Climate requirements and reporting for suppliers

A science-based target is a climate target that is based on the latest research and the Paris Agreement goal of limiting global warming to (1.5°C). It shows how much and how quickly a company needs to reduce its greenhouse gas emissions to contribute to the 1.5°C target. This ensures that the company's goals are both ambitious and realistic, and that they are comparable to those of other companies on a global scale.

Note that the goal must be aligned with science – but it does not have to be validated by SBTi.

The SBTi (Science Based Targets initiative) is an international corporate climate action organization. It was initially founded as a collaboration between organisations such as the UN Global Compact, World Wide Fund for Nature (WWF), CDP and the World Resources Institute (WRI).

SBTi helps companies to:

• set climate goals based on research,
• have the goals validated, and
• follow up on progress over time.

When a target has been validated by the SBTi, it means that independent experts have assessed it as ambitious and in line with the 1.5°C target.

No. It is not a requirement that your goals have been validated by SBTi. It is sufficient that your climate goals are in line with the Paris Agreement (aligned with science), and that you can document this by, for example:

• using SME Climate Hub, or

• a public climate target that follows the GHG Protocol.

You can use SBTi's Target setting tool to calculate and assess whether your goals follow the required reduction path. SMEs in particular can benefit from using the tool to validate internally before considering external validation.

Yes. If you are a small or medium-sized enterprise (SME), you can use SBTi's simplified SME route. This route is made specifically for companies with fewer resources, so they can more easily set and submit climate goals.

SBTi's definition of an SME

SMEs must meet all of the following criteria:

• Have <10,000 tCO2e across scope 1 and location-based scope 2
• Is not a subsidiary of a parent company whose combined companies fall under the standard validation route
• Is not classified in the Financial Institutions (FIs) and Oil & Gas (O&G) sectors
• Is not required to set targets using sector-specific criteria (such as the sector-specific decarbonisation methodologies) developed by the SBTi (see SBTi sector guides for requirements)

*Mandatory FLAG sector companies that meet all other criteria are not affected by this criterion
 
In addition, three or more of the following must be met

• The total number of employees is less than 250 people
• The total annual turnover is less than 50 million euros
• You have less than €25 million in total assets
• Is not in a mandatory FLAG sector*
  • You are not in a mandatory sector for Forest, Land and Agriculture Guidance

*Companies in mandatory forest, land and agriculture sectors (FLAGs) that meet all other SME criteria are allowed to use the SME validation route. See criterion 1 of the SBTi FLAG Guide for details on the mandatory FLAG sectors.

Through the SME route, the company can quickly commit to ambitious goals without having to go through the full validation process. Read more in our Guide for SMEs.

Yes. If you want your goals to be publicly assessed, you can apply for validation via SBTi or similar initiatives. Validation is voluntary, but can provide extra credibility.

Salling Group recommends SBTi as a widely used and internationally recognised framework for setting climate targets. However, if it is not possible for you to get an SBTi-validated target right now, other solutions can be accepted, as long as they meet requirements for transparency, data quality and ambition.

If you do not have an SBTi-validated target, we can accept climate targets that:

• use SBTi's tools, e.g. SBTi's Target setting tool, to ensure that your baseline and targets meet SBTi's criteria.
• follow the GHG Protocol and is documented in a publicly available climate account
• are included in your CSRD reporting (the EU's new requirements for sustainability reporting)

The most important thing is that your process is documented and can be verified.

Net Zero is a widely used climate concept and may be defined differently by different initiatives and standards. Companies should refer to the requirements of the framework they use when setting and reporting climate targets.

The GHG Protocol is the international standard for measuring greenhouse gas emissions. It provides companies with a common language and a clear structure for how to prepare a climate account. The GHG Protocol divides emissions into three groups – called scopes:

• Scope 1: direct emissions from own activities (e.g. machinery, cars, boilers).

• Scope 2: indirect emissions from purchased energy (e.g. electricity and heat).
• Scope 3: other indirect emissions in the value chain (e.g. transport, deliveries, waste, use of products).

By following the GHG Protocol, your climate data becomes transparent, comparable and trustworthy – and it forms the basis for both climate accounts and science-based targets.

Start by collecting your emissions data (scope 1–3) and other recognised tools and guidance to support your climate reporting and documentation. You can use SBTi's tools.