Companies can now have their double-materiality assessment and prioritization steps (Steps 1&2) independently validated by the Accountability Accelerator without any time-bound commitment to set targets (Step 3). Some companies value taking a pause after the completion of their assessment and prioritization steps (1&2), in order to build the additional capacity and expertise required for target-setting. This is especially helpful as pilot companies reported being able to use much of their materiality assessment to achieve parallel goals, for example for their CSRD reporting. Independent validation allows companies to achieve recognition for completing scientifically rigorous materiality assessments while they work towards setting targets.

Related resources:

• Learn more about Step 1: Assess your impacts on nature and Step 2: Prioritize
• Learn more about the target validation process and why it’s valuable for companies
• Learn more about communicating target-setting milestones in the SBTN Claims Guidance

After a high-level screening using SBTN’s open-access Materiality Sector Tool (Step 1A), companies can then focus on a specific business unit, rather than their entire enterprise, for the value chain assessment (Step 1B) onwards. This helps reduce complexity and is particularly useful when data is more readily available or ambition is greater in one part of the business. For example, in the pilot Carrefour focused on a select product group (15 own-brand food products) in a particular country operation (France), where data was readily available and over which they had more control. Other retailers may wish to adopt this approach as a starting point.

Related resources:

• Review these summary slides about the Business Unit Approach
• Business unit selection is explored in Step 1b: Value chain assessment, Task 6. Find out more about Step 1b on this webpage or in the Corporate Manual (pg. 27)
• Read the Carrefour case study to learn more about how they leveraged this approach

To focus efforts on their most important nature impacts, companies can exclude their minor impacts from the analysis during the value chain assessment (Step 1b). If a company can demonstrate that an impact identified in the materiality assessment is immaterial, for example due to small sourcing volumes or existing mitigation practices, it may be excluded from further analysis – quantifying environmental pressures in the value chain assessment (in Step 1B) onwards. 

This option requires that 90% of High Impact Commodity (HIC) volumes and 67% of total material commodity volumes remain in the analysis. This means that companies can exclude up to 10% of the combined volume of their HICs and up to 33% of all their total upstream volumes. EUDR commodities, however, cannot be excluded.

Related resources:

• Find out more about Step 1b: Value chain assessment on this webpage. Task 7: Map your value chain activities and locations is particularly relevant for this pathway (also found on page 28 of the Corporate Manual).

Recognizing potential supply chain traceability limitations, companies can focus their target-setting on those upstream commodity volumes which are traceable to at least the sub-national level. For commodity volumes companies cannot trace to the sub-national level, they can instead make progress on improving traceability before setting targets. SBTN allows companies to separate their upstream commodity volumes into two categories:

• Target boundary A: Commodity volumes that are traceable to the sub-national level (i.e. more specific than the country level) – these volumes are suitable for target-setting.  
• Target boundary B: Commodity volumes that are not yet traceable to the sub-national level – these volumes can be deprioritized from initial target setting.

Companies can set targets for Boundary A while working to improve traceability for Boundary B volumes over time. Ultimately, companies must transition all upstream commodity volumes from target boundary B to target boundary A by the target date for the Land targets and within five years of target-setting for Freshwater targets. 

Related resources: 

• See Step 2 Technical Guidance V1.1 Tasks 1 and 2 for more information on target boundary delineation (also available in the Corporate Manual, pg. 39-43)

After completing their Materiality Assessment and Prioritization (Steps 1 & 2) across all issue areas, companies can begin by setting targets (Step 3) in a single issue area, based on their readiness, strategic priorities, or data availability. 

This approach can help companies build the capacity and knowledge in one issue area before expanding target-setting to other issue areas over time. For example, one pilot company submitted Freshwater targets while they scoped out the potential for setting Land targets. 

For Freshwater targets, specifically, companies can set as many or as few targets as they choose. Freshwater quantity is important for most sectors, and most companies will have enough freshwater data to set such targets for their direct operations, however, companies can set targets in direct operations only, or set quality and quantity targets separately.

Related resources:

• Learn more about Step 3: Set Targets
• Learn more about the Validation process

When setting Freshwater targets, SBTN allows companies to consult with just one relevant local-level stakeholder per basin, as long as the stakeholder can point to an appropriate local model and threshold with supporting evidence. (Note that consultation with several stakeholders is still recommended, and the list of relevant local-level stakeholder types remains unchanged).

The SBTN Stakeholder Engagement Guidance also provides materials to support companies in this exercise.  This targeted approach recognizes that while stakeholder engagement helped pilot companies better understand the needs of each basin, it could be a resource-intensive process.

Related resources:

• SBTN Stakeholder Engagement Guidance V1

Companies setting a No Conversion of Natural Land target have the option to postpone their upstream deforestation and conversion-free (DCF) target dates. This option has been introduced because, while the scientific basis for urgent action remains unchanged, we recognise that many companies do not have the traceability to confidently verify DCF sourcing across their full supply chain. 

The postponement is strictly limited (postponement can only be to 2027 and 2030, in accordance with SBTN’s published target language). It applies to upstream commodities only, and has to be fully justified in validation submission and fully reflected in a company’s claims. Postponing deforestation target dates does not apply where commodities are subject to EUDR requirements on zero deforestation (EUDR does not cover conversion of non-forested natural land). 

Related resources:

• For more information on the specifics of target date flexibility and associated claims requirements, refer to section 3.2.6 of the SBTN Claims Guidance.