The SBTI will publish a draft Corporate Net-Zero Standard “towards the end of Q4 2024” for public consultation. The organisation plans to publish a summary of the feedback it receives. Credit: Shutterstock

The SBTI’s latest paper said its review of third-party studies into the use of carbon offsetting in Scope 3 suggests that “various types of carbon credits are ineffective in delivering their intended mitigation outcomes”.

The SBTI’s paper also said evidence suggests that the use of carbon credits could also risk undermining efforts towards increasing climate finance.

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However, the SBTI added: “While the evidence submitted and examined reveals some trends and provides insights, the findings of the publications are mixed and further work is needed in the next stage of the process to draw conclusions.”

The SBTI will publish a draft of its new Corporate Net-Zero Standard “towards the end of Q4 2024” for public consultation. The organisation also plans to publish a summary of the feedback it receives.

SBTI’s chief technical officer Alberto Carrillo Pineda said in a statement: “The outputs released today are a critical step in understanding how the SBTI can develop a more sophisticated approach to Scope 3 to help more businesses set targets.

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“The SBTI believes that direct decarbonisation must remain the priority for corporate climate action and looks forward to the extensive public consultation on the draft Corporate Net-Zero Standard.”

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Interim CEO Sue Jenny Ehr added: “Today’s announcement marks a key step in the revision process for the Corporate Net-Zero Standard. Over the last decade, the SBTI has validated the targets of over 5,000 companies with another 3,000 companies having committed to submit targets for SBTI validation.

“Targets are the first step to decarbonisation and it is important that the SBTI conducts a comprehensive process to revise the Standard to help companies take the lead on climate action and drive down emissions.”

Earlier this year, the SBTI sparked a backlash when it announced plans to allow companies to use carbon credits to offset emissions from their supply chains.

A spokesperson for SBTI previously told Just Style that it welcomes feedback “from all stakeholders”.

In a statement, it said: “We are currently in the research phase of this revision. The research findings will feed into the drafting of the revised Standard. After drafting, there will be a public call for consultation.

“We encourage all companies, stakeholders, duty bearers and interested parties to feed into this consultation process. All feedback received will be considered as part of the consultation inputs into the Standard draft.”