Near-Term Target selection
Please note that in order to commit to a net-zero target, your company must also set a 1.5°C aligned near-term target, as reflected by the options available for target setting below.
Based on SBTi Criteria 5.0, in effect since July 15th 2022, the following predefined target options have been modified to reflect the level of decarbonization required to keep global temperature increase to 1.5°C. Criterion 16 focuses on the choice of base years after or equal to 2020, and specifies that absolute emission reductions must meet a minimum contraction rate based on a reference base year of 2020, as indicated in the formula below:
Minimum absolute contraction target value = 4.2% x (Target year - base year).
For base years between 2018 and 2019 (inclusive), the absolute emissions reduction meets the minimum reduction value over the target period as set out below:
Minimum value for absolute contraction target = 4.2% x (Target year - 2020)
Consequently, to ensure alignment with 1.5C ambition, SMEs must meet, at a minimum, between base years after or equal to 2020 and 2030, a level of emissions reductions equivalent to 42%.
Based on this, the updated reduction rates are as follows: