listed companies.