The Science-Based Targets initiative (SBTi) is currently the leading and most recognized climate target-setting protocol for the fashion industry. Increasingly, companies are using the SBTi as their north star for carbon reduction goals.
For many apparel and footwear brands, committing to SBTi isn’t just a choice – it’s an expectation. Investors increasingly demand 1.5°C-aligned targets, suppliers are asked by global brands to validate their commitments, and industry groups such as Cascale and the European Outdoor Group have made SBTi a requirement for membership.
But the momentum isn’t only driven by compliance. Many companies in our industry are setting targets because climate responsibility is part of their DNA, and SBTi provides a tangible, science-based framework to transform ambition into data-backed decarbonization pathways.
Yet while the motivation is clear, the path is rarely simple. Every fashion brand struggles with the same core questions – which target type should we choose, when to re-baseline, what is in the SBTi submission portal, etc.
In this article, we’ll unpack what textile brands need to know before, during, and after committing to SBTi. Are you new to SBTi terminology? Find core terms in the SBTi glossary here.
Let’s dive in!
The Science Based Targets initiative itself is an independent, non-profit partnership between CDP, the UN Global Compact, WRI, and WWF. Its framework has become the global standard for validating that company climate targets are in line with the 1.5°C pathway of the Paris Agreement.
Once a clothing brand decides to align with the Science Based Targets initiative, the first step is to register through the SBTi Validation Portal. The registration collects information such as company size, structure, and business activities to determine the appropriate validation route.
The target-setting process consists of four main stages:
Commit to setting targets: Companies can submit a commitment letter through the SBTi portal, signaling their intention to set a science-based target. After committing, they have up to 24 months (max) to develop and submit their targets for validation.
Set a baseline and develop targets: Using the SBTi Target Setting Tool, companies define their baseline year, target year, and reduction pathway.
Submit targets for validation: The developed targets are submitted through the SBTi Services Portal. The review process usually takes between 30 and 60 working days, resulting in a validation report and decision letter.
Communicate and disclose targets: Once validated, the company must publicly disclose its approved targets on the SBTi website within six months.
Carbon accounting is the process of tracking and measuring the greenhouse gases (GHGs) emitted by a fashion company. It is the first step in setting SBTi targets. Without an accurate baseline, it is impossible to define meaningful reduction goals or implement effective mitigation strategies.
SBTi Requirements for Apparel and Footwear
SBTi requires apparel and footwear companies to build a GHG inventory that is compliant with the GHG Protocol Corporate Standard. This inventory must include:
SBTi Target boundary
SBTi requires that targets cover Scopes 1, 2, and 3 within a fashion brand’s chosen boundary. The boundary defines which operations and emissions are included in the inventory. For Scopes 1 and 2, at least 95% of emissions must be included. For Scope 3, targets must cover at least 67% of total Scope 3 emissions.
Choosing a platform for Carbon Accounting? Read this guide about Carbon Accounting for apparel and footwear brands.
A baseline year is the starting point against which a fashion company measures its greenhouse gas (GHG) reductions. It represents the company’s emissions in a chosen reference year. It could either be a fiscal or calendar year. By comparing future emissions to this baseline, companies can track whether they are reducing their footprint in line with SBTi requirements.
It is recommended to choose a baseline year as recent as possible (e.g., 2023 or 2024) to reflect accurate data and current operations. It is recommended that the baseline year be no more than two years before the target submission date (cannot be earlier than 2015). Using older years (such as 2019) often relies on more generic emission factors, which can underestimate the footprint, weaken the credibility of the target, and lead to target rejection.
Another recommendation is to select the same base year for all the targets that you will set on scopes 1, 2, and 3 to ensure consistency in reporting.
Future emission pathways are profile scenarios of how much greenhouse gas the world will emit over time and at what pace the reduction will happen.
If global CO2 emissions keep rising, we are heading toward very high warming scenarios of 3–5°C by the end of the century. To limit warming to well below 2°C, emissions need to decline sharply, reaching net zero around 2070. To stay within the 1.5°C limit, the most ambitious goal and aligned with the Paris Agreement, emissions must fall even faster — reaching net zero by 2050.
These emission profiles will directly determine the global temperature rise. For example, at 1.5°C, around 14% of species face a high risk of extinction – but at 3°C, that risk doubles to nearly 30%.
Every fraction of a degree matters. Limiting warming closer to 1.5°C drastically reduces human suffering and ecological damage. SBTi targets are designed to align companies with these global pathways.
In terms of timeline, companies can set two types of science-based targets:
Near-term targets (required): Cover the next 5–10 years to ensure immediate action.
Long-term net-zero targets (optional but highly recommended): Must be reached by 2050 at the latest.
NOTE: Under the SBTi framework, every textile brand has to set a near-term SBT. Long-term net-zero is optional, but highly recommended, and is becoming an industry standard.
For most brands and retailers, Scope 1 and 2 emissions are relatively small compared to Scope 3. For material suppliers and manufacturers, they can be much larger. Still, all companies must set targets for Scopes 1 and 2.
Here are the target requirements for Scope 1 and 2:
Scope 1 and 2 targets are set differently:
This is the preferred and most common approach. Under this method, a company must reduce its total emissions each year by a fixed percentage – known as the Linear Annual Reduction (LAR) – regardless of business growth or decline. If your company’s overall footprint increases (for example, due to higher sales or production volumes), you will need to make larger annual reductions to stay on track with the science-based rate.
Target requirements:
Instead of absolute reductions, a company can commit to sourcing renewable electricity in line with 1.5°C. The renewable electricity target option is only for Scope 2 and can be combined with absolute contraction for Scope 1.
The target requires companies to source at least 80% renewable electricity by 2025 and 100% by 2030.
According to the SBTi framework, if Scope 3 emissions account for 40% or more of a company’s total footprint (Scopes 1+2+3), then a Scope 3 target is required. For fashion brands, Scope 3 often represents 90–95% of emissions, mainly from purchased goods and services.
Here are the target requirements:
Scope 3 targets can be set using one or a combination of the following methods: absolute contraction, physical intensity, economic intensity, or supplier engagement.
No matter which target-setting method you choose for Scope 3 (absolute contraction, intensity, or supplier engagement), the target must cover GHG categories (such as purchased goods, transport, product use, etc.) that represent at least 67% of total Scope 3 emissions. So, hypothetically, if your total Scope 3 footprint is 1,000 tCO₂e, your target must include Scope 3 GHG categories that cover at least 670 tCO₂e (67%). If you then commit to cut those emissions by 50%, your reduction target is 335 tCO₂e.
Apparel and footwear brands can combine different Scope 3 target-setting methods, as long as each method applies to a clearly defined category and together they cover at least 67 % of total Scope 3 emissions. For example, a brand might use absolute contraction for purchased goods and services and a supplier engagement target for upstream transportation or finished goods suppliers.
Absolute contraction - Reduce total emissions by a fixed percentage each year (regardless of business growth).
Physical intensity - reduce emissions per physical unit (e.g., per T-shirt, per pair of shoes).
Economic intensity - reduce emissions per unit of value added (like per € of gross profit).
When you submit an intensity target (physical or economic), you must also give SBTi your expected production/output growth for the target period. This ensures that the intensity reduction will also lead to an absolute decrease in total emissions, not just lower emissions per unit.
Supplier engagement - Decathlon and Zalando are among the brands that want to ensure a set % of suppliers (by spend or emissions) adopt their own SBTs within 5 years. You can set this target with your top suppliers in terms of production volumes, and combine it with an absolute contraction or intensity target, to reach a minimum coverage of 67% of scope 3 emissions.
In the Apparel & Footwear Sector Guidance, SBTi recognizes secondhand, repair, and rental models as examples of circular business models. It notes that these models must still be included in Scope 3 accounting and intensity targets, since they are part of the company’s product or service portfolio.
For example:
The use of offsets is not counted as an emission reduction toward the progress of companies’ science-based targets. The SBTi requires that companies set targets based on emission reductions through direct action within their own operations or their value chains. Offsets are considered to be an option only for companies wanting to finance additional emission reductions beyond their science-based targets.
It is generally recommended that only the parent company submit targets. However, subsidiaries may set their own targets if they choose to. When both a parent company and its subsidiaries have targets, they must clearly disclose whether the parent company’s target includes or excludes the subsidiary’s emissions to avoid double-counting.
Example: Both Arc'teryx and its parent company, Amer Sports Corporation, have validated SBTi targets.
SBTi Services’ online Validation Portal is where companies register, commit, and submit their science-based targets for review and approval. Brands submit targets through the SBTi Target Validation Portal, providing:
After submission, SBTi’s Technical Team reviews the data for consistency with the official criteria.
Regular SBTi target submission requires companies to first sign a Commitment Letter and then submit their carbon accounting results from the baseline year and science-based targets within 16 months. The submission must include Scope 1, 2 & 3 emissions and targets.
There is a streamlined track for SMEs to set their targets. Only Scope 1 & 2 emissions and targets need to be submitted for near-term goals. However, SMEs must commit to measuring and reduce their scope 3 emissions by publicly disclosing the target (e.g., via CPD).
Regular SBTi submission costs significantly more than SME submission: $14,500 vs. $2,000. Companies are eligible to use the SME route if they:
And three or more are true:
Here are some examples:
Snocks GmbH (SME): commits to reducing scope 1 and scope 2 GHG emissions 42% by 2030 from a 2022 base year, and to measure and reduce its scope 3 emissions. Snocks GmbH commits to reaching net-zero by 2045. As part of this, Snocks GmbH commits to reducing scope 1+2+3 emissions 90% by 2045 from a 2022 base year.
A.P.C. (Atelier de Production et de Création): commits to reducing scope 1 and scope 2 GHG emissions by 42% by 2030 from a 2022 base year, and to measure and reduce its scope 3 emissions.
Everlane: commits to reducing scope 1 and scope 2 GHG emissions by 46% by 2030 from a 2019 base year, and to measure and reduce its scope 3 emissions. Everlane commits to reaching net-zero by 2050. As part of this, Everlane commits to reducing scope 1+2+3 emissions 90% by 2050 from a 2019 base year.
Yes. Within 6 months of submission, you must publicly disclose the target you set. After that, every year you need to publish both your GHG footprint and your progress toward the targets. If targets are recalculated or updated, those changes should also be explained transparently.
Where to disclose: There are no specific requirements regarding where the inventory should be disclosed, as long as it is public. Recommendations include annual reports, sustainability reports, the company’s website, and/or CDP’s annual questionnaire.
Example from Nike’s FY24 Impact Report
Once targets are in place, maintaining their relevance over time is essential. According to SBTi guidelines, re-baselining becomes necessary when significant organizational or operational changes occur that could affect the validity and consistency of existing targets. Companies should re-baseline when:
According to the SBTi guidelines, companies should re-baseline when:
The SBTi recommends recalculating targets if there is a 5% or greater change in an organization's total base year emissions or in the emissions covered within a target boundary.
Curious to see how leading brands are communicating the change of baseline emissions in their impact reports? Read our article on rebaselining for apparel and footwear here.
All SBTi targets must be reviewed at least every 5 years to stay aligned with the latest climate science and SBTi criteria.
Additionally, a company must recalculate its target if one of the following triggers arises:
If recalculation is needed (e.g., due to structural changes or new data), targets might also be revalidated and resubmitted under the most recent SBTi criteria, if the ambition level no longer matches minimum requirements.
Once a fashion company publicly commits to set science-based targets – by joining the SBTi through the Commitment Letter – the commitment is considered public and permanent.
However, there are a few specific situations where SBTi will remove or update a company’s status on its website:
Otherwise, companies cannot voluntarily withdraw or delete their SBTi commitment once published.
You can find the official SBTi guidance for the Apparel & Footwear industry here. Version 2.0 is in public consultation and will be used only to set targets from 2027 and onwards. Target setting in 2025 and 2026 will be using the current version 1.3. Targets with version 1.3 set before 2027 will remain valid until their target year. The main changes are summarized in the table below:
SBTi’s Forest, Land and Agriculture (FLAG) guidance is a new framework that requires companies to measure and set precise reduction targets for their FLAG-related emissions in addition to their energy/industry SBTs.
In apparel and footwear companies, FLAG emissions originate largely from Scope 3, specifically Purchased Goods & Services, stemming from the production of natural fibers like cotton, leather, and wool. If your business has already set SBTs, then you will be required to set a FLAG SBT if 20% or more of your Scope 1, 2, and 3 emissions are derived from FLAG sources. In other words, a large percentage of apparel and footwear brands.
Learn all about SBTi FLAG for apparel and footwear in our blog here.
There are no direct penalties from the SBTi if a company falls short of its reduction pathway. However, missing targets carries significant risks: companies can be flagged as “off track,” which may damage credibility with investors, customers, and NGOs, and result in lower ESG ratings.
Targets must also be reviewed every five years, so persistent gaps may require resubmitting updated targets under the latest SBTi criteria. In practice, failing to stay on track undermines trust and momentum – making it harder to secure supplier engagement (“Why would we invest our time to find emissions data if you’re not sticking to your target”), investment, and internal buy-in for future climate action.
At Carbonfact, we see firsthand how apparel and footwear companies approach the Science Based Targets initiative (SBTi). Across our customer base, more than 30% are already on their SBTi journey – whether they’re setting baselines, defining reduction pathways, or submitting targets for validation.
Scope 1 & 2 reduction strategies can be relatively straightforward, such as switching to 100% renewable electricity. But 90–95% of emissions for apparel and footwear brands sit in Scope 3 – which is complex, requiring both granular data and expert guidance. This is where Carbonfact supports companies from two sides:
Absolute contraction – One of the approved methods for setting science-based targets. It requires reducing total greenhouse gas emissions by a fixed annual rate, regardless of business growth. This method is required for Scope 1 and 2 targets and can also be used for Scope 3.
Baseline emissions – A baseline year is the starting point against which a company measures its greenhouse gas (GHG) reductions. It represents the company’s emissions in a chosen reference year. It should represent typical business activity and use the most recent, complete, and reliable data.
FLAG target – A target for Forestry, Land Use and Agriculture emissions, required for materials like cotton, wool, and leather.
GHG emissions – greenhouse gases (such as carbon dioxide, methane, and nitrous oxide) released into the atmosphere from activities like manufacturing, energy use, and transportation. These gases trap heat and are measured in tonnes of CO₂ equivalent (tCO₂e) to show their combined impact on global warming.
Intensity target – One of the approved methods for setting Scope 3 science-based targets. Cutting emissions per unit of product (physical) or per € of value added (economic). Even though performance is measured per unit, the overall result must still show a real decrease in total (absolute) emissions over time.
Long-term net-zero target – A deep-reduction goal (~90% by 2050 or earlier) required to reach corporate net zero.
Near-term target – A 5-10 year target (2030–2035) that drives immediate emission reductions.
Offsets – Carbon credits used to compensate for emissions outside a company’s reduction boundary. Offsets do not count toward science-based targets – they are only used after achieving deep reductions to neutralize residual emissions.
Re-baselining – The process of updating the baseline year emissions data and targets when major structural or data changes occur, ensuring consistency with the latest SBTi criteria.
Residual emissions – The small share of unavoidable emissions left after all feasible reductions, which must be neutralized through permanent removals.
Scope 1 emissions – Direct emissions from owned or controlled sources such as factories or vehicles.
Scope 2 emissions – Indirect emissions from purchased electricity, heating, or cooling.
Scope 3 emissions – All other indirect emissions in the value chain – from raw materials to transport, use, and end-of-life.
Supplier engagement target – A Scope 3 target setting method requiring suppliers covering at least 67% of emissions (by spend or emissions) to set their own SBTs within 5 years.
Target boundary – Defines which operations, subsidiaries, and emission sources are included within the company’s science-based target. Must align with the company’s GHG inventory boundary.