The Science-Based Targets Initiative (SBTi) continues to evolve. Last week, the organization released its highly anticipated “Corporate Net-Zero Standard V2.0.” This marks a substantial update to SBTi’s methodology and approach. SBTi summarizes the key changes coming with 2.0 in a recent press release:
- “Differentiated approaches across markets: The Corporate Net-Zero Standard V2.0 includes accommodations for small and medium-sized enterprises, and companies in lower-income countries.
- Set actionable, context-specific targets: Companies set targets that reflect their opportunities to reduce emissions in different contexts, including capital stock, supply/ value chains, sectors, and geographies. It also strengthens the link to transition planning. Companies set two or more near-term targets and can choose to set an overarching net-zero target.
- Act transparently on a best-efforts basis: Targets are pursued on a best-efforts basis, with transparency over key assumptions and dependencies. Companies are expected to use all available levers to reduce emissions, address any implementation barriers and transparently report on them.
- Mobilize all available levers to deliver emissions reductions: The Corporate Net-Zero Standard V2.0 introduces an implementation hierarchy that prioritizes actions, from those directly reducing emissions in company operations and value chains to broader activity pool and sector-level actions where appropriate. These may be supported by market instruments such as energy attributes and commodity certificates based on different chain-of-custody models (e.g., mass balance, book-and-claim), subject to guardrails.
- Continuously assess, disclose, and strengthen progress: A process of annual reporting and periodic assessment of progress, barriers to implementation, and actions to address these; and for setting new targets before or at the end of a cycle – including where there are gaps between emissions and targets – to ensure ongoing alignment with netzero pathways. Through this continuous improvement process, companies can continue progressing within the SBTi framework toward net-zero.
- Maintain ongoing emissions responsibility: The Corporate Net-Zero Standard V2.0 takes a balanced approach to the use of high-integrity carbon credits and other climate contributions as a complement and not a substitute to companies reducing their carbon footprint, through a voluntary recognition program.”
Our members can learn more about emissions reductions here.
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