Getting ready for SBTi using your Coolset emission data

Purpose

This article explains what the Science Based Targets initiative (SBTi) is, what it requires at a high level, and how you can use your existing Coolset emissions data (Scopes 1–3) to prepare for setting and submitting SBTi targets.

Coolset helps you build the foundational inputs that SBTi expects, such as a robust base-year inventory, clearly defined boundaries, and transparent documentation.

What is the Science Based Targets initiative (SBTi)?

SBTi provides guidance and standards for setting science-based climate targets. It also offers validation services, evaluating submitted targets to ensure alignment with climate science. Once validated, targets are publicly listed.

What companies typically need to do

To prepare for SBTi, companies generally must:

• Build a full GHG inventory across Scopes 1, 2, and 3

• Decide on target boundaries and coverage, especially for Scope 3

• Set near-term targets (typically 5–10 years), and optionally a net-zero target

• Submit their targets and documentation to SBTi Services for validation (fees and processing timelines apply)

Key SBTi rules to plan around

Scope 3: When it’s mandatory

If Scope 3 emissions are ≥40% of your total emissions (Scopes 1+2+3), you're required to set Scope 3 targets.

Scope 3: Required coverage

If Scope 3 is required, your targets must cover at least 67% of your total Scope 3 emissions. This can include reduction targets and/or supplier engagement targets.

Near-term ambition

• Scope 1 and 2 targets must align with a 1.5°C pathway

• Scope 3 ambition levels depend on the sector and target method

FLAG (Forests, Land, and Agriculture)

If you have significant emissions from land/agriculture-based inputs (e.g., leather, cotton, timber, food), you'll need to:

• Follow SBTi’s FLAG guidance

• Possibly create a separate FLAG target

How to use Coolset to prepare for SBTi

1. Lock in a Defensible Base Year

Your SBTi target starts from a base-year inventory. In Coolset, make sure your chosen base year:

• Covers Scopes 1 and 2 fully

• Includes a complete Scope 3 screening and quantifies the categories you plan to target

• Applies consistent organizational and operational boundaries and documents your decisions

✅ Key Output: Total emissions for Scopes 1–3, with detailed breakdowns by scope and category

2. Determine if Scope 3 targets are required

Use your Coolset data to:

• Calculate Scope 3 as a percentage of total emissions (Scopes 1+2+3)

• If it's ≥40%, Scope 3 targets are required

3. Define the Scope 3 coverage set (the 67% Rule)

If Scope 3 targets apply:

• Use Coolset to identify and rank major Scope 3 sources

• Select enough categories/sources to cover ≥67% of Scope 3 emissions

• Document why any categories are excluded (e.g., immaterial, not applicable)

✅ Key Output: A documented list of included categories/sources and their % share of Scope 3.

4. Check for FLAG relevance

If you see significant land/ag emissions in Coolset:

• Treat this as an early FLAG signal

• You may need to develop a separate FLAG baseline and collect additional data per SBTi FLAG guidance

✅ Even if you’re not ready to submit a FLAG target, spotting hotspots early avoids costly rework

5. Start compiling submission-ready documentation

SBTi’s validation process is documentation-heavy. You can use Coolset outputs to start compiling:

• Inventory methodology (data sources, emission factors, boundaries)

• Base year rationale

• Scope 3 screening results and quantified categories

• Scope 2 reporting method (location-based vs market-based), plus any renewable energy strategy

What Coolset doesn’t do yet (plan ahead)

Coolset supports emissions measurement and analysis, but you’ll still need to handle:

• Choosing SBTi methods and filling out tools/forms

• Writing targets in exact SBTi language

• Assembling submission packages

• Handling special cases (e.g., FLAG, structural changes, mergers/divestments)