Since the Paris Agreement and particularly after COP26, climate disclosure has shifted from a voluntary action to an essential requirement, serving as a critical basis for investors and stakeholders to assess corporate performance. Instead of mere "disclosure," the market now demands concrete emission reduction pathways. However, this trend has also increased the risk of "greenwashing," posing challenges to the transparency and credibility of Net-zero commitments.
In this context, there is a vital need for a common, science-based standard with a verification mechanism. SBTi (Science Based Targets initiative) emerged as a tool to help businesses build emission reduction targets aligned with climate science and recognized through a rigorous validation process.
What is SBTi?
The Science Based Targets initiative (SBTi) is a collaborative initiative between the United Nations Global Compact (UNGC), the World Resources Institute (WRI), and the carbon Disclosure Project (CDP), aimed at helping companies set greenhouse gas (GHG) emissions reduction targets consistent with the goals of the Paris Agreement. Under SBTi, companies are expected to reduce approximately half of their GHG emissions from their chosen base year by 2030 and achieve net-zero emissions by or before 2050.
How does SBTi achieve this?
SBTi has developed a range of standards, general guidance, sector-specific guidance, and tools to help companies set science-based net-zero targets. Key SBTi documents include:
Steps to get a commitment recognized by SBTi
To enhance the credibility of net-zero claims, SBTi provides target validation services. To achieve SBTi recognition, a business must follow these steps:
Step 1: Commit
Submit a letter of commitment via the SBTi online portal. The company's name will be listed as "committed" on the global climate map.
Step 2: Develop Targets
This is the most critical phase. The business must conduct a GHG inventory for all three scopes according to standards.
Step 3: Submit
Complete technical forms and submit data through the SBTi validation system.
Step 4: Validate
SBTi experts review the submission. Companies must be prepared to explain their assumptions and calculation methods.
Step 5: Announce
Once approved, targets are published on the SBTi website and partner platforms. Businesses must then report their progress annually.
The process from start to approval typically takes 6 to 24 months, depending on the scale and complexity of the value chain. In terms of validation fees, SBTi applies different pricing depending on the scope of the targets and the nature of the company. The indicative fees for major services are as follows:
Validation Fees
Fees vary based on the scope and nature of the business. Basic rates include:
Service | Fee (USD) | Turnaround Time |
Near-term target submission (5–10 years) | 11.000 | 30 business days |
Near-term / Net-zero target update | 5,500 | 30 business days |
Net-zero target submission | 11.000 | 60 business days |
Near-term update + Net-zero submission package | 14,750 | 60 business days |
Current implementation status in Vietnam
The application of SBTi standards in Vietnam is currently driven mainly by a “top-down supply chain” approach: many businesses operating in Vietnam must meet the requirements of their parent companies or international clients. However, considering specifically businesses headquartered in Vietnam, the number of cases with SBTi-approved targets remains limited: as of January 2026, there are 18 Vietnamese enterprises committed and validated. Frasers Property Vietnam is the first real estate enterprise in Vietnam to have its targets approved by SBTi, followed by major domestic enterprises such as Vinamilk, which have also begun to "position" SBTi as a reference standard when developing their Net Zero roadmaps[1].
Over the next one to three years, the level of interest and implementation of SBTi in the Vietnamese market is highly likely to increase, led by the group of businesses facing compliance and supply chain pressures. Applying SBTi criteria helps businesses build scientifically grounded near-term and long-term targets and roadmaps. SBTi's validation mechanism also helps these targets become credible not only to the domestic market but also internationally.
Currently, GreenCIC provides GHG/carbon footprint inventory services, development of emission reduction plans and roadmaps towards net-zero, and carbon market-related consulting. At the same time, GreenCIC can support businesses in preparing data and documentation to pursue targets according to international standards like SBTi.
