Will the Science Based Targets initiative (SBTi) validate a target for a coal trader, a captive coal miner or a company that serves coal mines?

It depends. C23 says SBTi will not currently validate targets for a company with any direct involvement in mining or production of oil, gas or coal, or with 50 percent or more of revenue from selling fuels or serving fossil fuel companies, or over 5 percent from fossil fuel assets. Whether a captive mine counts is for SBTi to confirm.

The three blocks in C23

• Any level of direct involvement in exploration, extraction, mining and/or production of oil, natural gas, coal or other fossil fuels, whatever share of revenue it brings.
• 50 percent or more of revenue from the sale, transmission and distribution of fossil fuels, or from providing equipment or services to fossil fuel companies.
• More than 5 percent of revenue from fossil fuel assets, such as a coal or lignite mine, used for extraction with a commercial purpose.

What the criteria say next

Such companies must follow the applicable sector standards if available. SBTi says it will not "currently" validate, so the position can change with a new edition.

Where an Indian supplier may hit it (my reading)

• A coal trader or fuel dealer: the 50 percent test applies to the sale and distribution share of revenue.
• A workshop that makes or repairs equipment for coal mines: the 50 percent test applies to equipment and services for fossil fuel companies.
• A steel, cement or power unit with its own coal block: the first bullet speaks of any direct involvement in mining, so ask SBTi whether a captive mine counts before you start.

What to tell your buyer

If you fall under C23, say so early and ask the buyer what it accepts instead, such as an inventory with a reduction plan. Do not invest in modelling a target SBTi says it will not validate.

Example: a mine-services workshop

• Revenue: rupees (Rs) 40 crore a year (one crore is ten million).
• Rs 22 crore from repairs and parts for coal mines: 22 / 40 = 55 percent, which is over the 50 percent line.
• If it were Rs 18 crore: 18 / 40 = 45 percent, under the 50 percent line on this test. The other two bullets still need checking.

What Senseible does here

Senseible reads fuel invoices and electricity bills into monthly records, so the litres, kilowatt hours and months are in one place to copy from. It does not tell you whether SBTi will validate a target for your business.

• SBTi: fuel dealers and Category 11 targets
• SBTi target for forest, land and agriculture
• Check if a supplier has an SBTi target
• Micro, Small and Medium Enterprises (MSME) carbon number

Sources: SBTi Corporate Near-Term Criteria, Version 5.3.1, April 2026

Last reviewed 2026-11-05. SBTi updates its criteria from time to time. Check the version your target will be assessed under before you rely on this answer.