Climate Change Playbook
Resources and expert guidance to support our suppliers through their sustainability journey.This platform currently focuses on decarbonization.
Start
HOME SQUARE
CONTENT
Find the right resources for your journey
Choose the section that best matches your current stage to access tailored tools and guidance to reduce your emissions.
Measure
Disclose
Commit
Take action
Monitor
Start measuring your emissions
Disclose your emissions through the CDP platform
Set science-based emissions reduction targets
Develop your formal decarbonization roadmap
Monitor and report your progress regularly
While you are here...
Read more
Read more
Read more
Learn more about SGS and its ESG strategy
SGS's sustainability services: IMPACT NOW
Make your climate business case
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Make your climate business case
Climate action is no longer a "nice to have", it is a fundamental requirement for doing business in a rapidly changing world. Companies that lead on climate action reduce risks, cut costs, attract investment, win customers, retain talent and unlock new growth opportunities.
Key steps to start taking climate action
- Identify decision-makers
- Benchmark against industry standards to stay competitive
- Assess risks and opportunities to stay resilient and enable long-term growth
- Demonstrate cost savings and efficiency gains
- Consider expectations to maintain investors, clients and employees engagement
- Align with business strategy
- Set a clear and actionable plan
- Tailor communication to your audience
- Establish robust governance and reporting structure that involves senior management
- Promote internal collaboration and engagement
- Educate and raise awareness
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Measure
Resources and materials
A company’s carbon footprint is the total greenhouse gas (GHG) emissions generated directly or indirectly by its activities. From fuel used in your offices to employees commuting, everything counts. Understanding and managing a company’s carbon footprint begins with GHG emissions accounting, which provides the foundation for any decarbonization effort.
How tomeasure
GHGProtocol
GHGscopes
Third-party verification
Additional resources
ISO 14064
Learn about the benefits
- Cost saving and operational efficiency
- Improved brand image and investor confidence
- Better risk management
- Compliance with regulations
- Competitive advantage
- Long-term success
SGS's approach
SGS carbon footprint
Relevant documents
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
How is the carbon footprint measured?
Read more
Emission factor databases
The process of calculating GHG emissions (CO2 emissions or simply emissions), is relatively straightforward, though not always simple. In essence, emissions are determined by multiplying a company’s activity data by an emission factor:
Activity data
Emission factor
GHG emissions
- IPCC Emission Factor Database (EFDB)
- International Energy Agency (IEA)
- Department for Environment, Food & Rural Affairs (DEFRA)
- EPA’s AP-42 Compilation of Air Pollutant Emission Factors (Stationary Sources)
How to choose the right emission factor
- U.S. EPA Supply Chain Greenhouse Gas Emission Factors
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
GHG Protocol
The GHG Protocol is the most widely used framework for measuring and managing greenhouse gas emissions. It helps companies, governments, and other organizations track and report their emissions in a consistent and credible way.
The GHG Protocol Corporate Accounting and Reporting Standard
Other GHG Protocol Standards & Guidance
EmissionCalculation Tools
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
GHG Scopes
The GHG Protocol Corporate Standard establishes a structured framework for measuring GHG emissions by categorizing them into three scopes based on their source.
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
SGS's carbon footprint
The TIC industry is not a carbon-intensive sector, since it does not comprise manufacturing processes and facilities, thus most of its emissions are indirect. We measure our carbon footprint following the GHG Protocol Corporate Accounting and Reporting Standard. It includes emissions associated to both owned and leased assets over which we have financial control.
Scope 2
Scope 1
Scope 3
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Disclose
Resources and materials
Disclosing your own emissions is crucial to allow your clients to accurately measure their Scope 3 emissions, which often make up the largest portion of a company's carbon footprint.
The best way for companies to disclose emissions is through the Carbon Disclosure Project (CDP), a framework that ensures a transparent and standardized approach.
How to report in CDP
CDP
Additional resources
SGS's approach
Our CDP report
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
How to report in CDP
The reporting process involves several key steps:
Elegibility for a simplified questionnaire
Scoring
Submission
Data collection
Schedule and cost
Accessing the questionnaire
Registration
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Commit
Resources and materials
Measuring emissions is the foundation of any sustainability strategy, but setting clear targets drives real progress. Effective targets are specific, science-based and achievable.
An increasing number of voluntary GHG programs are emerging to help companies set, track and achieve emissions targets, while building reporting capacity, recognizing early action and offering public credibility. SGS has set SBTi-approved targets and encourages suppliers to follow the same.
Target setting
The SBTi
Additional resources
Benefits of target setting
- Demonstrate leadership and credibility
- Gain a competitive advantage
- Achieve cost savings and operational efficiency
- Reduce exposure to climate risks and future proof your company
- Build trust with stakeholders and attract investment
- Unlock innovation and provide new products and services
- Attract and retain talent
SGS's approach
Our SBTi targets
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
The Science Based Targets initiative (SBTi)
The Science Based Targets initiative (SBTi) is an organization that drives climate action by providing companies with a clear pathway to set emissions reduction targets aligned with climate science. The SBTi develops standards, tools and guidance that enable companies to set emissions reductions to reach net-zero emissions by 2050 at the latest.
1. The Net-Zero Corporate Standard
2. Who can use the Net-Zero Standard
3. The Corporate Near-Term Criteria
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Target-setting
The steps for setting science-based targets are:
Announce your targets
Review your targets
Understand the criteria
Set your targets
Select your methodology
Embed in strategy
Submit for validation
Make the commitment
Important! Companies must submit their targets for validation within 24 months of making their initial commitments, however it is recommended by the SBTi to submit them within 12 to 15 months after committing. This allows a buffer time for modifications prior to the commitment period deadline.
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
SGS' science-based targets
In 2018, we became the first professional services company in Switzerland to join the SBTi, committing to reduce GHG emissions based on targets determined by climate science.
In 2022, we became the first TIC company to receive approval for a net-zero target. Aligned with the 1.5ºC objective from the Paris Agreement, we have committed to reach net-zero GHG emissions across our entire value chain by 2050. To achieve this objective, we have approved near- and long-term science-based emissions reduction targets with the SBTi:
Near-term targets
Long-term targets
- We commit to reduce absolute scope 1 and scope 2 GHG emissions by 46.2% by 2030 from a 2019base year.
- We also commit to reduce absolute scope 3 GHG emissions by 28% by 2030 from a 2019 base year.
- We commit to reduce absolute scope 1, 2 and 3 GHG emissions by 90% by 2050 from a 2019 base year.
Our targets are included in our global sustainability strategy, the SA30. To learn more about the progress we have made toward our goals, you can visit our Integrated Report. For a comprehensive view of our decarbonization strategy, explore our Net-Zero Transition Plan.
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Take action
Resources and materials
While target setting provides a good strategic direction, progress can only be achieved through the implementation of concrete actions.
Possible actions
Hierarchy of measures
Learn about the benefits
- Gain a competitive advantage
- Reduce emissions and achieve cost savings as well as operational efficiency
- Reduce exposure to climate risks and future proof the company
- Build trust with stakeholders and attract investment
- Attract and retain talent
SGS's approach
Our NZTP
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Hierarchy of measures
Not all actions have the same impact or are equally effective. Companies should prioritize actions that address the root of the problem and leave actions that merely compensate emissions as the last resort.
Avoid
Most favoured option
Reduce
Replace
Remove
Offset
Least favoured option
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Possible actions
There are several effective actions that companies can take to reduce Scope 1, 2 and 3 emissions, each targeting different areas of operations to maximize impact.
EmissionCalculation Tools
Scope 2
Scope 1
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
SGS Net-Zero Transition Plan (NZTP)
Your efforts matter. Monitoring emissions is essential to track progress, stay accountable and ensure targets are met. Annual verification confirms accuracy, highlights progress and indicates when targets or data need adjustment. Together, we will stay on course toward net zero!
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Monitor
Track progress, stay aligned.
Your efforts matter. Monitoring emissions is essential to track progress, stay accountable and ensure targets are met. Annual verification confirms accuracy, highlights progress and signals when targets or data need amendments. Together we will stay on course toward net-zero!
Where we stand
Your progress, our progress
What we monitor
Keep growing together
How to choose the right emission factor
Choosing the right emission factor can be complex because they need to account for geography, the specific industry sector, the local electricity mix, etc. The most important emission factors databases are:
- IPCC Emission Factor Database (EFDB)
- International Energy Agency (IEA)
- Department for Environment, Food & Rural Affairs (DEFRA)
- EPA’s AP-42 Compilation of Air Pollutant Emission Factors (Stationary Sources)
- U.S. EPA Supply Chain Greenhouse Gas Emission Factors
- Life Cycle Databases from third parties
What we monitor
Most of our carbon emissions come from our indirect Scope 3 emissions, mostly related to our purchases. This means that, in order to achieve this objective, we rely on our suppliers to join us on this journey by measuring and reporting their carbon footprint, setting ambitious targets and publicly report on their progress.
Scope 3
Indirect emissions from activities not owned or controlled by the company but related to its operations. This often represents the largest portion of a company’s footprint. These emissions can occur upstream (from the production of goods and services that the company purchases or uses) or downstream (from the use or disposal of the company’s products or services).
Emission factor databases
- IPCC Emission Factor Database (EFDB)
- International Energy Agency (IEA)
- Department for Environment, Food & Rural Affairs (DEFRA)
- EPA’s AP-42 Compilation of Air Pollutant Emission Factors (Stationary Sources)
- U.S. EPA Supply Chain Greenhouse Gas Emission Factors
Who can use the Net-Zero Standard
This standard provides cross-sector methods that companies in all sectors, except fossil fuels, can use to set science-based targets. However, the SBTi is also developing sector-specific guidance for companies in certain heavy-emitting industries. Tailored to the needs and context of each industry, these resources enable companies to develop ambitious and achievable science-based targets aligned with 1.5°C.
Sector-specific standards
The Corporate Near-Term Criteria
Furthermore, the SBTi also provides guidance for the Corporate Near-Term Criteria, which sets the requirements for companies to establish short-term targets that align with the 1.5°C pathway. It is often used by companies not yet ready to commit to net-zero, or as the first step in the process. If approved, the SBTi will recognize a science-based target but no net-zero yet.
The Corporate Near-Term Criteria
Difference between a near-term and a net-zero target
Additional resources
GHG Protocol E-Learning opportunities
GHG Protocol events and news
Your progress, our progress
We are impressed by the action you’re taking by tracking emissions, setting goals and reporting results. Your efforts not only contribute to the success of our shared sustainability objectives, but also serve as a strong example for others in the industry to follow. Well done!
Scope 1
Direct emissions from sources owned or controlled by the company, including: fuel combustion (e.g., natural gas in company facilities), company-owned vehicles (e.g., fleet cars, trucks) or industrial processes (e.g., chemical manufacturing emissions).
The Corporate Standard
The GHG Protocol provides free tools to help calculate emissions. These include:
- Cross-sector tools (for general use)
- Sector-specific tools (for particular industries)
These tools guide users step-by-step and include electronic worksheets.
Calculation tools and guidance
Additional resources
SBTi glossary
SBTi latest press releases, blog posts, events and newsletter
Keep growing together
As we move toward a low-carbon future, we see great potential to strengthen our collaboration with you. Your progress in reducing emissions, along with our shared climate goals, puts us in a strong position to explore future opportunities together. We are keen to discuss partnerships that could help us both move faster toward our goals. By working together, we can create more value and support the global shift to a net-zero economy. We look forward to exploring these ideas with you and are happy to talk further anytime.
Adittional resources
CDP events and past webinars
CDP reporter services: get tailored support
Find an Accredited Solutions Provider (ASP)
CDP Frequently Asked Questions
Schedule and cost
The CDP follows a structured annual schedule for disclosure, which may vary each year. Make sure you understand the timelines before preparing your response.
- Release of updated guidance
- Opening of the Online Response System (ORS)
- Submission deadline
- Evaluation and scoring
- Publication of results
The CDP’s reporting fees are available in their FAQs, within the second section ‘Disclosure admin fee’:
FAQs
The GHG Protocol Corporate Accounting and Reporting Standard
The GHG Protocol Corporate Standard (first published in 2001) is the main guide for measuring emissions at the company level. It explains how to:
- Define what parts of your business to include (boundaries)
- Identify and classify emissions (Scope 1, 2, and 3)
- Collect data and report results accurately
- It also offers best practices for reporting and verifying emissions data.
GHG Protocol Corporate Accounting and Reporting Standard
Third-party verification
Third-party verification provides both external credibility and internal insights. Verification must be completed by an accredited third party provider according to recognized standards.
Reliable emissions data supports the setting of science-based targets, public recognition by climate ratings such as CDP, and better long-term decision-making.
Scope 3
Indirect emissions from activities not owned or controlled by the company but related to its operations. This often represents the largest portion of a company’s footprint. These emissions can occur upstream (from the production of goods and services that the company purchases or uses) or downstream (from the use or disposal of the company’s products or services).
Other key frameworks
The GHG Protocol has developed several other important standards, including:
- Scope 2 Guidance
- Corporate Value Chain (Scope 3) Standard
- Project Accounting Standard
- Product Life Cycle Standard
- Policy and Action Standard
- Mitigation Goal Standard
Standards & guidance
Eligibility for a simplified questionnaire
For small and medium enterprises (SMEs), CDP offers a simplified questionnaire with fewer and simplified datapoints.
The conditions to be eligible for each version of the questionnaire are:
Scope 2
Indirect emissions from purchased electricity, steam, heating, and cooling consumed by the company. These emissions occur at the facility where the energy is generated, not at the point of use. Scope 2 emissions can be accounted by two methods:
- Market-based method, which uses supplier-specific emissions factors (e.g., renewable energy contracts).
- Location-based method, which uses average grid emission factors for the region.
The Net-Zero Corporate Standard
The Net-Zero Corporate Standard is the main standard followed by companies to set their net-zero targets. The standard is accompanied by the Net-Zero Standard Criteria, which includes all criteria that must be met for net-zero targets to be validated by the SBTi. This document also includes recommendations which are important for transparency and best practice but are not required.
The Net-Zero Corporate Standard
Recommendations and best practices
SGS CDP report
We have been reporting to CDP for several years, reinforcing our commitment to environmental transparency and helping our clients and stakeholders track their Scope 3 emissions. Our most recent score is available on our website.
Check our CDP score
ISO 14064
ISO 14064 serves as a critical framework for organizations aiming to manage their GHG emissions effectively. It supports compliance with both regulated and voluntary programs, such as emissions trading schemes and public reporting. The standard is designed to be compatible with other frameworks, such as the GHG Protocol, allowing for a unified approach to emissions reporting across different sectors and regions.
Understanding ISO 14064
The Corporate Standard
The GHG Protocol provides free tools to help calculate emissions. These include:
- Cross-sector tools (for general use)
- Sector-specific tools (for particular industries)
These tools guide users step-by-step and include electronic worksheets.
Calculation tools and guidance
The Carbon Disclosure Project (CDP)
CDP is a global non-profit that promotes environmental transparency by assisting companies, cities and governments in measuring and disclosing their environmental impact.
CDP scores companies based on the completeness and effectiveness of emissions reporting and climate strategy. A high score boosts corporate credibility, attracts ESG-focused investors and strengthens market positioning in an increasingly sustainability-driven economy.
CDP
Where we stand
SGS is proud to be the first in our industry to align with the 1.5ºC climate goal. We are working toward net-zero by 2050, and we can’t get there without you. Our targets, verified by the Science Based Targets initiative, guide us on a credible path to decarbonization.
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SGS is a leading professional services company that provides specialized Testing, Inspection and Certification (TIC) services across nearly every sector in over 100 countries. Our services add measurable value to business and society by ensuring products, processes, systems and services meet national and international standards and regulations.
At SGS, sustainability has been a core part of our business strategy for over a decade. Sustainability is one of our six business principles and the cornerstone on which all our activity rests. Our business principles are held to be fundamental, overarching beliefs and behaviors that guide our decisions and allow us to embody the SGS brand in everything we do.
Our journey began in 2008 with the launch of our first sustainability strategy, setting the foundation for our commitment to responsible business practices. This was followed by our first Sustainability Report in 2010, which enhanced transparency and accountability in our ESG performance. Over the years, we have continuously evolved our approach, culminating in the launch of Sustainability Ambitions 2030 [link] in 2021.
Sustainability Ambitions 2030 is fully embedded in our business strategy, Strategy 27: Accelerating Growth, Building Trust [link]. This strategic roadmap ensures that sustainability remains at the core of our operations while responding to key global challenges such as climate change, digital transformation and supply chain evolution. Together, these initiatives drive SGS’s mission to integrate sustainability into every aspect of our business.
Sustainability Ambitions 2030 is a comprehensive strategy designed to tackle ESG challenges across our entire value chain. This enables us to focus not only on the value we create in our direct operations and supply chain management, but also the value we enable through our services.
The 2030 strategy sets ambitious targets, aligning with the United Nations’ Sustainable Development Goals (SDGs) to deliver measurable contributions to global sustainability efforts. More specifically, to focus on those identified as most closely aligned with our business model. We have mapped them and established our priorities according to the areas where we can have a clear, positive, tangible and long-lasting impact.
The initiative and its targets are structured around three core pillars:
• Environment: The TIC industry is not a carbon-intensive sector, since it does not include manufacturing processes and facilities. However, we have committed to go even further, significantly reducing our emissions by 2030 and achieving net-zero emissions by 2050, as validated by the Science Based Targets initiative (SBTi)
• Social: With more than 99,500 employees in 115 countries, SGS is a people company, our knowledge is our greatest asset. As a people-based business, we strive to make a meaningful and positive impact on individuals - both within the organization and in the wider community, focusing on empowering equality, well-being and prosperity
• Governance: A strong governance structure ensures that sustainability remains at the heart of our activities, enabling long-term value through secure, fair, transparent and responsible business practices. Top management is actively involved in overseeing the delivery of our sustainability strategy. Recognizing the importance of leadership in driving sustainability, SGS has linked top management’s long-term incentive to sustainability performance and established a Sustainability Committee at Board level, ensuring governance and accountability at the highest level
The final goal of our strategy is to maximize the positive impact that our company generates on society or our value to society. To better understand how we create value and make better strategic decisions, we have developed our Impact Valuation Framework based on the International Integrated Reporting Framework. This methodology allows us to accurately quantify our contribution or impact on society and then make better-informed decisions and improve the quality of information available to investors.
Our ESG achievements have been widely recognized. We are ranked #1 in the Professional Services Industry in the S&P Global Corporate Sustainability Assessment and have been listed on the DJSI World and DJSI Europe for the 11th consecutive year. We were also ranked sixth on TIME’s list of the World’s Most Sustainable Companies.
Additional recognitions include an EcoVadis Gold Medal (top 6% of over 100,000 companies), AAA rating from MSCI for the third year running and approval of our 1.5ºC and net-zero targets by the Science Based Targets initiative—the first in our industry. We were rated as “low risk” by Sustainalytics, received a PRIME rating from ISS ESG and were listed in the FTSE4Good Index and the FTSE Diversity & Inclusion Index. Lastly, our integrated annual report was awarded third place for Value Reporting in the Swiss Annual Report Rating.
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Supplier Engagement Program
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Transcript
Climate Change Playbook
Resources and expert guidance to support our suppliers through their sustainability journey.This platform currently focuses on decarbonization.
Start
HOME SQUARE
CONTENT
Find the right resources for your journey
Choose the section that best matches your current stage to access tailored tools and guidance to reduce your emissions.
Measure
Disclose
Commit
Take action
Monitor
Start measuring your emissions
Disclose your emissions through the CDP platform
Set science-based emissions reduction targets
Develop your formal decarbonization roadmap
Monitor and report your progress regularly
While you are here...
Read more
Read more
Read more
Learn more about SGS and its ESG strategy
SGS's sustainability services: IMPACT NOW
Make your climate business case
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Make your climate business case
Climate action is no longer a "nice to have", it is a fundamental requirement for doing business in a rapidly changing world. Companies that lead on climate action reduce risks, cut costs, attract investment, win customers, retain talent and unlock new growth opportunities.
Key steps to start taking climate action
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Measure
Resources and materials
A company’s carbon footprint is the total greenhouse gas (GHG) emissions generated directly or indirectly by its activities. From fuel used in your offices to employees commuting, everything counts. Understanding and managing a company’s carbon footprint begins with GHG emissions accounting, which provides the foundation for any decarbonization effort.
How tomeasure
GHGProtocol
GHGscopes
Third-party verification
Additional resources
ISO 14064
Learn about the benefits
SGS's approach
SGS carbon footprint
Relevant documents
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
How is the carbon footprint measured?
Read more
Emission factor databases
The process of calculating GHG emissions (CO2 emissions or simply emissions), is relatively straightforward, though not always simple. In essence, emissions are determined by multiplying a company’s activity data by an emission factor:
Activity data
Emission factor
GHG emissions
How to choose the right emission factor
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
GHG Protocol
The GHG Protocol is the most widely used framework for measuring and managing greenhouse gas emissions. It helps companies, governments, and other organizations track and report their emissions in a consistent and credible way.
The GHG Protocol Corporate Accounting and Reporting Standard
Other GHG Protocol Standards & Guidance
EmissionCalculation Tools
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
GHG Scopes
The GHG Protocol Corporate Standard establishes a structured framework for measuring GHG emissions by categorizing them into three scopes based on their source.
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
SGS's carbon footprint
The TIC industry is not a carbon-intensive sector, since it does not comprise manufacturing processes and facilities, thus most of its emissions are indirect. We measure our carbon footprint following the GHG Protocol Corporate Accounting and Reporting Standard. It includes emissions associated to both owned and leased assets over which we have financial control.
Scope 2
Scope 1
Scope 3
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Disclose
Resources and materials
Disclosing your own emissions is crucial to allow your clients to accurately measure their Scope 3 emissions, which often make up the largest portion of a company's carbon footprint. The best way for companies to disclose emissions is through the Carbon Disclosure Project (CDP), a framework that ensures a transparent and standardized approach.
How to report in CDP
CDP
Additional resources
SGS's approach
Our CDP report
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
How to report in CDP
The reporting process involves several key steps:
Elegibility for a simplified questionnaire
Scoring
Submission
Data collection
Schedule and cost
Accessing the questionnaire
Registration
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Commit
Resources and materials
Measuring emissions is the foundation of any sustainability strategy, but setting clear targets drives real progress. Effective targets are specific, science-based and achievable. An increasing number of voluntary GHG programs are emerging to help companies set, track and achieve emissions targets, while building reporting capacity, recognizing early action and offering public credibility. SGS has set SBTi-approved targets and encourages suppliers to follow the same.
Target setting
The SBTi
Additional resources
Benefits of target setting
SGS's approach
Our SBTi targets
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
The Science Based Targets initiative (SBTi)
The Science Based Targets initiative (SBTi) is an organization that drives climate action by providing companies with a clear pathway to set emissions reduction targets aligned with climate science. The SBTi develops standards, tools and guidance that enable companies to set emissions reductions to reach net-zero emissions by 2050 at the latest.
1. The Net-Zero Corporate Standard
2. Who can use the Net-Zero Standard
3. The Corporate Near-Term Criteria
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Target-setting
The steps for setting science-based targets are:
Announce your targets
Review your targets
Understand the criteria
Set your targets
Select your methodology
Embed in strategy
Submit for validation
Make the commitment
Important! Companies must submit their targets for validation within 24 months of making their initial commitments, however it is recommended by the SBTi to submit them within 12 to 15 months after committing. This allows a buffer time for modifications prior to the commitment period deadline.
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
SGS' science-based targets
In 2018, we became the first professional services company in Switzerland to join the SBTi, committing to reduce GHG emissions based on targets determined by climate science. In 2022, we became the first TIC company to receive approval for a net-zero target. Aligned with the 1.5ºC objective from the Paris Agreement, we have committed to reach net-zero GHG emissions across our entire value chain by 2050. To achieve this objective, we have approved near- and long-term science-based emissions reduction targets with the SBTi:
Near-term targets
Long-term targets
Our targets are included in our global sustainability strategy, the SA30. To learn more about the progress we have made toward our goals, you can visit our Integrated Report. For a comprehensive view of our decarbonization strategy, explore our Net-Zero Transition Plan.
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Take action
Resources and materials
While target setting provides a good strategic direction, progress can only be achieved through the implementation of concrete actions.
Possible actions
Hierarchy of measures
Learn about the benefits
SGS's approach
Our NZTP
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Hierarchy of measures
Not all actions have the same impact or are equally effective. Companies should prioritize actions that address the root of the problem and leave actions that merely compensate emissions as the last resort.
Avoid
Most favoured option
Reduce
Replace
Remove
Offset
Least favoured option
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Possible actions
There are several effective actions that companies can take to reduce Scope 1, 2 and 3 emissions, each targeting different areas of operations to maximize impact.
EmissionCalculation Tools
Scope 2
Scope 1
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
SGS Net-Zero Transition Plan (NZTP)
Your efforts matter. Monitoring emissions is essential to track progress, stay accountable and ensure targets are met. Annual verification confirms accuracy, highlights progress and indicates when targets or data need adjustment. Together, we will stay on course toward net zero!
TAKE ACTION
COMMIT
DISCLOSE
MEASURE
MONITOR
Monitor
Track progress, stay aligned.
Your efforts matter. Monitoring emissions is essential to track progress, stay accountable and ensure targets are met. Annual verification confirms accuracy, highlights progress and signals when targets or data need amendments. Together we will stay on course toward net-zero!
Where we stand
Your progress, our progress
What we monitor
Keep growing together
How to choose the right emission factor
Choosing the right emission factor can be complex because they need to account for geography, the specific industry sector, the local electricity mix, etc. The most important emission factors databases are:
What we monitor
Most of our carbon emissions come from our indirect Scope 3 emissions, mostly related to our purchases. This means that, in order to achieve this objective, we rely on our suppliers to join us on this journey by measuring and reporting their carbon footprint, setting ambitious targets and publicly report on their progress.
Scope 3
Indirect emissions from activities not owned or controlled by the company but related to its operations. This often represents the largest portion of a company’s footprint. These emissions can occur upstream (from the production of goods and services that the company purchases or uses) or downstream (from the use or disposal of the company’s products or services).
Emission factor databases
Who can use the Net-Zero Standard
This standard provides cross-sector methods that companies in all sectors, except fossil fuels, can use to set science-based targets. However, the SBTi is also developing sector-specific guidance for companies in certain heavy-emitting industries. Tailored to the needs and context of each industry, these resources enable companies to develop ambitious and achievable science-based targets aligned with 1.5°C.
Sector-specific standards
The Corporate Near-Term Criteria
Furthermore, the SBTi also provides guidance for the Corporate Near-Term Criteria, which sets the requirements for companies to establish short-term targets that align with the 1.5°C pathway. It is often used by companies not yet ready to commit to net-zero, or as the first step in the process. If approved, the SBTi will recognize a science-based target but no net-zero yet.
The Corporate Near-Term Criteria
Difference between a near-term and a net-zero target
Additional resources
GHG Protocol E-Learning opportunities
GHG Protocol events and news
Your progress, our progress
We are impressed by the action you’re taking by tracking emissions, setting goals and reporting results. Your efforts not only contribute to the success of our shared sustainability objectives, but also serve as a strong example for others in the industry to follow. Well done!
Scope 1
Direct emissions from sources owned or controlled by the company, including: fuel combustion (e.g., natural gas in company facilities), company-owned vehicles (e.g., fleet cars, trucks) or industrial processes (e.g., chemical manufacturing emissions).
The Corporate Standard
The GHG Protocol provides free tools to help calculate emissions. These include:
These tools guide users step-by-step and include electronic worksheets.
Calculation tools and guidance
Additional resources
SBTi glossary
SBTi latest press releases, blog posts, events and newsletter
Keep growing together
As we move toward a low-carbon future, we see great potential to strengthen our collaboration with you. Your progress in reducing emissions, along with our shared climate goals, puts us in a strong position to explore future opportunities together. We are keen to discuss partnerships that could help us both move faster toward our goals. By working together, we can create more value and support the global shift to a net-zero economy. We look forward to exploring these ideas with you and are happy to talk further anytime.
Adittional resources
CDP events and past webinars
CDP reporter services: get tailored support
Find an Accredited Solutions Provider (ASP)
CDP Frequently Asked Questions
Schedule and cost
The CDP follows a structured annual schedule for disclosure, which may vary each year. Make sure you understand the timelines before preparing your response.
The CDP’s reporting fees are available in their FAQs, within the second section ‘Disclosure admin fee’:
FAQs
The GHG Protocol Corporate Accounting and Reporting Standard
The GHG Protocol Corporate Standard (first published in 2001) is the main guide for measuring emissions at the company level. It explains how to:
GHG Protocol Corporate Accounting and Reporting Standard
Third-party verification
Third-party verification provides both external credibility and internal insights. Verification must be completed by an accredited third party provider according to recognized standards. Reliable emissions data supports the setting of science-based targets, public recognition by climate ratings such as CDP, and better long-term decision-making.
Scope 3
Indirect emissions from activities not owned or controlled by the company but related to its operations. This often represents the largest portion of a company’s footprint. These emissions can occur upstream (from the production of goods and services that the company purchases or uses) or downstream (from the use or disposal of the company’s products or services).
Other key frameworks
The GHG Protocol has developed several other important standards, including:
Standards & guidance
Eligibility for a simplified questionnaire
For small and medium enterprises (SMEs), CDP offers a simplified questionnaire with fewer and simplified datapoints. The conditions to be eligible for each version of the questionnaire are:
Scope 2
Indirect emissions from purchased electricity, steam, heating, and cooling consumed by the company. These emissions occur at the facility where the energy is generated, not at the point of use. Scope 2 emissions can be accounted by two methods:
The Net-Zero Corporate Standard
The Net-Zero Corporate Standard is the main standard followed by companies to set their net-zero targets. The standard is accompanied by the Net-Zero Standard Criteria, which includes all criteria that must be met for net-zero targets to be validated by the SBTi. This document also includes recommendations which are important for transparency and best practice but are not required.
The Net-Zero Corporate Standard
Recommendations and best practices
SGS CDP report
We have been reporting to CDP for several years, reinforcing our commitment to environmental transparency and helping our clients and stakeholders track their Scope 3 emissions. Our most recent score is available on our website.
Check our CDP score
ISO 14064
ISO 14064 serves as a critical framework for organizations aiming to manage their GHG emissions effectively. It supports compliance with both regulated and voluntary programs, such as emissions trading schemes and public reporting. The standard is designed to be compatible with other frameworks, such as the GHG Protocol, allowing for a unified approach to emissions reporting across different sectors and regions.
Understanding ISO 14064
The Corporate Standard
The GHG Protocol provides free tools to help calculate emissions. These include:
These tools guide users step-by-step and include electronic worksheets.
Calculation tools and guidance
The Carbon Disclosure Project (CDP)
CDP is a global non-profit that promotes environmental transparency by assisting companies, cities and governments in measuring and disclosing their environmental impact. CDP scores companies based on the completeness and effectiveness of emissions reporting and climate strategy. A high score boosts corporate credibility, attracts ESG-focused investors and strengthens market positioning in an increasingly sustainability-driven economy.
CDP
Where we stand
SGS is proud to be the first in our industry to align with the 1.5ºC climate goal. We are working toward net-zero by 2050, and we can’t get there without you. Our targets, verified by the Science Based Targets initiative, guide us on a credible path to decarbonization.
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SGS is a leading professional services company that provides specialized Testing, Inspection and Certification (TIC) services across nearly every sector in over 100 countries. Our services add measurable value to business and society by ensuring products, processes, systems and services meet national and international standards and regulations. At SGS, sustainability has been a core part of our business strategy for over a decade. Sustainability is one of our six business principles and the cornerstone on which all our activity rests. Our business principles are held to be fundamental, overarching beliefs and behaviors that guide our decisions and allow us to embody the SGS brand in everything we do. Our journey began in 2008 with the launch of our first sustainability strategy, setting the foundation for our commitment to responsible business practices. This was followed by our first Sustainability Report in 2010, which enhanced transparency and accountability in our ESG performance. Over the years, we have continuously evolved our approach, culminating in the launch of Sustainability Ambitions 2030 [link] in 2021. Sustainability Ambitions 2030 is fully embedded in our business strategy, Strategy 27: Accelerating Growth, Building Trust [link]. This strategic roadmap ensures that sustainability remains at the core of our operations while responding to key global challenges such as climate change, digital transformation and supply chain evolution. Together, these initiatives drive SGS’s mission to integrate sustainability into every aspect of our business. Sustainability Ambitions 2030 is a comprehensive strategy designed to tackle ESG challenges across our entire value chain. This enables us to focus not only on the value we create in our direct operations and supply chain management, but also the value we enable through our services. The 2030 strategy sets ambitious targets, aligning with the United Nations’ Sustainable Development Goals (SDGs) to deliver measurable contributions to global sustainability efforts. More specifically, to focus on those identified as most closely aligned with our business model. We have mapped them and established our priorities according to the areas where we can have a clear, positive, tangible and long-lasting impact. The initiative and its targets are structured around three core pillars: • Environment: The TIC industry is not a carbon-intensive sector, since it does not include manufacturing processes and facilities. However, we have committed to go even further, significantly reducing our emissions by 2030 and achieving net-zero emissions by 2050, as validated by the Science Based Targets initiative (SBTi) • Social: With more than 99,500 employees in 115 countries, SGS is a people company, our knowledge is our greatest asset. As a people-based business, we strive to make a meaningful and positive impact on individuals - both within the organization and in the wider community, focusing on empowering equality, well-being and prosperity • Governance: A strong governance structure ensures that sustainability remains at the heart of our activities, enabling long-term value through secure, fair, transparent and responsible business practices. Top management is actively involved in overseeing the delivery of our sustainability strategy. Recognizing the importance of leadership in driving sustainability, SGS has linked top management’s long-term incentive to sustainability performance and established a Sustainability Committee at Board level, ensuring governance and accountability at the highest level The final goal of our strategy is to maximize the positive impact that our company generates on society or our value to society. To better understand how we create value and make better strategic decisions, we have developed our Impact Valuation Framework based on the International Integrated Reporting Framework. This methodology allows us to accurately quantify our contribution or impact on society and then make better-informed decisions and improve the quality of information available to investors. Our ESG achievements have been widely recognized. We are ranked #1 in the Professional Services Industry in the S&P Global Corporate Sustainability Assessment and have been listed on the DJSI World and DJSI Europe for the 11th consecutive year. We were also ranked sixth on TIME’s list of the World’s Most Sustainable Companies. Additional recognitions include an EcoVadis Gold Medal (top 6% of over 100,000 companies), AAA rating from MSCI for the third year running and approval of our 1.5ºC and net-zero targets by the Science Based Targets initiative—the first in our industry. We were rated as “low risk” by Sustainalytics, received a PRIME rating from ISS ESG and were listed in the FTSE4Good Index and the FTSE Diversity & Inclusion Index. Lastly, our integrated annual report was awarded third place for Value Reporting in the Swiss Annual Report Rating.
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