SBTi Begins Review of Corporate Net-Zero Standard | Greater Emphasis on Scope 3

The SBTi has now taken a significant step in the fight against climate change by releasing the Terms of Reference for a comprehensive revision of the Corporate Net-Zero Standard. This document provides a clear overview of the objectives, scope, deliverables, preliminary timeline, and ways in which stakeholders can be involved in this revision process. A notable aspect of this update is the increased focus on Scope 3 emissions, which often represent the largest source of emissions for companies.

Importance of Scope 3 Emissions

Scope 3 emissions encompass indirect emissions occurring in a company’s value chain, both upstream and downstream. This category is crucial because it is often the largest and most complex source of emissions, but also the most challenging to quantify and reduce. The SBTi’s emphasis on Scope 3 in the new revision reflects the growing consensus among climate scientists and policymakers that a holistic approach is needed to implement effective climate action.

Goals of the revision

• Alignment with the latest scientific insights: The revision aims to align with the most recent scientific findings and best practices, such as those from the Intergovernmental Panel on Climate Change (IPCC) regarding net-zero commitments. This ensures that the standard remains grounded in the most current and reliable knowledge.
• Addressing challenges with Scope 3 targets: Setting and implementing Scope 3 targets presents unique challenges. The revision aims to address these issues and provide companies with practical guidelines and tools to effectively manage and reduce their Scope 3 emissions.
• Integrating continuous improvement: By integrating continuous improvement and goal achievement, the SBTi aims to help companies not only set ambitious goals but also actually achieve them. This includes monitoring progress and adjusting strategies based on new data and insights.
• Improving structure and interoperability: Improving the structure and interoperability with other SBTi standards and external frameworks is essential to promote consistency and synergy. This helps companies approach their climate goals in a coordinated and integrated manner.

Stakeholder Engagement

A crucial aspect of the revision process is the engagement of various stakeholders. SBTi encourages companies, NGOs, scientists, and other relevant parties to provide feedback via the published Project Feedback Form. This input is essential to ensure that the revision is widely supported and reflects the diverse perspectives and expertise of various stakeholders.

Outlook

The update to the Corporate Net-Zero Standard Version 2.0 marks a significant step forward in global efforts to address climate change. By placing a strong focus on Scope 3 emissions and the other objectives mentioned above, SBTi sets the tone for a more holistic and science-based approach to business-related emissions reduction.

For more information and to follow the progress of this revision, please visit the official website of the Science Based Targets initiative. The involvement of a wide range of stakeholders will play a key role in the success of this ambitious revision and the broader fight against climate change.