SBTi or SME Climate Hub: which route fits your business?

Companies are regularly asked by customers, retailers or other value chain partners to formalise climate targets. In those conversations, terms such as SBTi and SME Climate Hub are frequently mentioned.

For many organisations, this immediately raises questions. Is this mandatory? Does it also apply to SMEs? And which route is actually the right fit for your business?

Choosing the wrong route can lead to unnecessary work, additional costs and delays. At the same time, the right approach can create opportunities: stronger customer relationships, better insight into your organisation and a future-ready market position. That is why it is important to first determine what is appropriate in your specific situation.

Why this question matters

Large organisations are working on CO₂ reduction and greater transparency across their value chains. As a result, they are increasingly asking suppliers about emissions, reduction targets and progress.

For suppliers, these requests often relate to topics such as:

• climate targets

• CO₂ reduction

• measurability

• progress reporting

• demonstrable action

  
  

As a result, smaller companies are increasingly facing these questions as well.

Why many companies get stuck

In practice, we see businesses running into the same challenges time and again.

Uncertainty about what is really required

SBTi is often mentioned, while for many organisations the SME Climate Hub may also be a suitable route.

Fear of a heavy process

Companies expect high costs, complex calculations and significant internal workload.

Time pressure

Customers set deadlines while internally it is still unclear where to begin.

Limited capacity

Many organisations do not have a dedicated sustainability department or internal project team.

SBTi and SME Climate Hub: what is the difference?

Both routes are about setting climate targets and demonstrating that your organisation is taking action. However, they differ in scope, complexity and target audience.

SBTi

SBTi is often used by larger organisations or businesses with more complex structures, larger emissions footprints or international expectations from customers and investors.

SME Climate Hub

The SME Climate Hub was developed as an accessible route for smaller businesses that do need to take action, but are not well served by a heavy validation process.

Which route fits your business?

That depends on several factors, such as:

• the size of your organisation

• whether you are part of a larger group or independent

• the sector you operate in

• the size and complexity of your emissions

• explicit customer requirements

• available time and capacity

• strategic ambitions

There is therefore no one-size-fits-all answer.

Practical example

A supplier was told by a major customer that compliance with SBTi was required. After further assessment, another route proved to be a better fit for the size and circumstances of the business.

By first identifying the right route, unnecessary costs and delays were avoided, allowing the company to move forward more quickly.

Why choosing the right route matters

Choosing the right route helps you to:

• move faster

• avoid unnecessary costs

• keep internal workload manageable

• better align with customer expectations

• demonstrate progress

• create calm and clarity

• make better use of commercial opportunities

• strengthen your market position

  
  

What can you do now?

Step 1: Determine which route fits your business

Is SBTi the right fit for your organisation, or is the SME Climate Hub sufficient?

Step 2: Align expectations early

Talk to customers or value chain partners about what is concretely expected, which route they consider appropriate and what information is needed in the short term. This prevents building further on incorrect assumptions.

Step 3: Work in phases and build on what already exists

Not everything has to be completed at once. Start with the data already available, identify what is still missing and be transparent about uncertainties. Strengthen your data foundation step by step, set targets and work towards a practical implementation plan.

Step 4: Show progress and use the opportunity

Demonstrate which steps have already been taken, which areas are still under development and how you continue to improve reduction efforts and data quality. Use the process to strengthen customer relationships and position your organisation for the future.

Unsure which route fits?

DuFinco helps organisations translate external climate requirements into a practical and proportionate approach. No unnecessary complexity, but clarity on what is required and how to implement it effectively.

Would you like to discuss what is logical and proportionate in your specific situation? We would be happy to speak with you.

Email us at info@dufinco.nl or miranda.haak@dufinco.nl.

Call us on +31 6 512 47 217.