How to Set Science-Based Targets: A 1.5°C Reduction Pathway for Indian Companies

Setting a Science Based Target means committing to reduce your greenhouse gas emissions at a rate consistent with limiting global warming to 1.5°C above pre-industrial levels — the goal established by the Paris Agreement. For Indian companies, this is not a distant aspiration: it is an increasingly common requirement from international buyers, institutional investors, and global value chain partners. The Science Based Targets initiative (SBTi) provides the validation framework that gives these commitments credibility.

Step 1: Commit and Register

The first step is making a public commitment to set an SBTi-validated target and registering on the SBTi website. Companies have 24 months from commitment to submit targets for validation. This commitment is visible on the SBTi website and signals to investors and buyers that you are in the process of setting a credible climate target, even before validation is complete. Many Indian companies find value in making the commitment publicly before the internal target-setting work is finished, as it creates accountability and demonstrates intention.

Step 2: Calculate Your Base Year Emissions

SBTi targets are set relative to a base year — typically the most recent year for which complete and verified GHG data is available. Your base year must include Scope 1 and Scope 2 emissions. Scope 3 must also be included if it represents more than 40% of your total emissions — which is the case for the majority of companies. Having a verified, comprehensive GHG inventory for your chosen base year is therefore a prerequisite for target-setting, not an optional step.

Step 3: Choose the Right Target-Setting Method

SBTi offers several target-setting methods. The Absolute Contraction Approach requires companies to reduce absolute emissions by at least 42% by 2030 (from a 2020 base year) to align with 1.5°C. The Sectoral Decarbonisation Approach provides sector-specific pathways for high-emitting industries like steel, cement, and power. For most Indian companies in manufacturing and heavy industry, the sectoral approach is more appropriate because it accounts for the physical reality of decarbonising energy-intensive production processes over time. Csquare supports Indian companies through the entire SBTi submission process — from base year GHG inventory to target formulation to SBTi validation.