Corporate Climate Commitments: SBTi, RE100 & GHG Protocol
Corporate climate commitments have transformed from voluntary pledges into strategic business imperatives. Organizations worldwide are adopting frameworks like the Science Based Targets initiative (SBTi), RE100, and the GHG Protocol to demonstrate environmental leadership, meet stakeholder expectations, and prepare for increasingly stringent regulations. These frameworks provide the credibility and structure that generic sustainability statements lack.
The interconnected nature of these commitments creates both opportunity and complexity. GHG Protocol establishes the measurement foundation that enables accurate emissions tracking, SBTi validates that reduction targets align with climate science, and RE100 provides a pathway to 100% renewable electricity. Together, they form a comprehensive approach to corporate climate action that investors, customers, and regulators increasingly expect.
Achieving meaningful progress across these frameworks requires granular, continuous energy data that most organizations struggle to obtain. Real-time facility monitoring transforms climate commitments from aspirational targets into measurable outcomes, providing the visibility needed to track emissions, identify reduction opportunities, and demonstrate progress to stakeholders.
Understanding Corporate Climate Frameworks
Corporate climate commitments have evolved from vague sustainability pledges into rigorous, science-based frameworks that require precise measurement, third-party validation, and transparent reporting. The convergence of investor pressure, regulatory requirements, and stakeholder expectations has made these commitments essential for organizations seeking to maintain competitiveness and access to capital.
Three frameworks dominate the corporate climate landscape: the GHG Protocol provides the accounting methodology, SBTi validates that targets align with limiting warming to 1.5°C, and RE100 focuses specifically on transitioning to 100% renewable electricity. These frameworks are interrelated, with CDP serving as the primary reporting platform for annual progress disclosure across all three initiatives.
Framework Alignment at a Glance
GHG Protocol establishes the emissions calculation methodology that both SBTi and RE100 require. SBTi uses GHG Protocol Scope 1, 2, and 3 definitions for target-setting, while RE100 specifically addresses Scope 2 electricity emissions through renewable energy procurement.
GHG Protocol: The Foundation of Emissions Accounting
The Greenhouse Gas Protocol, developed by the World Resources Institute and World Business Council for Sustainable Development, provides the international standard for corporate greenhouse gas accounting. First published in 2001 and updated through 2015, the GHG Protocol forms the foundation for virtually all corporate emissions reporting programs globally, with 92% of Fortune 500 companies using its standards.
Scope 1: Direct Emissions
Scope 1 encompasses emissions from sources owned or controlled by the organization. This includes stationary combustion from boilers and furnaces, mobile combustion from fleet vehicles, process emissions from manufacturing, and fugitive emissions such as refrigerant leaks. Accurate Scope 1 measurement requires detailed tracking of fuel consumption and equipment operation across all facilities.
Scope 2: Indirect Energy Emissions
Scope 2 covers indirect emissions from purchased electricity, steam, heat, and cooling. The GHG Protocol Scope 2 Guidance requires organizations to report using both location-based (grid average emission factors) and market-based (contractual instruments like RECs and PPAs) accounting methods. This dual reporting provides transparency about both physical grid emissions and renewable energy procurement efforts.
Scope 3: Value Chain Emissions
Scope 3 includes all other indirect emissions across 15 categories spanning upstream and downstream activities. Categories range from purchased goods and services to business travel, employee commuting, and downstream product use. While Scope 3 often represents the largest portion of corporate emissions, facility-level monitoring provides the accurate Scope 1 and 2 foundation that makes Scope 3 estimation more reliable.
The 15 Scope 3 categories include upstream emissions from purchased goods and services, capital goods, fuel and energy-related activities not included in Scope 1 or 2, upstream transportation, waste generated in operations, business travel, and employee commuting. Downstream categories cover transportation and distribution, processing of sold products, use of sold products, end-of-life treatment, leased assets, franchises, and investments. Understanding which categories are material for your organization helps prioritize data collection and reduction efforts.
Five GHG Protocol Accounting Principles
Relevance: Appropriately reflect the company’s actual GHG emissions. Completeness: Account for all emission sources within the defined boundary. Consistency: Enable meaningful comparisons over time. Transparency: Address all relevant issues factually. Accuracy: Reduce uncertainties as much as practically possible.
Science Based Targets Initiative (SBTi)
The Science Based Targets initiative validates that corporate emissions reduction targets align with the latest climate science. Founded in 2015 as a partnership between CDP, the UN Global Compact, World Resources Institute, and WWF, SBTi has become the definitive standard for corporate climate targets. Over 7,000 companies now have validated science-based targets, representing a commitment to reducing emissions in line with limiting global warming to 1.5°C.
Near-Term Targets
Near-term targets cover a 5-10 year timeframe and require approximately 4.2% annual linear reduction for 1.5°C alignment or 2.5% for well-below 2°C alignment. All companies must set Scope 1 and 2 targets, with Scope 3 targets required when value chain emissions exceed 40% of total emissions. These targets provide the immediate action framework that demonstrates genuine commitment to emissions reduction.
Net-Zero Targets
Long-term net-zero targets require 90% or greater absolute reduction from the base year by 2050 or sooner, with neutralization of residual emissions through permanent carbon removal. The Corporate Net-Zero Standard establishes rigorous requirements that distinguish genuine decarbonization from offset-dependent approaches.
Buildings Sector Criteria
Published in August 2024 with Version 1.1 in June 2025, the SBTi Buildings Criteria became mandatory from February 28, 2025 for companies where building-related emissions exceed 20% of total emissions. The criteria apply to developers, owner-occupiers, owner-lessors, property managers, and financial institutions with real estate exposure. Requirements include regional decarbonization pathways developed in collaboration with CRREM, upfront embodied carbon targets for new construction, retrofit requirements for existing buildings, and commitments to phase out new fossil fuel installations by 2025.
SBTi Validation Process
The five-step process includes: (1) Commit by submitting a commitment letter, (2) Develop targets using SBTi tools and criteria, (3) Submit targets through SBTi Services for review, (4) Validate through third-party assessment, and (5) Communicate progress publicly through CDP annual disclosure.
RE100: The Path to 100% Renewable Electricity
RE100 is the global corporate renewable energy initiative led by Climate Group in partnership with CDP. Launched in 2014, RE100 brings together influential businesses committed to 100% renewable electricity. With 446 member companies as of December 2025, representing annual electricity demand exceeding 500 TWh (more than South Korea’s entire consumption), RE100 membership demonstrates leadership in the transition to clean energy.
Membership Requirements
RE100 requires a public commitment to 100% renewable electricity by 2050 at the latest, covering all global operations, countries, and subsidiaries under operational control. Members must typically demonstrate significant influence, usually 100 GWh or more annual consumption, though exceptions exist for Fortune 1000 companies or those with strategic influence. Interim milestones now expect 60% renewable by 2030 and 90% by 2040.
Renewable Energy Procurement Options
RE100 members can achieve their targets through multiple procurement pathways: on-site generation (solar, wind), off-site power purchase agreements (physical and virtual PPAs), utility green tariff programs, and unbundled Renewable Energy Certificates (RECs). The choice depends on market availability, cost considerations, and additionality preferences. Regardless of procurement method, accurate consumption data is essential for matching renewable energy purchases to actual electricity use.
On-site generation provides the most direct path to renewable electricity, with rooftop solar and ground-mounted arrays becoming increasingly cost-effective for warehouse facilities and retail locations with suitable roof space. Power purchase agreements offer long-term price certainty and support new renewable project development, while utility green tariffs provide a simpler path for organizations seeking renewable electricity without the complexity of direct procurement negotiations.
Current RE100 Progress
RE100 members currently source approximately 45% of their electricity from renewables on average. Operations span 175 markets across 130 countries, demonstrating that 100% renewable electricity is achievable even for organizations with complex global footprints.
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5 Ways Energy Monitoring Accelerates Climate Commitments
Continuous facility monitoring transforms corporate climate commitments from aspirational goals into measurable outcomes. Real-time energy data provides the foundation for accurate emissions calculations, target tracking, and stakeholder reporting across GHG Protocol, SBTi, and RE100 frameworks.
1. Precise GHG Protocol Scope 1 & 2 Calculations
Accurate emissions accounting requires granular energy consumption data. Real-time monitoring of electricity, natural gas, and fuel usage enables precise Scope 1 and 2 calculations that meet GHG Protocol accuracy requirements. Submetering capabilities allow organizations to identify emission sources at the equipment level, supporting both boundary setting and targeted reduction initiatives.
2. SBTi Progress Tracking and Validation Support
Science-based targets require annual progress reporting through CDP. Continuous monitoring provides the documented emissions trajectory needed to demonstrate progress toward 4.2% annual reductions. For organizations subject to SBTi Buildings Criteria, facility-level data supports compliance with regional decarbonization pathways and verification during validation audits.
3. RE100 Consumption Matching
RE100 progress requires matching renewable energy procurement to actual electricity consumption. Real-time monitoring provides the consumption baseline needed to size renewable energy purchases accurately, whether through PPAs, utility green tariffs, or REC procurement. Interval data supports emerging 24/7 carbon-free energy matching requirements that some organizations are adopting voluntarily.
4. Reduction Opportunity Identification
Achieving ambitious climate targets requires identifying and eliminating energy waste. Continuous monitoring reveals patterns in consumption that indicate efficiency opportunities, from demand response potential to equipment optimization. These operational improvements often deliver the cost savings that fund renewable energy procurement and deeper decarbonization investments.
5. Stakeholder Reporting Credibility
Investors, customers, and regulators increasingly scrutinize corporate climate claims. Audit-ready data from continuous monitoring systems provides the documentation needed for CDP responses, investor inquiries, and potential third-party assurance requirements. This credibility becomes especially important as climate disclosure regulations expand globally.
Monitoring dashboards provide the granular consumption data needed for accurate GHG Protocol calculations and climate commitment progress tracking
Framework Integration and Compliance Considerations
Corporate climate frameworks increasingly overlap with regulatory requirements, creating both compliance obligations and efficiency opportunities. Organizations that build robust energy data infrastructure for voluntary commitments often find themselves better positioned for mandatory disclosure requirements as regulations expand.
CDP as the Central Reporting Platform
CDP serves as the primary disclosure platform for SBTi progress reporting and RE100 membership tracking. The annual CDP Climate Change questionnaire collects Scope 1, 2, and 3 emissions data, climate targets, governance practices, and risk management approaches. Companies with validated SBTi targets and strong emissions data typically achieve higher CDP scores, with A-level scores requiring third-party verification and demonstrated progress on science-based targets.
Regulatory Alignment
Voluntary climate commitments often align with emerging regulatory requirements. California’s SB 253 requires climate-related financial risk disclosures for large companies doing business in the state, while SB 261 mandates Scope 1, 2, and 3 emissions reporting. The EPA’s Center for Corporate Climate Leadership provides resources for organizations navigating both voluntary and mandatory disclosure frameworks.
Industry-Specific Considerations
Different industries face varying requirements within these frameworks. Healthcare facilities must balance energy efficiency with patient care requirements. Manufacturing operations often have significant Scope 1 emissions from process heat and on-site combustion. Commercial real estate portfolios must navigate SBTi Buildings Criteria across diverse property types and tenant relationships.
Data centers face unique challenges with high electricity intensity and 24/7 operations driving RE100 procurement strategies toward baseload renewable sources. Restaurant chains and hotel portfolios must aggregate emissions across hundreds of locations while managing franchise and tenant relationships. Educational institutions increasingly adopt climate commitments to align with stakeholder expectations and demonstrate environmental leadership to students and communities.
Framework Data Requirements Summary
GHG Protocol: Electricity, natural gas, fuel consumption by source. SBTi: Baseline year emissions, annual progress tracking, building-level data for sector criteria. RE100: Total electricity consumption, renewable electricity procurement documentation. CDP: All above plus governance, risk management, and strategy disclosure.
Building Your Corporate Climate Strategy
Developing an effective corporate climate strategy requires understanding how GHG Protocol, SBTi, and RE100 work together to create a comprehensive approach to emissions reduction and renewable energy transition. The sequence typically begins with GHG Protocol methodology for baseline measurement, followed by SBTi target validation, with RE100 membership addressing the renewable electricity component of broader decarbonization goals.
Step 1: Establish Your Emissions Baseline
GHG Protocol provides the methodology for establishing an accurate emissions baseline. This requires comprehensive energy consumption data across all facilities, including electricity, natural gas, fuel oil, and other energy sources. ISO 50001 energy management systems provide a complementary framework for establishing the data collection and management processes that support accurate baseline measurement.
Step 2: Set Science-Based Targets
With a verified baseline, organizations can develop targets aligned with SBTi criteria. Near-term targets (5-10 years) demonstrate immediate action commitment, while net-zero targets establish long-term decarbonization trajectory. The SBTi provides sector-specific guidance, including Buildings Criteria for organizations with significant real estate emissions and FLAG guidance for those with land use impacts.
Step 3: Address Renewable Electricity
RE100 membership provides a structured approach to transitioning to 100% renewable electricity. For organizations where electricity represents a significant portion of emissions, RE100 commitment can address a substantial portion of SBTi Scope 2 targets. Monitoring systems help size renewable energy procurement accurately and track progress toward interim milestones.
Step 4: Implement and Track
Continuous monitoring enables organizations to track progress toward targets, identify reduction opportunities, and prepare for annual CDP disclosure. ENERGY STAR Portfolio Manager integration can simplify benchmarking, while comprehensive facility monitoring provides the detailed data needed for operational improvements and stakeholder reporting.
Implementation success depends on establishing clear data governance practices, defining responsibilities for emissions tracking and reporting, and integrating climate metrics into operational decision-making. Organizations that embed climate performance into existing management systems, such as ASHRAE 90.1 compliance programs or commissioning processes, achieve more consistent progress than those treating climate as a separate initiative.
The Monitoring Advantage
Organizations with comprehensive energy monitoring systems consistently outperform peers in climate commitment achievement. Real-time data enables faster identification of reduction opportunities, more accurate target-setting, and credible stakeholder reporting. The investment in monitoring infrastructure typically delivers returns through both operational savings and enhanced access to sustainability-linked financing.
Frequently Asked Questions
What is the difference between GHG Protocol, SBTi, and RE100?
GHG Protocol provides the accounting methodology for measuring greenhouse gas emissions across Scope 1, 2, and 3 categories. SBTi validates that corporate emissions reduction targets align with climate science, specifically the goal of limiting warming to 1.5°C. RE100 focuses specifically on transitioning to 100% renewable electricity.
These frameworks complement each other: GHG Protocol provides the measurement foundation, SBTi validates the ambition of targets, and RE100 addresses the renewable electricity component of decarbonization. Many organizations participate in all three as part of a comprehensive climate strategy.
How long does SBTi target validation take?
The SBTi validation process typically takes 6-12 months from initial commitment to published validation. Organizations must first submit a commitment letter, then develop targets using SBTi criteria and tools, submit for validation review, address any feedback, and finally receive public validation.
The timeline depends on target complexity, data readiness, and current SBTi review queue. Organizations with comprehensive energy monitoring and accurate emissions baselines typically complete the process more efficiently than those building data infrastructure during target development.
What are the minimum requirements for RE100 membership?
RE100 requires a public commitment to 100% renewable electricity by 2050 at the latest, covering all global operations under operational control. Members must typically demonstrate significant influence through annual electricity consumption of 100 GWh or more, though exceptions exist for Fortune 1000 companies.
Interim milestones now expect 60% renewable by 2030 and 90% by 2040. Members must report progress annually through CDP and demonstrate credible procurement strategies using acceptable sources including on-site generation, PPAs, utility green tariffs, and renewable energy certificates.
How does energy monitoring support GHG Protocol compliance?
GHG Protocol requires accurate, consistent energy consumption data for emissions calculations. Continuous monitoring provides real-time tracking of electricity, natural gas, and fuel consumption at the facility and equipment level, enabling precise Scope 1 and 2 calculations that meet the Protocol’s accuracy principle.
Monitoring also supports the consistency principle by enabling meaningful year-over-year comparisons and the transparency principle by providing audit-ready documentation. Submetering capabilities help organizations set appropriate organizational boundaries and track emissions by source category.
What is the SBTi Buildings Criteria?
The SBTi Buildings Criteria, published in August 2024 with Version 1.1 in June 2025, establishes specific requirements for organizations where building-related emissions exceed 20% of total emissions. The criteria became mandatory from February 28, 2025 for in-scope companies including developers, owners, property managers, and financial institutions.
Requirements include regional decarbonization pathways developed with CRREM, upfront embodied carbon targets for new construction, retrofit requirements for existing buildings, and commitments to phase out new fossil fuel installations. Facility-level energy monitoring provides the in-use operational emissions data needed for compliance.
How do these frameworks relate to CDP disclosure?
CDP serves as the primary reporting platform for corporate climate disclosure and tracks progress on both SBTi targets and RE100 commitments. The annual CDP Climate Change questionnaire collects emissions data, climate targets, governance practices, and transition plans that demonstrate progress on voluntary commitments.
Companies with validated SBTi targets receive higher CDP scores, and RE100 progress is tracked through CDP reporting. The 2025 CDP disclosure cycle opens in May with a September deadline. Strong emissions data from continuous monitoring supports higher scoring across leadership, management, and awareness categories.
What annual reduction rate do SBTi targets require?
SBTi near-term targets aligned with 1.5°C require approximately 4.2% annual linear reduction in emissions, while well-below 2°C alignment requires approximately 2.5% annual reduction. These reductions apply to Scope 1 and 2 emissions for all companies, with Scope 3 targets required when value chain emissions exceed 40% of total.
Net-zero targets require 90% or greater absolute reduction by 2050, with remaining emissions addressed through permanent carbon removal. Continuous monitoring enables organizations to track their reduction trajectory, identify when they are falling behind target, and take corrective action before annual reporting deadlines.
Can small companies participate in these frameworks?
Yes, though with some variations. SBTi accepts companies of all sizes and has streamlined pathways for SMEs. GHG Protocol methodologies can be applied by any organization regardless of size. RE100 typically requires 100 GWh annual consumption for full membership, but smaller companies can adopt similar commitments independently.
For smaller organizations, the key challenge is often data collection and management capacity rather than framework eligibility. Comprehensive monitoring platforms designed for commercial buildings can provide enterprise-grade emissions tracking without requiring dedicated sustainability staff or complex IT infrastructure.
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