SBTi readiness for Indian companies · Updated October 2026
SBTi for Indian companies: the complete guide
Global customers, investors and lenders now ask Indian companies one question more than any other: do you have a science-based target? This guide explains what SBTi asks for, how long it takes, what usually gets in the way, and where Indian listed companies stand today.
SBTi in one minute
The Science Based Targets initiative (SBTi) checks whether a company’s emissions targets are in line with what climate science says is needed to limit warming to 1.5°C. A company sets its targets. SBTi reviews them against its criteria. Validated targets are published on SBTi’s public Target Dashboard.
There are two kinds of target.
- Near-term targets cut emissions over the next 5 to 10 years.
- Net-zero targets cut emissions by at least 90% across the whole value chain, by 2050 at the latest. Only the small remainder is neutralised, with permanent carbon removals.
More than 10,000 companies worldwide had validated targets by January 2026. Together they represent over 40% of global market capitalisation.
SBTi validates targets. It does not certify companies. The right phrase is “SBTi-validated targets”.
Why Indian companies are being asked about SBTi
Global customers
Multinationals have their own Scope 3 targets, and their suppliers’ emissions are part of them. Many now ask suppliers to set science-based targets. Exporters in IT services, textiles, pharma, chemicals, auto components and packaging feel it first.
Investors and lenders
Asset managers and banks screen portfolios on climate targets. An SBTi-validated target is the most widely recognised signal that a target is credible.
Europe
CBAM’s definitive phase began in January 2026 for carbon-intensive goods entering the EU. European buyers also need value-chain emissions data for their own reporting, and they ask Indian suppliers for it.
CBAM Guide for Indian ExportersIndia’s own rules
BRSR asks for emissions data and targets. BRSR Core adds assurance for the largest companies. The Carbon Credit Trading Scheme (CCTS) puts emission intensity targets on obligated sectors.
BRSR and BRSR Core GuidePeers
In IT services, cement, telecom and textiles, validated targets are fast becoming the norm. Buyers and analysts now compare you with the peers who already have one.
See the sector dataYour own value chain
A science-based target is also a management tool. It shows where your emissions sit, which suppliers matter most, and where cuts pay back first.
Supplier ESG and Value Chain GuideIndia’s SBTi picture: data from TERRA
TERRA, Earth5R’s climate readiness platform (Trajectory, Environment, Resilience, Reach, Accountability), tracks the climate targets of 1,200+ Indian listed companies from their filings and from the SBTi Target Dashboard. This is the picture as of 30 September 2026.
What the data shows
- IT services leads. 12 of 65 companies are SBTi-validated, and 5 more are committed.
- Cement is ahead of other heavy industries. 5 of 38 are validated, including UltraTech, ACC and Ambuja.
- Exporters move first. Textiles (4 of 44 validated) and packaging (4 validated in petrochemicals and plastics) are driven by global brand customers.
- Steel, banking and capital goods have no validated targets yet, despite high exposure. Steel is also being brought under CCTS, with draft emission intensity targets published in June 2026.
- Many announced net zero years are not science-based. 112 companies have a net zero year without SBTi validation. They are the largest group one step away from SBTi. Investors increasingly ask which targets are validated.
- Commitments lapse. A commitment carries a 24-month deadline to submit targets. 14 Indian listed companies missed it and now show as “Commitment Removed”.
SBTi-validated targets by sector
Bar length shows companies per sector. Validated Committed
| Sector | Tracked | Validated | Committed | Validated and committed |
|---|---|---|---|---|
| IT Services | 65 | 12 | 5 | |
| Pharmaceuticals and Healthcare | 101 | 7 | 3 | |
| Cement and Building Materials | 38 | 5 | 1 | |
| Speciality Chemicals | 81 | 4 | 1 | |
| Infrastructure and Real Estate | 32 | 4 | 2 | |
| Petrochemicals and Plastics | 35 | 4 | 0 | |
| Automotive | 77 | 4 | 1 | |
| Textiles and Apparel | 44 | 4 | 0 | |
| Telecom and Communication | 15 | 3 | 0 | |
| Other sectors with validated targets | 11 | 2 | ||
| Diversified Manufacturing, Gems and Jewellery | 0 | 2 | ||
| Banking, Financial Services and Insurance | 83 | 0 | 1 | |
| Steel | 29 | 0 | 1 | |
| Capital Goods and Engineering | 64 | 0 | 1 | |
| Total | 1,200+ | 58 | 20 |
Indian companies leading on science-based targets
These Indian listed companies have SBTi-validated targets. They show what is possible in every major sector, and they are the companies others can learn from. NZ marks a validated net-zero target, with its year.
- IT Services
- BirlasoftNZ 2040CoforgeNZ 2040HCLTechNZ 2040HexawareNZ 2040InfosysMastekNZ 2050Persistent SystemsNZ 2050SubexNZ 2050Tata Consultancy ServicesTech MahindraNZ 2035WiproNZ 2040Zensar TechnologiesNZ 2045
- Pharmaceuticals and Healthcare
- Cohance LifesciencesNZ 2050Divi’s LaboratoriesNZ 2050Dr. Reddy’s LaboratoriesNZ 2045Granules IndiaNZ 2050Neuland LaboratoriesNZ 2050Piramal PharmaSyngene International
- Cement
- ACCNZ 2050Ambuja CementsNZ 2050JK CementJK Lakshmi CementNZ 2047UltraTech CementNZ 2050
- Speciality Chemicals
- Aarti IndustriesNZ 2050NOCILPrivi Speciality ChemicalsNZ 2050Tata ChemicalsNZ 2045
- Infrastructure and Real Estate
- Brigade EnterprisesNZ 2045Lodha (Macrotech Developers)NZ 2050Mahindra Lifespace DevelopersSignatureglobalNZ 2050
- Petrochemicals and Plastics (packaging)
- AGI GreenpacNZ 2050EPLNZ 2050Supreme IndustriesNZ 2050UFlexNZ 2050
- Automotive
- Apollo TyresNZ 2050CEATNZ 2050JK TyreNZ 2050Mahindra & Mahindra
- Textiles and Apparel
- ArvindNZ 2050Indo Count IndustriesNZ 2040TridentNZ 2050Welspun LivingNZ 2040
- Telecom
- Bharti AirtelNZ 2050Indus TowersNZ 2050Tata CommunicationsNZ 2035
- Other sectors
- APL Apollo TubesNZ 2050Dabur IndiaNZ 2045Elecon EngineeringGodrej AgrovetNZ 2035Hindustan ZincNZ 2050Kansai Nerolac PaintsMahindra Holidays & ResortsMahindra LogisticsMITCON ConsultancyPDSTata PowerNZ 2045
On the path: committed to SBTi
These companies have committed to set science-based targets and are working towards validation.
The path to SBTi validation, step by step
This is the route under the current Corporate Net-Zero Standard (Version 1.3.1) and Near-Term Criteria, which companies can use until the end of 2027.
Commit
Optional. Sign the commitment letter and you appear on the dashboard as “Commitment to Set Targets”. You then have 24 months to submit. Companies that are ready can skip this and go straight to validation.
Measure
Build a complete base-year inventory: Scope 1, Scope 2, and a Scope 3 screening across all 15 categories. This is where most of the time goes.
Set targets
Near-term targets covering at least 95% of Scope 1 and 2. A Scope 3 target covering two-thirds of Scope 3 if it is 40% or more of total emissions. A net-zero target for 2050 or earlier.
Validate
Submit through the SBTi Services validation portal and pay the fee. SBTi Services aims to deliver corporate results within 40 business days. Small companies can use the simpler SME route.
Disclose and deliver
Publish your targets, report progress every year, and revalidate at least every five years, or sooner if your company changes significantly.
Typical time for an Indian listed company: about 6 to 12 months from a standing start to submission. Most of it goes into the Scope 3 inventory and supplier data. A company that already reports Scope 1 and 2 in BRSR starts with a head start on the first half.
Measurement starts on the ground
What SBTi validation costs and how long it takes
The validation fee
SBTi Services charges a fee for each validation, tiered by company revenue. For large companies it runs to five figures in US dollars per service. Check the current fee schedule at sbtiservices.com before you budget.
The SME route
Independent companies under 250 employees and below SBTi’s turnover and asset limits can use the SME route, at about USD 1,250 for a near-term target. Financial institutions and oil and gas companies cannot use it.
The real cost
The fee is the small part. The larger cost is the emissions inventory, above all Scope 3, plus supplier data and the time of your sustainability, finance and procurement teams.
What changed in 2026: the SBTi Corporate Net-Zero Standard V2.0
SBTi published Version 2.0 of its Corporate Net-Zero Standard on 11 June 2026. It is the first full rewrite since the standard launched in 2021. Here is the timeline that matters for Indian companies.
The main shifts
- Two company categories, A and B, sized on emissions, finances and location, with requirements adapted to each. They replace the separate SME route over time.
- Scope 1 gets its own target, separate from Scope 2, with more than one way to set it, including asset transition.
- Scope 3 matters to more companies. The threshold that triggers Scope 3 requirements drops sharply from today’s 40%.
- Ongoing assessment, not one-time validation. Annual progress reporting, assurance of the base-year inventory for larger companies, and an end-of-cycle assessment.
- Internal approval replaces the public commitment as the starting point.
- Ongoing Emissions Responsibility recognises action on remaining emissions. It adds to cuts in the value chain. It does not replace them.
What it means for you. Existing validated targets stay valid until their target year or their five-year review, whichever comes first. If you are preparing now, submit under Version 1.3.1. From 2027, preparation also needs transition plans, assured data and yearly progress reporting, not just targets.
What usually blocks Indian companies
From TERRA’s view of 1,200+ Indian listed companies, the same six problems come up again and again.
- No Scope 3 figure. Most Indian listed companies report Scope 1 and 2 in BRSR. Few have a full Scope 3 screening. Validation cannot start without it.
- Weak base-year data. Boundary changes, acquisitions and estimated figures make the base year hard to defend.
- No supplier data. Scope 3 for manufacturers depends on suppliers, many of them small MSMEs with no emissions data at all.
- Targets first, maths later. A net zero year announced without a pathway often fails SBTi’s ambition checks.
- Commitment without a plan. The 24-month window passes and the commitment lapses. 14 Indian listed companies have been through this.
- Confusion with CCTS. Some obligated companies assume CCTS compliance covers SBTi. It does not.
SBTi vs CCTS, net zero pledges and carbon neutral claims
| SBTi target | CCTS (India’s carbon market) | Own net zero pledge | Carbon neutral claim | |
|---|---|---|---|---|
| What it is | Voluntary, science-checked emissions targets | Mandatory emission intensity targets for obligated sectors | A company’s own announced goal | Emissions offset with credits |
| Who checks it | SBTi validates | Government sets targets; BEE administers | No one | Varies |
| Covers Scope 3 | Yes, where material | No | Sometimes | Rarely |
| Can carbon credits count | No, not towards the target | Yes, credits are traded | Varies | Yes, that is the method |
| What investors read it as | Strongest signal | Compliance | Intention | Weak on its own |
CCTS is about compliance in India. SBTi is about credibility with global customers and investors. Seven sectors carry binding CCTS targets today: aluminium, cement, chlor-alkali, pulp and paper, petroleum refining, petrochemicals and textiles. Iron and steel is next. Obligated companies increasingly need both, and the same emissions inventory serves both. More on CCTS emission intensity targets.
How TERRA and Earth5R help you prepare for SBTi validation
TERRA, Earth5R’s climate readiness platform, has an SBTi and Climate Readiness module. SBTi validates. Earth5R prepares your company.
SBTi and net zero tracker
Every Indian listed company’s SBTi status, target years and position against sector peers. For example: “6 of 14 peers in your sector have validated targets.”
Open TERRAReadiness assessment
Checks your company against what validation needs: base year, Scope 3 screening, target ambition. You get a ranked gap list. “Scope 3 not screened” comes first, because it blocks everything else.
Check your climate readinessEmissions inventory
Your Scope 1, 2 and 3 calculated, including a first complete Scope 3 figure built from purchase and travel data.
Talk to usValue chain data collection
Simple forms that collect emissions data from suppliers, including small MSMEs that have never measured before.
Talk to usPathway support
Earth5R and its expert network guide you from inventory to submission, one planned step at a time, aligned with SBTi criteria.
Talk to usClimate and SBTi training
Courses on SBTi and net zero, Scope 1, 2 and 3, CCTS and climate risk disclosure, so your team knows what a target requires before you commit.
Corporate sustainability trainingCCTS tracker
For obligated sectors: your emission intensity target and the gap to it, alongside your SBTi readiness.
Open TERRACarbon credit sourcing
Credible projects for action beyond your target, including Earth5R’s agricultural carbon work. Credits do not count towards an SBTi target. They support action beyond it.
Talk to usFree guides and templates
Our Net Zero and Scope 3 Guide includes a workbook with a Scope 3 screen and an SBTi 40% and 67% check.
Net Zero and Scope 3 GuideEarth5R in the field
TERRA tracks 1,200+ Indian listed companies, and Earth5R’s field operations cover 150+ Indian cities.
FAQ: SBTi for Indian companies
Is SBTi mandatory in India?
No. It is voluntary. But global customers, investors and lenders increasingly expect it, and BRSR already asks for emissions targets.
How long does SBTi validation take?
Typically 6 to 12 months of preparation for a listed company. SBTi Services then aims to deliver corporate validation results within 40 business days of the service start.
What does SBTi validation cost?
SBTi Services charges a validation fee tiered by revenue, running to five figures in US dollars per service for large companies. The SME route costs about USD 1,250 for a near-term target. The bigger cost is building the emissions inventory, especially Scope 3.
Do we need a Scope 3 target?
Under the current criteria, yes, if Scope 3 is 40% or more of your total emissions. Your near-term Scope 3 targets must then cover at least two-thirds of Scope 3. For most manufacturers and service companies, Scope 3 is above 40%. Version 2.0 lowers the threshold sharply.
Can we use carbon credits to meet an SBTi target?
No. Credits can support action beyond your target, but they do not count towards it.
Do renewable energy purchases count?
They can reduce your market-based Scope 2 emissions when the electricity and its certificates meet SBTi’s quality criteria. Check the criteria before you sign a power purchase agreement.
We are a subsidiary of a global group. Does our parent’s target cover us?
It can, if the group’s validated target covers your operations. Many Indian subsidiaries of multinationals report the parent’s target. A target of your own makes your progress visible to Indian investors.
We are under CCTS. Is that enough?
No. CCTS sets emission intensity targets for compliance in India. SBTi covers cuts across your value chain, checked against climate science. The same inventory serves both.
Is there an SBTi route for SMEs in India?
Yes. Independent companies with fewer than 250 employees and below SBTi’s turnover and asset limits can use a simplified SME route with lower fees. Under Version 2.0, it is being replaced by two company categories.
Are there SBTi rules for banks and financial institutions?
Yes. SBTi treats a company earning 5% or more of its revenue from financial activities as a financial institution. These use the Financial Institutions Net-Zero (FINZ) Standard, published in July 2025, or the Financial Institutions Near-Term Criteria, both focused on financed emissions.
What about agriculture, food and forestry companies?
Companies in land-intensive sectors, or with significant land-based emissions, set separate targets under SBTi’s Forest, Land and Agriculture (FLAG) guidance. That guidance is being revised to match Version 2.0.
What happens if we commit but do not submit in time?
Your status on the Target Dashboard changes to “Commitment Removed”. 14 Indian listed companies are in this position today. You can still submit targets later, and the status updates once they are validated.
What happens after validation?
You publish the targets, report progress every year, and revalidate at least every five years. Under Version 2.0, ongoing progress matters more than the one-time validation.
What changed with the new SBTi Net-Zero Standard V2.0?
Version 2.0 was published in June 2026. It adds company categories, a separate Scope 1 target, a wider Scope 3 requirement, assurance and yearly progress reporting. Submissions open in early 2027, and it becomes the only route for new submissions in 2028.
Where do we start?
With a complete emissions inventory and a gap check. Take the two-minute Climate Readiness Check, or talk to us.
Ready to start on science-based targets?
Find out where you stand in two minutes, or talk to our team about your path to validation.