SBTi Update SME Definition

From 1 January 2024, SMEs wishing to set science-based targets under the SBTi, must meet a new definition of SME. 

The new definition forms part of the SBTi's project to strengthen compliance and increase ambition in the private sector - directing more companies to use the standard route for target validation. 

An SME under the new definition must:

• Have <10,000 tCO2e across scope 1 and location-based scope 2 emissions
• Not own or control maritime transport vessels
• Not own or control power generation assets
• Not be classified in the Financial Institution (FI) Sector or Oil & Gas (O&G) Sector
• Not be a subsidiary of a parent company whose combined businesses fall into the standard validation route.

It must also satisfy two or more of the following:

• Employ <250 employees*
• Turnover of <€40 million*
• Total assets of <€20 million*
• Not be in a mandatory Forest, Land and Agriculture (FLAG) sector

*As per the European Union's Corporate Sustainability Reporting Directive SME criteria.

Have questions about the criteria change or setting your SME science-based targets? Get in touch with our specialist team today and put your business on the track to net zero.