Global buyers are paying closer attention to the environmental performance of their suppliers. For Bangladeshi garment factories and other export manufacturers, reducing greenhouse gas emissions is becoming an important part of long-term business planning. Buyers increasingly ask suppliers to share carbon data, demonstrate energy savings, and support supply-chain sustainability goals.
However, making general statements about being a “green factory” is not enough. Manufacturers need reliable emissions data, measurable reduction targets, and a practical plan to achieve them.
This is where the Science Based Targets initiative (SBTi) can help. The SBTi provides a framework for companies to set greenhouse gas reduction targets aligned with climate science. For manufacturers, following this framework can help turn sustainability commitments into measurable business actions.
What Is SBTi and Why Does It Matter for Factories?
The Science Based Targets initiative helps companies develop emissions reduction targets consistent with climate science and global climate goals. Its Corporate Net-Zero Standard provides guidance for setting near-term and long-term emissions targets.
For Bangladeshi exporters, SBTi alignment can support conversations with international buyers, improve emissions management, and help identify opportunities to reduce energy costs. Companies may also use credible climate targets to strengthen their sustainability reporting.
However, SBTi target validation does not guarantee export orders, buyer approval, or financing. Its value depends on the credibility of the targets and the progress a company makes toward achieving them.
How to Align Your Manufacturing Facility With SBTi
1. Establish Your Greenhouse Gas Emissions Baseline
The first step is understanding how much greenhouse gas your factory emits.
A carbon inventory organizes emissions into three categories:
- Scope 1: Direct emissions from natural gas, diesel, boilers, captive generators, company vehicles, and refrigerant leaks.
- Scope 2: Emissions associated with purchased electricity and other applicable purchased energy.
- Scope 3: Other indirect emissions from purchased materials, transportation, waste, and relevant supply-chain activities.
Start by collecting electricity bills, fuel records, production data, refrigerant information, and material purchase records. Use consistent calculation methods and document your assumptions.
A reliable baseline helps identify the largest emission sources and provides a reference point for measuring future reductions. Your reporting boundary and calculation methods should follow the applicable SBTi criteria and recognized greenhouse gas accounting guidance.
2. Choose the Right SBTi Standard and Target-Setting Route
Not every company follows the same target-setting pathway. The appropriate route depends on factors such as company size, organizational structure, sector, emissions profile, and applicable eligibility criteria.
Eligible small and medium-sized enterprises may use a streamlined validation route. However, having fewer than 500 employees does not automatically qualify a company for the SME pathway. Factories should confirm their eligibility through the official SBTi Services guidance.
Standard selection also matters in 2026. The SBTi published Corporate Net-Zero Standard Version 2.0 in June 2026, with target validation under the new version scheduled to open on February 1, 2027. Version 1.3.1 remains applicable for target validation during 2026 and is available during the transition period.
Companies preparing targets should check the current SBTi Corporate Net-Zero Standard guidance before deciding which version to use.
3. Set Measurable Emissions Reduction Targets
Once the baseline is ready, the next step is establishing targets that meet the applicable SBTi criteria.
Companies typically consider two types of targets:
Near-term targets: These set emissions reduction goals over approximately five to ten years, depending on the applicable requirements.
Net-zero targets: These establish a longer-term pathway toward deep emissions reductions and net zero, generally by 2050 or earlier under the relevant standard.
Do not assume every factory must reduce emissions by exactly 4.2% annually. The required reduction depends on the selected methodology, target type, baseline year, and applicable criteria.
The objective is to establish scientifically grounded targets that are ambitious, measurable, and realistic for the company’s operations.
4. Build a Practical Decarbonization Roadmap
Targets become valuable when they lead to actual improvements on the factory floor. Manufacturers should identify projects that reduce emissions while considering investment costs, operating savings, and technical feasibility.
Common opportunities include:
- Energy efficiency: Optimize boilers, compressed air systems, motors, pumps, chillers, and HVAC equipment.
- Renewable energy: Assess rooftop solar and other suitable renewable electricity options.
- Fuel reduction: Improve combustion efficiency, reduce heat losses, and evaluate lower-emission alternatives where technically feasible.
- Waste heat recovery: Capture usable heat from industrial processes to reduce additional fuel demand.
- Supply-chain engagement: Work with fabric, yarn, chemical, packaging, and logistics suppliers to identify Scope 3 reductions.
Prioritize projects using estimated emissions reductions, capital requirements, payback periods, and implementation risks.
For example, repairing compressed air leaks may require relatively little investment, while replacing a boiler or installing a large rooftop solar system may need more detailed financial planning. Combining different measures can help create a balanced roadmap.
5. Submit Your Targets and Track Annual Progress
After developing the targets, prepare the required documentation and follow the relevant SBTi registration, submission, and validation process.
Companies should assign responsibilities, maintain supporting records, and establish a process for monitoring emissions annually. Progress reports should explain changes in energy use, production levels, emissions sources, and implemented reduction projects.
Regular monitoring helps management identify delays, adjust investment priorities, and communicate credible progress to buyers and other stakeholders.
Remember that submitting a target is only the beginning. Long-term credibility depends on implementing the roadmap and demonstrating results.
What Are the Business Benefits of SBTi Alignment?
A structured decarbonization plan can help manufacturing facilities make better investment decisions, identify energy savings, and prepare for changing buyer expectations.
For exporters, credible emissions targets and transparent reporting can strengthen sustainability discussions with international customers. Energy efficiency improvements may also reduce utility expenses and improve operational performance.
However, supplier retention, new orders, and financing are not guaranteed outcomes. Businesses should view SBTi alignment as a long-term management strategy rather than a shortcut to commercial success.
Develop Your SBTi Roadmap With Hexa Engineering Limited
Setting science-based targets requires accurate carbon accounting, appropriate target selection, practical engineering solutions, and consistent monitoring.
Hexa Engineering Limited supports manufacturers with SBTi consultancy, emissions baseline assessment, near-term target setting, net-zero target development, submission support, and decarbonization planning.
From evaluating your factory’s carbon footprint to identifying energy efficiency and renewable energy opportunities, Hexa can help your business develop a structured approach to emissions reduction.
Visit Hexa Engineering Limited’s SBTi Consultancy page to discuss your manufacturing facility’s target-setting and decarbonization needs.
Turn your sustainability commitments into measurable progress with Hexa Engineering Limited.