November 7, 2023

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.