The Science Based Targets Initiative (SBTi) has announced pivotal updates to its sector standards for oil and gas, chemicals, and power industries. These updates, aimed at aligning high-emission sectors with the Corporate Net-Zero Standard, are crucial for advancing global decarbonization efforts. By establishing clear, science-aligned pathways, SBTi continues to empower businesses to meet ambitious net-zero targets.
The oil and gas sector, responsible for 85% of global CO2 emissions, urgently requires transformation. SBTi's Oil and Gas Standard is set to be the first framework of its kind, offering businesses in this high-impact industry a roadmap to decarbonize. The initiative highlights key milestones, including a draft public consultation in early 2025, allowing stakeholders to shape this essential resource.
With two rounds of consultations, including a 45-day feedback period, the SBTi ensures comprehensive input from experts and industry leaders. This collaborative process aims to create minimum criteria for 1.5°C-aligned science-based targets.
The chemicals sector underpins 95% of all manufactured products, making it a vital area for decarbonization. As the third-largest industrial emitter globally, its transformation will significantly impact other sectors, including healthcare, construction, and agriculture.
SBTi's Chemicals Sector Criteria are now in their second consultation phase, inviting industry players to participate in pilot testing. The finalized criteria, expected in Q3 2025, will guide the industry in adopting sustainable practices, particularly in its role within the plastics value chain.
The power sector, the largest global source of CO2 emissions, faces increasing pressure as electricity demand continues to grow. The updated Power Sector Standard aims to address this challenge, with its first public consultation draft anticipated in Q2 2025.
This initiative provides utilities and energy companies with the tools to transition toward renewable energy, contributing significantly to global net-zero goals.
SBTi’s development process relies on expert advisory groups representing businesses, academia, and civil society. These groups provide specialized guidance to ensure the standards are ambitious yet practical. The initiative also emphasizes interoperability, aligning its various resources to streamline the target-setting process for companies.
In addition to these sector standards, SBTi is advancing work on standards for financial institutions, automotive, and apparel industries. The updated Corporate Net-Zero Standard further integrates these efforts, reinforcing a unified approach to decarbonization.
Related Article: SBTi Announces Major Revision of Corporate Net-Zero Standard
Stakeholder involvement remains a cornerstone of SBTi’s methodology. By participating in consultations or pilot testing, organizations and individuals can directly shape these transformative standards. Updates and opportunities for engagement are shared via SBTi’s website, newsletter, and social media platforms.
As timelines are subject to change, staying informed is key to contributing effectively to this global effort to combat climate change.
The SBTi standards represent a critical step forward in aligning high-emission sectors with science-based net-zero pathways. With collaborative development and a focus on actionable solutions, these standards will play a pivotal role in driving sustainability across industries.
For more details, check the full press release here.
Stay informed on the latest ESG insights and updates. Follow us on LinkedIn.
Want to stay ahead in the world of sustainability? Subscribe to our newsletter for the latest insights on ESG trends, sustainability reporting, and innovative strategies.
💡 Be part of the change! Join our ESG Community Forum to share your perspectives, connect with like-minded professionals, and shape the future of sustainable practices.
Comments