Detailed analysis of the new SBTi corporate net-zero standard consultation and its implications

An exclusive look at what the new standard means for target-setters and corporate commitments including a comparison of the old and new standard.

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The Science-Based Targets Initiative's Net-Zero Overhaul: What Businesses Need to Know

The Science-Based Targets Initiative (SBTi) has unveiled a significant update to its Corporate Net-Zero Standard (Version 2.0), introducing a broader scope, stricter governance, and new flexibility in setting emissions targets. As businesses worldwide navigate increasing scrutiny on their sustainability commitments, understanding these changes is crucial.

Why the Overhaul?

SBTi's framework has become the gold standard for corporate net-zero strategies, guiding over 3,000 companies in aligning their emissions reduction plans with the 1.5°C global warming threshold. However, challenges around Scope 3 emissions, target validation, and accountability have led to concerns from corporations and stakeholders. The newly proposed Version 2.0 seeks to address these gaps by refining the methodology and strengthening compliance measures.

Key Changes in Version 2.0

1. A More Comprehensive Scope

Previously, the SBTi primarily focused on target-setting. The revised standard now extends to base-year performance assessment, implementation, and tracking progress. This shift means companies will need to not only set ambitious targets but also demonstrate measurable progress over time.