{"id":39223,"date":"2026-05-20T06:07:10","date_gmt":"2026-05-20T04:07:10","guid":{"rendered":"https:\/\/www.co2news.sk\/?p=39223"},"modified":"2026-05-20T06:17:57","modified_gmt":"2026-05-20T04:17:57","slug":"the-road-to-carbon-neutrality-a-comprehensive-guide-to-corporate-climate-action-according-to-sbti-standards","status":"publish","type":"post","link":"https:\/\/www.co2news.sk\/en\/2026\/05\/20\/the-road-to-carbon-neutrality-a-comprehensive-guide-to-corporate-climate-action-according-to-sbti-standards\/","title":{"rendered":"The Path to Carbon Neutrality: A Comprehensive Guide to Corporate Climate Action According to SBTi Standards"},"content":{"rendered":"<p style=\"text-align: left;\">The climate crisis represents one of the most pressing challenges of our time. Organization <strong>Science Based Targets initiative (SBTi)<\/strong> was created to enable companies and financial institutions around the world to play their part in the fight against global warming. SBTi <!--more-->develops standards, tools and guidance to help companies set greenhouse gas emission reduction targets that are consistent with the latest science. The ultimate goal is to limit global warming to 1.5\u00b0C above pre-industrial levels, with minimal or no temporary overshoot, as required by the Paris Agreement.<\/p>\n<p>The following article serves as a comprehensive information guide to the key mechanisms, categories, and strategies that SBTi applies in corporate transformation to a sustainable economy.<\/p>\n<p><strong>1. Emissions Inventory: The Foundation of Every Strategy<\/strong><\/p>\n<p>Before a company can set goals, it must understand and measure its current carbon footprint. Creating <strong>greenhouse gas inventory (GHG inventory)<\/strong> means thoroughly calculating emissions resulting from activities within the organizational boundaries of the company and its value chain.<\/p>\n<p>Emissions are divided into three Scopes based on the Greenhouse Gas Protocol standards:<\/p>\n<ul>\n<li><strong>Scope 1:<\/strong> Represents <strong>direct emissions<\/strong> from sources that the reporting company owns or controls (e.g. combustion of fuels in its own boilers or vehicles).<\/li>\n<li><strong>Scope 2:<\/strong> Covers <strong>indirect emissions<\/strong> associated with the production of purchased electricity, steam, heat or cooling that the company physically consumes.<\/li>\n<li><strong>Scope 3:<\/strong> As we discussed in our previous conversation, this is about <strong>all other indirect emissions in the value chain<\/strong> company (both supplier and customer). The GHG Protocol systematically divides them into 15 mutually exclusive categories to avoid double counting of emissions. <em>(As mentioned in our discussion, the exact names of these 15 categories come from the GHG Protocol technical guidelines, although this particular glossary only refers to their existence and principles).<\/em><\/li>\n<\/ul>\n<p>When evaluating upstream phases, especially in industry, the concept of <strong>cradle-to-gate<\/strong> (from cradle to gate), which measures all emissions throughout the life cycle of products up to the moment they are accepted by the reporting company. This is closely related to the so-called. <strong>embodied emissions<\/strong>, which take into account the extraction of raw materials, production and transport of materials before their actual use. Since accurate primary data from suppliers (Tier 1, Tier 2) may not always be available, companies may <strong>screening (GHG screening)<\/strong> use secondary data or environmentally extended input-output models (EEIO) to estimate the volume of emissions in individual categories.<\/p>\n<p><strong>2. Types of science-based targets and methods for calculating them<\/strong><\/p>\n<p>SBTi requires businesses to commit to measurable goals over two time horizons:<\/p>\n<ul>\n<li><strong>Near-term SBTs:<\/strong> They must be achieved within a timeframe of 5 to 10 years and serve to immediately kick-start deep emissions reductions.<\/li>\n<li><strong>Long-term goals (Long-term SBTs):<\/strong> They determine the level of reduction that a company must achieve by 2050 at the latest (in some specific sectors as early as 2040) to reach the final state of Net-Zero.<\/li>\n<\/ul>\n<p>Specific methods are used to calculate these targets. Method <strong>Absolute contraction approach (ACA)<\/strong> across the board requires a reduction in total emissions regardless of the company&#039;s economic growth. In contrast, some industries can benefit from <strong>Sectoral Decarbonization Strategy (SDA)<\/strong> focused on emissions intensity, in which companies reduce the physical intensity of emissions (e.g. tCO2e per tonne of product produced, passenger-kilometre or tonne-kilometre) so as to converge with the sector standard by the target year.<\/p>\n<p><em><strong>3. Mitigation hierarchy: Priority of reduction<\/strong><\/em><\/p>\n<p>The key philosophical pillar of SBTi is <strong>mitigation hierarchy<\/strong>. This hierarchy clearly orders the steps in order of priority: avoidance, abatement, contributions outside the value chain (BVCM) and finally neutralization of residual emissions.<\/p>\n<p>Companies must deploy <strong>emission reduction levers<\/strong> directly in their own operations and chains, whether it is reducing energy consumption, switching to renewable sources, or technological changes. Emissions can also be reduced through the so-called. <strong>insetting<\/strong> (climate interventions deep in their own supply chain). SBTi strictly reminds that organizations <strong>may not use offsets to achieve their science-based objectives<\/strong> (compensation in the form of purchasing carbon credits from other projects that replace one&#039;s own efforts to reduce emissions). Actual abatement is thus fundamentally different from offset.<\/p>\n<p><strong>4. Residual emissions and the necessity of neutralization<\/strong><\/p>\n<p>Achieving status <strong>Net Zero<\/strong> occurs when a company reduces emissions across Scope 1, 2 and 3 to the level of residual emissions and neutralizes this balance. <strong>Residual emissions<\/strong> are those that are no longer technologically or economically feasible to completely eliminate.<\/p>\n<p>To address these emissions, <strong>neutralization<\/strong>. This includes permanent <strong>Carbon dioxide removals (CDR)<\/strong>. CDR processes must not only capture CO2 (for example, through Direct Air Capture (DACCS) or Bioenergy with Carbon Capture (BECCS)), but also permanently and sustainably store it in geological, terrestrial or oceanic reservoirs. The durability of this storage is key to preventing carbon from escaping back into the atmosphere. Natural sinks, such as reforestation or biochar, are other options for neutralization.<\/p>\n<p><strong>5. Beyond Value Chain Measures (BVCM)<\/strong><\/p>\n<p>Even though purchasing carbon credits cannot be used as a substitute for reducing your own emissions, SBTi strongly recommends investing in so-called. <strong>Beyond value chain mitigation (BVCM)<\/strong>. This is about financing additional climate projects around the world, such as preventing deforestation or building green hydrogen infrastructure.<\/p>\n<p>Companies can finance BVCM, for example, using the method <strong>\u201e&quot;ton for ton&quot;\u201c<\/strong> (corresponding to some percentage of their annual residual emissions) or by the method <strong>\u201e&quot;money for a ton&quot;\u201c<\/strong> (by channelling fixed funds calculated on the basis of a scientifically based carbon price or social cost of carbon).<\/p>\n<p>It is important to communicate properly with these external investments so that companies avoid <strong>greenwashing<\/strong>. While many businesses declare &quot;carbon neutrality&quot; (so-called. <strong>Climate compensation claim<\/strong>), where they mathematically try to &quot;erase&quot; their emissions by purchasing credits, the so-called. <strong>Climate contribution claim<\/strong> (claim about climate contribution). This claim fairly acknowledges the existence of own non-excluded emissions and communicates only financial or technological support for global efforts to mitigate climate change, without trying to artificially balance to zero. Extreme care must also be taken with <strong>double counting<\/strong> or double claiming of the same savings credit by multiple entities within voluntary carbon markets.<\/p>\n<p><strong>6. Specific requirements: FLAG sectors and finance<\/strong><\/p>\n<p>Emissions are not the same in all sectors. An extremely specific approach is required by the sector <strong>AFOLU<\/strong> (Agriculture, Forestry and Other Land Use), which SBTi regulates through its standards <strong>FLAG<\/strong> (Forest, land and agriculture).<\/p>\n<p>Under the FLAG, companies are required to monitor the impacts of deforestation and land use change (both direct dLUC and indirect iLUC) and ensure that zero deforestation commitments are met. Companies that grow or process agricultural commodities are not only required to reduce emissions, but must also actively implement <strong>Biogenic CO2 removals<\/strong>. These include, for example, agroforestry, restoration of degraded soils, improvement of soil organic carbon sequestration, and sustainable forest management. The sector is divided into supply FLAG companies (typically producers with scope 1 emissions) and demand FLAG companies (end sellers of goods who have these emissions at the input of their value chain, and therefore in Scope 3).<\/p>\n<p>Another very important sector is <strong>financial system<\/strong>. Banks, asset managers and private equity funds produce relatively few physical direct issues (from their offices), but finance a huge number of issues. The rules for financial institutions require inclusion <strong>financed emissions<\/strong> arising from loans and on-balance sheet investments into reporting. At the same time, they must monitor <strong>facilitated emissions<\/strong> arising from insurance or securities and underwriting advice. These institutions must commit to phasing out high-carbon assets and gradually transform their portfolio climate alignment, thereby ensuring the transition of their clients and counterparties to a state of sustainability.<\/p>\n<p><strong>7. The way forward for a just transition<\/strong><\/p>\n<p>The transformation of businesses and states to a decarbonized economy must be aligned with socio-economic factors. SBTi supports the principle of the so-called. <strong>Just transition<\/strong>, which means that greening the global economy must be fair and inclusive towards the most vulnerable communities. The aim is to <strong>Climate justice<\/strong> is to ensure that the fight against global warming does not result in the trampling of human rights or the loss of decent work opportunities without adequate compensation.<\/p>\n<p>Thanks to precise definitions and strict, scientifically based standards, such as <a href=\"https:\/\/www.co2news.sk\/wp-content\/uploads\/2026\/05\/1779249052367.pdf\"><span style=\"color: #0000ff;\">brought by SBTi<\/span><\/a>, corporate climate action is no longer just a form of green PR. It is becoming a data-driven, standardized transformation that combines innovative engineering, green economics, and progressive finance to keep our world stable for future generations. <em><strong>JRi&amp;CO2AI\u00a0<\/strong><\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>Klimatick\u00e1 kr\u00edza predstavuje jednu z najnaliehavej\u0161\u00edch v\u00fdziev s\u00fa\u010dasnosti. Organiz\u00e1cia Science Based Targets initiative (SBTi) vznikla s cie\u013eom umo\u017eni\u0165 spolo\u010dnostiam a finan\u010dn\u00fdm in\u0161tit\u00faci\u00e1m na celom svete zohra\u0165 svoju \u00falohu v boji proti glob\u00e1lnemu otep\u013eovaniu. SBTi<\/p>","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-39223","post","type-post","status-publish","format-standard","hentry","category-udrzatelnost_uhlikova-neutralita"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts\/39223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/comments?post=39223"}],"version-history":[{"count":4,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts\/39223\/revisions"}],"predecessor-version":[{"id":39228,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/posts\/39223\/revisions\/39228"}],"wp:attachment":[{"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/media?parent=39223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/categories?post=39223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.co2news.sk\/en\/wp-json\/wp\/v2\/tags?post=39223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}