SBTi Releases Revised Corporate Net-Zero Standards for Public Input
Small and Medium Enterprises and their concerns are taken into account.
A proposal has been introduced requiring companies to transition to low-carbon electricity by 2040.
The Science Based Targets initiative (SBTi) has announced that it has published a new draft of its revised Corporate Net-Zero Standard for public consultation and opinion.
This updated framework has factored in the latest climate science, regulations, and feedback from numerous companies, helping businesses set and achieve their net-zero targets more effectively, as well as addressing the common challenges faced in doing so.
Businesses are now requested to share their feedback concerning the new draft before finalising it.
One of the most common challenges companies face is accounting for scope 3 emissions, which are known as supply chain emissions and the hardest to reduce. This is a major focus in the draft, and the new approach offers businesses more flexibility and helps them meet targets through green procurement and revenue generation rather than setting direct emissions reduction targets and encourages companies to take action in the most emissions-intensive areas.
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The draft also focuses on splitting direct emissions into Scope 1 and 2 to identify decarbonisation challenges associated with each category. In addition, there is a proposal that requires companies to transition to low-carbon electricity by 2040 and recognises those investing in Beyond Value Chain Mitigation (BVCM), supporting climate action beyond their direct operations and the introduction of interim carbon removal targets.
For transparency and accountability, the draft mentions the requirement for businesses to monitor and report their progress against targets. This provision recognises companies reinforcing their efforts in decarbonisation.
To resolve the challenges faced by Small and Medium Enterprises (SMEs) and developing markets, it includes simplified requirements to promote their participation.
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Francesco Starace, Chair, SBTi said: “The SBTi has always been at the frontier of climate action. The draft standard addresses complex, emerging issues and lays the foundation to enable more companies to move further and faster towards net-zero.
"Working hand-in-hand with stakeholders across the ecosystem to seek and consider a diverse range of views, we aim to produce a standard that is both rigorous and practical, and works for businesses and the planet. With a limited carbon budget left, this is more important than ever. Companies can unlock long-term growth, drive transformation and build investor confidence by acting at pace to accelerate climate action.”
The consultation will run from March 18 to June 1, and stakeholders can send their feedback via the SBTi Consultation Guide or webinar.
For a detailed view, click here to download the draft.
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Source: SBTi
