GLOSSARY
SBTi (Science Based Targets initiative)
The Science Based Targets initiative (SBTi) is a private-sector program that helps companies set greenhouse-gas reduction targets consistent with the temperature limits of the Paris Agreement, and independently verifies whether those targets meet the bar. Companies that submit targets often include supply-chain (Scope 3) reduction goals alongside their own operational targets.
Why it matters for Tier-2/3
As OEMs and large parts makers adopt SBTi-approved targets, they increasingly ask suppliers for reduction plans or expanded renewable-energy use to help meet those goals. A Tier-2/3 supplier doesn't need to join SBTi directly, but understanding a customer's target timeline and expectations is useful leverage in future negotiations.
Related
Informational only — this does not replace an official ESG evaluation. Independent content; not affiliated with or endorsed by any framework organization.