Science-Based Targets Initiative sets out corporate net-zero revamp

Science-Based Targets Initiative, the climate-certification body, has recently released updates to its net-zero requirements, aiming to better align with the practical challenges faced by companies. Established ten years ago in London, SBTi serves as a framework for companies to establish their net-zero emissions targets.

In 2024, SBTi faced criticism over its policy on allowing offsets for emissions reductions. Following public backlash, the then CEO Luiz Fernando do Amaral stepped down for “personal reasons.” Last March, SBTi initiated a consultation process for proposed changes, leading to the publication of the “corporate net-zero standard V2.0” on June 11. This updated standard aims to translate climate science into actionable pathways for decarbonization.

The new standard maintains the stance against using offsets to achieve emissions targets, emphasizing the importance of value-chain decarbonization. However, it introduces options for investing in permanent carbon removals and related credits to complement decarbonization efforts without substituting for them.

In response to feedback, SBTi has introduced an “ongoing emissions responsibility framework” to acknowledge supplementary actions while companies reduce their emissions. This framework emphasizes the scaling of removals to neutralize residual emissions over time. Companies can support verified mitigation outcomes and other climate actions, reporting them separately from science-based targets.

Targets under the revised standard will be set on a best-efforts basis, recognizing uncertainties and dependencies with transparency in implementation progress. The standard also includes targets tailored for companies in various contexts, such as sectors, geographies, and capital stocks.

SBTi classifies companies based on revenue thresholds and country income categories, with different requirements for each classification. A structured “implementation hierarchy” assists businesses in working towards their targets effectively.

The new standard aims to address the diverse operational realities of companies while upholding scientific rigor and credibility. It responds to the need for a nuanced approach that considers sectoral differences, geographic variations, and company sizes.

This article was adapted from a piece originally published by Just Food, a GlobalData owned brand. The information presented here is for general informational purposes only and should not be considered professional advice. It is recommended to seek specialized guidance before making decisions based on the content provided.