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Posted 7 months ago | 2 minute read
SBTi to revise Corporate Net-Zero Standard
The Science Based Targets initiative (SBTi) launched the Terms of Reference for the revision of the Corporate Net-Zero Standard. The Terms of Reference, published on 9 May, detail the objectives, scope, deliverables, provisional timeline, and engagement opportunities during the standard revision process.
The SBTi outlines four key goals for the revision of the Corporate Net-Zero Standard
- to align with the latest scientific thinking and best practice, such as from the IPCC and the UN Secretary General’s High Level Expert Group on the net zero emissions commitments of non-state entities
- to address challenges related to scope 3 target setting and implementation
- to integrate continuous improvement and target delivery
- to improve structure and enhance interoperability with other SBTi standards as well as other relevant external frameworks and standards
The SBTi states that as part of the revision process, it is performing an evaluation of the effectiveness of environmental attribute certificates in corporate climate targets. The SBTi stresses that any decisions on changes to the standard will follow a strict process of research, consultation, pilot testing, approval by the technical council, and adoption by the SBTi board of trustees.
The SBTi is set to release a scope 3 discussion paper in July 2024, which will set out its initial thinking on potential changes around scope 3 target setting, including on underlying principles and concepts.
It is also expected to publish its ‘Assessment of Evidence on the Effectiveness of Environmental Attribute Certificates in Corporate Climate Targets’, which will present the SBTi’s assessment of the evidence received on the effectiveness of carbon credits in corporate climate targets. It is noted that potential changes to the standard as a result of the paper will be assessed through a feasibility study.
In Q424, the SBTi expects to issue the public consultation on the draft Corporate Net-Zero Standard 2.0. The feedback received from the consultation will be made public and used to inform the development of the standard.
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