They are distinct but converging frameworks. CSRD is a European regulatory obligation for structured climate trajectory reporting, restricted since the 2026 Omnibus I Directive to companies with more than 1,000 employees and €450m turnover. SBTi is a voluntary framework for scientific target validation. In practice, the two converge: ESRS E1 requires reporting whether the company has 1.5°C-aligned targets validated by an independent third party, and SBTi provides precisely that third party. Having an SBTi trajectory mechanically facilitates CSRD compliance.
Read the source article: SBTi for an industrial SME: method, cost and timescales