This initial draft offers a science-based practical blueprint designed to help an increasing number of companies joining the ranks of over 3,000 firms already committed to or targeting net-zero emissions.
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The SBTi is inviting corporations and stakeholders to participate in the consultation process, aiming to maintain the standard’s robustness while ensuring its feasibility in application.
Key information from the proposed revisions:
– The draft distinguishes between scope 1 and scope 2 emissions, recognising their distinct decarbonisation challenges. It suggests a pledge for transitioning to low-carbon electricity by 2040 at the latest.
– It proposes enhanced flexibility by offering options to establish targets for green procurement and revenue generation, rather than mandating a specific emissions reduction goal. By concentrating on direct suppliers and entities within emissions-intensive sectors, this approach aims to direct efforts toward the most carbon-intensive activities where companies can exert significant influence.
– It outlines options to address unabated and residual emissions, including formally recognising companies investing in Beyond Value Chain Mitigation (BVCM) and introducing interim carbon removal targets.
– The draft standard also introduces a requirement for assessing and communicating progress toward targets to enhance accountability and acknowledge companies leading in decarbonisation.
– Easing the process for medium-sized enterprises in developing countries and small and medium-sized enterprises (SMEs) by introducing simplified requirements that consider their unique capabilities and resources, thus fostering widespread voluntary corporate climate action.
To facilitate a seamless transition from the current Corporate Net-Zero Standard (V1.2) and Near-Term Criteria (V5.2), SBTi will develop a detailed transition pathway.
This approach underscores the urgency of climate action while providing companies with the assurance needed to continue setting targets using the existing framework during V2’s development phase.
The consultation period is scheduled from 18 March to 1 June.
