Choosing the Right SBTi Sector Pathway | Tunley Environmental

More than 8000 businesses across various regions and sectors have set science-based targets to reduce their greenhouse gas (GHG) emissions. This aligns with increasing pressure to decarbonise industries and build climate-resilient economies. As part of this initiative, the Science Based Targets initiative (SBTi) offers tailored SBTi sector pathways which are available for various industries; choosing the right one is critical to aligning your company ambitions with global climate goals. 

What is the Science Based Targets Initiative (SBTi)? 

The Science Based Targets initiative (SBTi) is a global body enabling companies to set emissions reduction targets in line with climate science to limit global warming to 1.5°C or well below 2°C based on recommendations from the 2015 Paris Agreement. SBTi is a collaboration between Carbon Disclosure Project (CDP), UN Global Compact, World Resources Institute (WRI), the We Mean Business Coalition, and Worldwide Fund for Nature (WWF). Since its founding, over 8000 companies have had their targets validated, and while more than 10,000 have established targets or commitments.

Why Choosing the Right SBTi Sector Pathway Matters 

Every industry faces its own unique challenges in the race to achieve net zero by 2050. Each SBTi sector pathway offers a decarbonisation roadmap based on the sector’s unique emissions profile, technological opportunities and policy context. Choosing the correct one: 

• Ensures targets are credible and realistic 

• Aligns with regulatory and investor expectations 

• Provides clarity for strategic planning and investment 

• Enhances stakeholder trust and brand reputation 

Choosing the wrong pathway, however, could lead to misaligned efforts, reputational risk or failed validation of your SBTi targets. 

General Criteria for Choosing an SBTi Sector Pathway 

When deciding what pathway to choose, there are certain criteria that should already be in place:

1. Primary Business Activities

Identify which line of business is the dominant source of emissions and revenue: 

• What products or services generate the majority of revenue? 

• Where do the most carbon-intensive activities occur? 
• Which part of your value chain holds the most operational influence?
  

2. Scope 1, 2, and 3 Emissions Profile

Assess your emissions sources:

• Scope 1: Direct emissions from owned/controlled sources 

• Scope 2: Indirect emissions from purchased electricity or steam 
• Scope 3: Indirect emissions across your value chain

Check if your sector has a dedicated SBTi sector pathway: 

• If yes, you're required to use it. 
• If not, default to the cross-sector pathway and monitor for new releases.
  

4. Latest Guidance Updates

Keep up to date with the latest SBTi releases: 

• New methodologies are launched frequently 

• Work with SBTi consulting partners for insight on upcoming frameworks 

Overview of Sector-Specific SBTi Guidance and Considerations 

Currently, the SBTi has 12 established pathway guidance for various sectors. However, new guidance is occasionally announced and previous ones updated.

Apparel and Footwear

• Must address full value chain emissions (Scope 1, 2, and 3) 

• Requires Scope 3 targets if emissions exceed 40% of total 

• Focus on low-impact materials, renewable electricity, supplier engagement, circular models 

• Must address well-to-wake emissions i.e., the total lifecycle greenhouse gas (GHG) emissions associated with fuel from flights (Scopes 1 & 3) 

• Requires 1.5 °C-aligned targets using interim Aviation Pathway 

• Focus on Sustainable Aviation Fuels (SAFs), fleet efficiency, route optimisation 

• Companies in the automotive sector can use the existing Land Transport Guidance 

• Scope 3 targets critical (especially use-phase emissions) 

• Focus on vehicle electrification, supply chain emissions, sustainable manufacturing processes 

The SBTi is currently open for consultation on specific guidance being created for automotive and auto parts manufacturers. 

Building and Construction

Image credit: SBTi Building Sector Criteria in Brief

• Applies to property developers, contractors and materials producers
• Applies to old and new buildings 

• Must target embodied and operational carbon 

• Focus on: Sustainable materials, energy-efficient design, low-carbon cement

• No sector-specific pathway set yet; however, a draft is currently undergoing review 

• Must address specific chemical industry emissions 

• Focus on bespoke targets guided by upcoming sector-specific framework 

• Must include full production emissions (Scope 1 & 2 plus process CO₂) 

• Requires targets aligned with 1.5 °C via Cement Guidance 

• Focus on energy efficiency, clinker reduction, alternative fuels, and low-carbon cements

• Covers banks, asset managers, insurers 

• Must cover emissions from lending, investments, insurance (portfolio Scope 1‑3) 

• Focus on data accuracy, portfolio alignment, client engagement 

• Covered under Forest, Land and Agriculture (FLAG) guidance 

• Introduces land-based emissions and removals tracking 

• Focus on deforestation-free sourcing, soil carbon, regenerative practices 

• Must include voyage-related emissions (Scopes 1 & 3) 

• Requires near- and long-term 1.5 °C-aligned targets via Maritime Guidance 

• Focus on low-carbon fuels, operational efficiency, fleet modernisation 

• Standard currently paused pending further research and integration into Net-Zero Standard 

• Focus ongoing: phasing out fossil fuels through broader SBTi rule updates

• Must address full-generation emissions (Scope 1 & 2) 

• Requires targets aligned with 1.5 °C using dedicated guidance or upcoming Power Sector Standard 

• Focus on phasing out coal, shifting to renewables, improving grid efficiency 

• Must cover primary and secondary (recycled) processes 

• Requires targets aligned with 1.5 °C using Steel-specific pathways/tools 

• Focus on adopting SDA-based emissions pathways, decarbonising blast furnaces, and scaling scrap-based production 

What If No Sector-Specific Pathway Exists? 

Most sectors, excluding fossil fuels, can currently set science-based targets using general cross-sector methods. For high-emitting industries, the sector-specific guidance is recommended as it’s tailored to the unique needs of the listed industries and aligned with the 1.5°C climate goal. Companies in sectors without finalised guidance should use the core methodologies. The Sector Resources Summary offers an overview of available and upcoming guidance. 

If your industry lacks a dedicated SBTi sector pathway, you must: 

• Use the cross-sector pathway 

• Adopt a 1.5°C ambition for Scope 1 and 2 

• Set targets for Scope 3 if it accounts for more than 40% of emissions 

• Ensure clarity in disclosures and assumptions
  

How to Choose the Right SBTi Sector Pathway for Your Industry 

Conduct a Full GHG Inventory 
Identify and quantify emissions across Scopes 1, 2 and 3 

Review SBTi Guidance 
Confirm if a SBTi sector pathway exists for your core operations

Engage Internal Stakeholders 
Include sustainability leads, finance, risk and operations

Choose the Appropriate Pathway 
If multiple apply, prioritise based on emissions significance. You can also engage with a third-party consultancy service to assist with choosing the right pathway and mapping out an effective strategy to align with SBTi.

Model Emissions Reductions 
Use SBTi tools or external models to project decarbonisation

Submit Targets for Validation 
SBTi reviews and approves based on defined criteria

Report Progress Annually 
Include Scope 1-3 updates and performance against targets 

The Importance of Third-Party Consultation in Aligning with SBTi 

Working with certified SBTi consulting professionals can provide: 

• Help with carbon footprint analysis and emissions modelling 

• Validation support and risk review before submission 

• Custom decarbonisation roadmaps tailored to your pathway 

Learn more: Align Your Goals With Science-Based Targets Initiative (SBTi) 

The Bottom Line

Developing a strong, credible climate policy depends mostly on choosing the suitable SBTi sector pathway for your company. Companies who move early to fit SBTi paths will be more suited to negotiate risks and seize new opportunities as regulatory pressure builds from the EU's Corporate Sustainability Reporting Directive (CSRD) to investor-driven ESG standards. The existing pathways cover a wide variety of industries, making it easier to set specific science-based targets to reduce emissions.