How to Set a Science-Based Net-Zero Target (SBTi) for an Indian Company

"Net-zero" has become one of the most claimed and least verified terms in corporate sustainability. The Science Based Targets initiative (SBTi) exists to fix that — it is the dominant global framework for validating that a stated net-zero target is actually consistent with climate science, not just a marketing commitment.

Why "science-based" is a specific, checkable claim

An SBTi-validated target must meet defined criteria — a company cannot simply declare "net-zero by 2050" and expect it to carry the same weight as a validated target. The distinction matters increasingly to investors, lenders and large customers who now ask specifically whether a target is SBTi-validated, not just whether one exists.

Step 1: build the emissions inventory first

A target is only as credible as the inventory behind it. This means a full Scope 1, 2 and 3 accounting exercise — see our companion guide on GHG accounting for Indian companies for how to build that foundation. Without this, target-setting is guesswork.

Step 2: determine if Scope 3 and FLAG apply

• Scope 3 threshold. If Scope 3 emissions are 40% or more of total emissions — true for most companies with significant purchased goods, agricultural inputs or logistics — a Scope 3 target is mandatory, not optional, under SBTi's near-term criteria.
• FLAG applicability. Companies in food production, agriculture, forestry, or with agricultural commodities as a material input (a food processor sourcing potatoes, palm oil, dairy or similar) fall under FLAG and must set a distinct land-sector target alongside their standard target, because deforestation, land-use change and soil carbon behave differently from energy-related emissions.

Step 3: set the near-term target

Near-term targets are set against a defined base year and must reduce absolute emissions (or, in specific cases, emissions intensity) along a pathway consistent with 1.5°C. In practice this means:

1. Selecting a base year with reliable data.
2. Modelling a reduction trajectory using SBTi's sector-specific tools where available.
3. Committing to specific interim milestones, not just an end-state number.

Step 4: set the long-term net-zero target

The net-zero target requires at least a 90% absolute reduction across the value chain by the target year (usually 2050), with any remaining residual emissions — the last 10% or less that cannot feasibly be eliminated — addressed through permanent carbon removals, not conventional avoidance credits.

Target type	Horizon	Scope coverage	Role of carbon credits
Near-term	5–10 years	Scope 1, 2, and Scope 3 if material	None — reduction only
FLAG (if applicable)	Aligned with near-term/net-zero	Land-based emissions and removals	Insetting-style interventions can count if properly documented
Net-zero	~2050	All scopes, ≥90% reduction required	Permanent removals for the final ≤10% residual only

Step 5: validate, disclose and keep it current

SBTi requires periodic reporting on progress and revalidation as circumstances change (mergers, major supply chain shifts, updated science). Pair this with BRSR or CDP disclosure so the same numbers tell one consistent story across every audience.

A realistic sequence

1. Build the full Scope 1/2/3 inventory.
2. Determine Scope 3 materiality and FLAG applicability.
3. Model and commit to a near-term target.
4. Set the long-term net-zero target with an honest residual-emissions plan.
5. Submit for SBTi validation and disclose transparently thereafter.

Carbon Credit Consulting helps Indian companies build GHG inventories, set SBTi-aligned targets and design credible net-zero roadmaps — including FLAG-track targets for agriculture-linked supply chains. Explore our ESG, BRSR reporting & net-zero strategy service, or talk to us about your target.