Your climate transition plan: realistic targets, with or without SBTi

Climate blog 3/4

Summary

• A climate transition plan translates your climate ambition into concrete targets, measures, owners and budget.
• It is a core element of both European sustainability reporting (ESRS) and sustainability certifications.
• You can have your targets validated by the Science Based Targets initiative (SBTi), but you can also set science-based targets yourself.
• Most importantly: start with the data you have, set an achievable interim target for 2030, and make sure every measure has an owner.

It's Tuesday morning. In your inbox is a questionnaire from your biggest customer, or a new tender: "Do you have a climate transition plan? Are your reduction targets science-based?" You have two weeks to respond.

Sounds familiar? You're not alone. The climate transition plan is rapidly becoming the standard, and there are two main reasons for that.

The first is European regulation. On July 3, 2026, the European Commission adopted the simplified European Sustainability Reporting Standards (ESRS), applying from FY 2027. These disclosure requirements, which are part of the CSRD legislation, are mandatory for companies with more than 1,000 employees and a net turnover of more than €450 million. In the climate standard ESRS E1, the transition plan takes center stage, with targets aligned with 1.5°C and a pathway to net zero. This remains in place even after the simplifications of the Omnibus package.

If you don't fall under the CSRD yourself, you will often encounter it through the value chain, as larger companies and banks increasingly ask their suppliers for sustainability data.

The second reason is sustainability certifications such as B Corp, EcoVadis, and the CO2 Performance Ladder (CO2-Prestatieladder). In the new handbook (4.0) of the CO2 Performance Ladder, the climate transition plan is at the core: you need a plan that describes how the organization will become climate neutral for Scope 1, 2 and 3 by 2050 at the latest. Even at level 1, you are required to draw up an action plan for emission reduction.

The good news: if you've followed our previous blogs, you've already laid the foundation. In climate blog 1, we showed why climate change is an urgent issue, including for your organization. In climate blog 2, we shared five practical tips for a climate resilience analysis. Now we take the next step: how do you create a realistic reduction plan?

What is a climate transition plan (and what is it not)?
A climate transition plan (CTP) is a business plan for reducing your greenhouse gas emissions. It describes where you are now, where you want to go and how you'll get there. A good plan consists of five building blocks:

• Starting point: your carbon footprint across Scope 1 (direct emissions), Scope 2 (purchased energy) and Scope 3 (the value chain).
• Targets: reduction targets for the short, medium and long term, with a pathway to net zero by 2050 at the latest.
• Measures: the concrete actions that will get you to those targets, from quick wins to structural investments.
• Governance: who is responsible, how do you monitor progress and how do you adjust course?
• Financing: which investments are needed and how do they fit into your budget?

What a climate transition plan is not: a box-ticking exercise, a plan that relies mainly on carbon offsetting, or a one-off effort. It's a living plan that you review every year.

Start with what you already know
A climate transition plan doesn't start from zero, but from a baseline measurement: your organization's greenhouse gas emissions in a chosen base year, broken down into Scope 1, 2 and 3. These figures are the starting point against which you set all your targets. At the same time, they show where your largest emission sources are, where feasible reduction opportunities lie and where your organization has real influence.

Have you carried out the climate resilience analysis from blog 2? Then you also know which climate risks and opportunities weigh most heavily for your organization. Put the two side by side: the baseline tells you where your emissions are, the climate resilience analysis tells you where you're vulnerable. Measures that score on both deserve priority.

An example: does your baseline show that energy use causes a large share of your emissions, and did your climate resilience analysis show that you're vulnerable to rising energy prices? Then energy savings and electrification are not only good for your carbon targets, they also reduce your business risk. That way, your baseline, your risk analysis and your transition plan reinforce each other.

Setting realistic targets: two routes
A good target is ambitious enough to be credible and realistic enough to remain achievable. There are a few basic choices you always make:

• Absolute or relative? An absolute target (for example, 40% lower emissions compared to the base year, regardless of revenue) is the strongest option. An intensity target (emissions per euro of revenue or per product) can be a useful addition if your organization is growing rapidly.
• Base year: choose a recent, representative year for which you have reliable data.
• Time horizon: an interim target toward 2030 and a long-term target toward net zero by 2050 at the latest.
  Then comes the big question: do you have your targets validated by SBTi, or do you set them yourself?

Route A: with SBTi
The Science Based Targets initiative is the international standard for science-based climate targets. SBTi validation provides external credibility and is now required by many large customers and investors.

For smaller organizations, there is a simplified and less expensive route. The SME route works with predefined ambition levels: you make a choice based on your ambition and base year. For example, a 42 % reduction in Scope 1 and 2 by 2030 compared to 2020. In the SME route, a quantitative Scope 3 target is not mandatory, but a commitment to measure and reduce your Scope 3 emissions is.

Mind the timing: SBTi published a new version of its standard in June 2026.

• Throughout 2026, version 1.3.1 remains in effect for validation.
• From the first quarter of 2027, you can choose between version 1.3.1 and 2.0, and from February 1, 2028, all new targets must comply with version 2.0.

Route B: without SBTi
Not every organization is ready for, or needs, formal validation. In that case, you can set targets yourself using the same scientific logic. A widely used rule of thumb for 1.5°C (in line with the Paris Agreement) is an absolute reduction of at least 4.2% per year for Scope 1 and 2. For Scope 3, a commonly used minimum is 2.5% per year, which is consistent with warming well below 2°C. A Scope 3 target is especially important if Scope 3 makes up at least 40% of your total emissions. In that case, target at least two-thirds of your Scope 3 emissions, so you can focus on the largest sources. This keeps your targets comparable in substance, without a validation process.

This route is faster and more flexible, and a great first step: many organizations start here and have their targets validated later, once their data is in order.

From target to action
A target without a route is just a wish. So translate your targets into a roadmap across three horizons:

• Now to 1 year (quick wins): switching to green electricity, energy savings, behavioral measures and a better mobility policy.
• 1 to 5 years (structural investments): electrification of the vehicle fleet and equipment, heat pumps, solar panels, sustainable procurement policy.
• 5 years and beyond (value chain and innovation): collaboration with suppliers and customers, new production processes, circular business models.

Link each measure to an expected CO2 reduction, an owner, a timeline and an investment. That way you can see right away whether the sum of your measures meets your target, and where the gap is.

Check your progress
Can you answer these five questions? Then you're well on your way.

• Do we know our emissions in Scope 1, 2 and 3?
• Do we have a concrete reduction target for 2030?
• Do we know which measures contribute most to that target?
• Does every measure have an owner and a budget?
• How and when do we measure our progress?

In conclusion
A climate transition plan sets out how your organization will reduce its emissions, with targets that are both ambitious and realistic.  It lets you feed several birds with one scone: A well-founded climate transition plan is the basis for your ESRS reporting, a requirement for B Corp or the CO2 Performance Ladder, and the answer to the questions that customers, contracting authorities, and financiers are asking more and more often; whether you choose SBTi validation or first set science-based targets yourself.

In the next blog, we'll take a closer look at emissions, with a recap of Scope 1, 2 and 3 and practical tips.

Want to discuss your climate transition plan, or does your organization need support? Feel free to get in touch.

Author: Pedram Keshmiri | pedram@toscatribe.nl