When does SBTi require a Scope 3 target?
Under SBTi's corporate near-term criteria, you need a Scope 3 target when Scope 3 is 40 percent or more of your total Scope 1, 2 and 3 emissions, and the target must cover at least two thirds of Scope 3. Companies on the SME route do not set a Scope 3 target; they commit to measure and reduce it.
The 40 percent test
- Screen all 15 Scope 3 categories, using spend-based estimates where you have nothing better.
- Add Scope 1, Scope 2 and Scope 3 for the base year.
- Divide Scope 3 by the total.
- If the share is 40 percent or more, a near-term Scope 3 target is required.
What the target must cover
The near-term Scope 3 target must cover at least 67 percent of Scope 3 emissions. You can choose an absolute reduction, an intensity reduction, or a supplier engagement target, where a share of suppliers by emissions set their own science-based targets. Most companies combine purchased goods, transport and use of sold products to reach the coverage.
The SME route
SBTi's SME route has a fixed Scope 1 and 2 target and no Scope 3 target. The company commits to measure and reduce its Scope 3 emissions. Check the SME eligibility criteria first, because a company that does not qualify must follow the corporate route and the 40 percent test.
Edge cases
- Land-intensive businesses may also need a separate forest, land and agriculture (FLAG) target.
- If a screening estimate puts you close to 40 percent, improve the largest categories with activity data before deciding.
- Base year recalculation after an acquisition can move you across the threshold.
Worked example: a factory testing the threshold
- Scope 1: 300 t; Scope 2: 400 t; Scope 3 (screened): 900 t
- Total: 300 + 400 + 900 = 1,600 t
- Scope 3 share: 900 / 1,600 = 56.25 percent, above 40 percent, so a target is required
- Minimum coverage: 900 x 0.67 = 603 t of Scope 3 inside the target boundary
What Senseible does here
Senseible keeps Scope 3 lines from purchase invoices in a separate supplier evidence trail, which helps estimate the 40 percent test. It does not submit or validate SBTi targets.
Sources: SBTi Corporate Near-Term Criteria and SME target route, GHG Protocol Corporate Value Chain (Scope 3) Standard
Last reviewed 2026-10-15. SBTi's Corporate Net-Zero Standard version 2 may change the Scope 3 threshold and coverage rules; recheck before setting a target.