XDC – the tangible alternative to SBTi
How close is your company to the Paris Agreement’s 1.5°C goal—and how much further does it need to go? Unlike conventional climate metrics, XDC translates climate risks and the action required into an intuitive temperature figure. Find out how XDC works, how it differs from the SBTi, and what benefits it offers medium-sized companies.
10 June 2026
4-minute read
Companies are facing growing pressure. Regulators, stakeholders, and market forces all expect transparent, science-based climate strategies. Many turn to the recognised Science Based Targets initiative (SBTi) for guidance. But emissions figures on their own can feel abstract and hard to interpret – especially in relation to the global 1.5°C climate goal. Is a reduction of 4,000 tonnes of CO₂ a lot, for example, or nowhere near enough?
This is exactly where XDC comes in: It translates emissions into a single, intuitive figure – a degrees Celsius value – making it possible to compare your performance against the global climate target. For mid-market businesses, the XDC model can be an effective addition or alternative that simplifies climate strategy, corporate management, and communication, while keeping them grounded in science.
What does XDC stand for?
XDC stands for “X-Degree Compatibility.” It describes how compatible a company’s economic activities are with the global temperature target. The X represents the number of degrees Celsius the Earth would warm if all companies operated like the company being assessed. The model translates complex emissions data into a clear, understandable metric that you can communicate both internally and externally.
Important to know: XDC builds on emissions data you have already compiled and is therefore not used to calculate your climate footprint.
What is the XDC model?
The XDC model uses a data-driven approach to determine a company’s climate impact and expresses it as a temperature value. Since total emissions are usually distributed unevenly across the scopes, the XDC can also be broken down by the relevant scopes. This makes the XDC model a very intuitive way to assess how well companies and their activities align with climate targets. The XDC temperature value shows how much our planet would warm if the world operated the way the assessed company does. This makes it easy to see, at a glance, how much better or worse a company performs each year compared to the 1.5°C goal.
The goal of the XDC model is to give companies a clear, scientifically grounded picture of their contribution to global warming. This makes it easier to develop, manage, and communicate effective decarbonisation strategies. The resulting temperature value also allows you to assess how effective different companies’ climate strategies are and to compare them with one another. In addition, XDC enables scenario analyses – for example, based on a “business as usual” strategy or with reduction measures factored in. The XDC model can also be applied to real estate and countries.
However, it should be noted that the system does not validate data. This means you need to enter verified data – on emissions, for example – into the model. The XDC results are ESRS-ready and are already being used in annual and sustainability reports.
Who is behind XDC?
The XDC model was developed by “right. based on science.” This German company specialises in science-based climate metrics. With XDC, it offers a tool that makes emissions transparent, comparable, and actionable for decision-makers. The calculations are based on established climate models and global scenarios, including those from the International Energy Agency (IEA) and the One Earth Climate Model (OECM). The Finite Amplitude Impulse Response (FaIR) climate model is also used in the XDC methodology.
Differences between SBTi and XDC
The SBTi has established itself as the standard for science-based climate targets. The partner organisations behind the SBTi define standardised target pathways and fixed reduction rates for greenhouse gas emissions, in order to meet the 1.5°C goal of the Paris Agreement. The SBTi reviews the defined sustainability targets for a fee and approves how they are communicated.
The XDC model, on the other hand, measures climate compatibility using a temperature value, creating a direct link to the global warming target. While the SBTi focuses primarily on setting and validating targets, XDC provides an intuitive metric that makes a company’s current status and progress transparent. This makes it easier to track and manage how well you are meeting your targets. Both models can be used together.
Is XDC an addition to SBTi?
The XDC model is not designed to compete with the SBTi, but to complement it. Together, the two approaches offer a holistic framework for implementing decarbonisation strategies. Companies that have already defined science-based targets under the SBTi can use XDC to determine their temperature compatibility and show where they stand in the global climate context. This not only creates transparency, but also enables more effective communication with stakeholders and investors.
Conversely, XDC can also serve as an entry point for companies that have not yet engaged with concrete reduction pathways and want to gain initial insights into their own climate impact, since XDC does not depend on SBTi validation.
How much does XDC cost?
Unlike labels or certificates, XDC does not come with a flat-rate price. The provider “right. based on science” and its partner companies offer individual terms. That makes a consultation well worth it. At leadity, you receive this free of charge and with no obligation, including an XDC benchmarking tailored specifically to your industry.
XDC is a voluntary tool with multiple benefits
Using the XDC model is not mandatory. It is a voluntary tool that companies can leverage to make their decarbonisation strategy transparent and scientifically grounded. For mid-market businesses, it helps communicate a company’s climate strategies concisely and clearly, because it expresses complex Scope 1, 2, and 3 emissions in a simple temperature metric.
It also works as an effective management tool, showing how consistently a company is pursuing its sustainability goals – and where it is falling behind. Legal requirements, such as emissions reporting, can be met more efficiently and transparently by using XDC.
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Conclusion
The XDC model offers mid-market businesses an innovative way to make their contribution to climate action measurable and to communicate it clearly. By translating CO₂ emissions into a meaningful degrees Celsius value, XDC creates transparent, easy-to-understand comparability – not only for sustainability leads, but also for management teams, investors, and other stakeholders. It complements the SBTi and helps put decarbonisation strategies into practice in a targeted, hands-on way.
If you want to increase transparency and effectiveness in your climate strategy, the XDC model is a practical tool. XDC works well as an entry point into climate management, as well as a complement to existing target systems such as the SBTi.
Free initial consultation: Your individual XDC Benchmarking
In a free consultation, our experienced leadity experts will provide your individual benchmarking based on the XDC model. After the session, you will know:
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How is your sector performing – now and in the future?
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How much is your industry contributing to global warming (in °C)?
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Are you outperforming your peers?
Individually created benchmarking – in cooperation with right°.
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