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SBTi Announces Major Revision of Corporate Net-Zero Standard
The Science Based Targets Initiative (SBTi) has announced a significant update to its Corporate Net-Zero Standard. This revision, labeled Corporate Net-Zero Standard V2.0, aims to refine and enhance the framework guiding corporate net-zero targets, ensuring alignment with the latest scientific developments and best practices.
This initiative plays a crucial role in enabling companies to combat climate change by setting and achieving science-based targets.
Related Article: EU's Net-Zero Industry Act Under the Green Deal
Objectives of the SBTi Net-Zero Standard Revision
The primary goal of the Corporate Net-Zero Standard V2.0 is to maintain the credibility of the SBTi framework. This revision is designed to ensure that corporate targets are robust and aligned with the latest scientific findings, including those from the IPCC Sixth Assessment Report.
The objectives include:
Alignment with Latest Science: Integrating new scientific insights and best practices, such as recommendations from the UN High-Level Expert Group.
Enhanced Value Chain Emissions Approach: Improving the framework for scope 3 emissions to make it more actionable.
Continuous Improvement: Introducing regular target cycles to promote ongoing progress and revalidation of targets.
Improved Structure and Interoperability: Clarifying relationships with other standards and enhancing the format for better usability.
Key Steps in the Development Process
The revision of the Corporate Net-Zero Standard follows a transparent and inclusive development process.
Key steps include:
Initiation
Research
Drafting
Consultation and Pilot Testing
Approval
Implementation
Monitoring and Evaluation
The public consultation phase is expected to begin in late 2024 or early 2025, with the final standard anticipated for release in late 2025.
Justification for the Revision
The SBTi identified several reasons for this major revision:c
Stakeholder Feedback: Feedback from companies using the current standard highlighted areas for improvement.
Evolving Science and Best Practices: New reports and guidelines, such as the IPCC and HLEG reports, provide updated insights that the standard must reflect.
Scope 3 Target Setting: The revision aims to refine scope 3 target-setting approaches based on new research and stakeholder input.
Regular Target Revalidation: With many companies nearing the end of their first target cycle, there is a need for a structured revalidation process.
Expected Deliverables
The Corporate Net-Zero Standard V2.0 project includes several deliverables to enhance transparency and stakeholder engagement:
Interim Deliverables: Including evidence submissions, systematic reviews, and discussion papers on scope 3 targets.
Final Deliverables: The final standard, updated target-setting tools, and criteria assessment indicators.
Engagement and Consultation
The SBTi encourages stakeholders to engage in the development process through various channels, including project feedback forms, public consultations, and pilot testing. The initiative welcomes input from a diverse range of stakeholders, including academic institutions, civil society organizations, and technical experts.
Timeline and Implementation
The revision process is structured to ensure thorough development and stakeholder engagement. Key milestones include the public consultation phase in late 2024 or early 2025 and the final publication of the revised standard in late 2025. The SBTi will provide detailed guidance to support companies transitioning to the new standard.
Significance of the SBTi Net-Zero Standard V2.0
The Corporate Net-Zero Standard V2.0 represents a significant step forward in ensuring that corporate climate action remains grounded in the latest science and best practices. By refining the framework and enhancing the robustness of net-zero targets, the SBTi aims to support companies in their journey towards a sustainable and resilient future. This major revision underscores the importance of continuous improvement and stakeholder collaboration in addressing the global climate crisis.
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