Before setting targets under SBTi CNZS v2.0, companies first need to determine whether they fall into Category A or Category B, because that classification shapes what is required of them. It affects the level of ambition, the scope of disclosure, the need for transition planning and assurance, and how much flexibility a company has in setting and implementing targets.
| Step | Test | Threshold / rule | Result |
|---|---|---|---|
| 1 | Check company size | Large if the company has more than 1,000 employees or net worldwide turnover above €450 million. | Category A |
| 2 | If not large, check whether the company is medium-sized | Medium-sized if it meets at least 2 of 3: 250–1,000 employees, €50–€450 million turnover, €25 million+ balance sheet total. | Go to Step 3 |
| 3 | Check geography for medium-sized companies | High-income / high and upper-middle-income country = Category A; lower-income country = Category B. | Category A or B |
| 4 | If not large or medium-sized | Small companies fall into Category B; the SBTi materials describe this using employee, turnover and balance-sheet thresholds. | Category B |
In plain English
- Category A = any large company, plus medium-sized companies in high-income countries.
- Category B = small companies everywhere, plus medium-sized companies in lower-income countries.
