Target setting process questions
Here we provide answers to common technical questions that companies have as they are going through the target-setting process.
The latest freshwater science-based targets focus on three key issues: water use, specifically withdrawals from surface water bodies and groundwater, freshwater pollution resulting from nitrogen and phosphorus application, and the ecotoxicity impacts of pesticide use.
These pressures are addressed by freshwater science-based targets because of their relevance to the majority of companies (freshwater use), their significance in specific sectors and environmental issues (freshwater pollution and ecotoxicity impacts), and together are three of the key pressures that are driving the loss of nature in ecosystems around the world.
"What SBTN has added that is genuinely new is the basin-by-basin, context-specific framing. We are used to group-level consolidated targets, but the SBTN approach requires local stakeholder engagement, local hydrological models and site-level accountability. Over time, our conversations with investors have become more productive because it helps the market develop a more sophisticated understanding of what context-specific nature targets look like."
Excessive water withdrawals reduce water volumes in the environment, which negatively impacts aquatic ecosystem resilience and decreases the capacity of the environment to sustain plant and animal life.
Freshwater targets are basin-specific
All basins vary in terms of their local climate, topography, soil conditions, and local biodiversity, among many other factors. Humans exert varying degrees of pressure on each basin depending on factors such as population and economic activities, whether that is water withdrawals, nutrient pollutant loading, or pesticide use. For this reason, Freshwater targets are basin-specific: they are defined as the difference between baseline and maximum allowable pressures at each basin, with the exception of:
Feasibility options help companies take action sooner
Acting on your Freshwater targets directly addresses some of the most critical threats to freshwater ecosystems—excessive water withdrawals from rivers and aquifers, and pollution from nutrients and pesticides—by keeping your company’s pressures within scientifically defined ecological limits.. By bringing your water withdrawals and pollutant loads within these specific ecological limits, you are directly mitigating the drivers of ecosystem degradation and creating the conditions for freshwater species to recover and thrive.
While biodiversity is not always treated as an explicit, separate metric in the Step 3 target-setting process, the health of freshwater systems and their biological diversity are inextricably interlinked. Therefore, biodiversity is fundamentally embedded within the environmental thresholds that dictate your target ambition levels.
Published in August 2026, the SBTN Freshwater Hub’s new paper, “Crosswalking SBTN Freshwater Requirements with CSRD Water Disclosures,” answers this question. Building on the 2024 publication about how freshwater targets relate to other corporate water stewardship initiatives, this paper offers practical guidance for companies navigating both science-based action and evolving regulatory expectations.
Resources for Step 3 - Set Freshwater targets