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The Science Based Targets initiative (SBTi) recently released four technical outputs as part of the ongoing revision of its Corporate Net-Zero Standard. This announcement follows the publication of the review timeline and Terms of Reference in May 2024, aimed at ensuring the Standard remains aligned with the latest scientific developments and best practices, particularly for scope 3 emissions.
Scope 3 emissions, accounting for 75{2add217ad2235d262e63a186eb2903fa1b3aade4b9d8db7a510444e5d82aac71} of a typical company’s carbon footprint, present significant challenges and opportunities in corporate decarbonization. As a leading voluntary standard-setter, SBTi is leveraging feedback from businesses with validated targets to develop more effective strategies for addressing scope 3 emissions and enhancing the impact of its Corporate Net-Zero Standard.
Sue Jenny Ehr, Interim CEO of SBTi, stated, “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 decarbonization 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.”
The SBTi’s four newly released technical outputs serve as preliminary steps in the Standard’s review process:
- Scope 3 Discussion Paper: This paper outlines SBTi’s initial thoughts on potential changes to scope 3 target setting, detailing underlying principles and concepts without proposing specific requirements or criteria.
- Evidence on Environmental Attribute Certificates (EACs): A compilation of evidence submitted during an open call from September to November 2023, examining the effectiveness of EACs without SBTi assessment.
- Synthesis Report on EACs – Part 1: Carbon Credits: A report synthesizing evidence on the effectiveness of carbon credits in corporate climate targets, marking the first of three reports as per the Terms of Reference.
- Independent Review of Carbon Credits: A summary of findings from an independent third-party review of peer-reviewed literature on the effectiveness of carbon credits as substitutes for direct emission reductions.
While these publications provide valuable insights, the findings are mixed, indicating a need for further research in subsequent stages of the review process.
The SBTi plans to release a draft Corporate Net-Zero Standard for public consultation by the end of 2024. Contributions from civil society, businesses, and governments are encouraged, and stakeholders are encouraged to share feedback on the scope 3 discussion paper. Feedback will be summarized and considered in the Standard’s development, ensuring data privacy and protection.
Alberto Carrillo Pineda, Chief Technical Officer of SBTi, stated, “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. The SBTi believes that direct decarbonization must remain the priority for corporate climate action and looks forward to the extensive public consultation on the draft Corporate Net-Zero Standard.”