How It’s Made: An SBTi Standard
9th Jul 2024
The SBTi has a step-by-step process for developing standards. Only when this process has been completed can a standard be released for businesses to set science-based targets against. Alberto Carrillo Pineda, SBTi’s Chief Technical Officer, outlines the eight stages.
The SBTi is transforming from an initiative into a formal voluntary standard-setter. Over the past two years, we have implemented a series of changes to strengthen our technical and wider governance and procedures with the aim of ensuring our operations are in line with best practice for standard setting organizations.
Among these is the Standard Operating Procedure (SOP) for Development of SBTi Standards, which details how SBTi standards must be developed or revised. From the identification of project need through to approval, implementation and monitoring, the SOP outlines the involvement of all relevant parties and stakeholders in the development process, including but not limited to:
SBTi Technical Department | The department in the SBTi which manages all technical work, including carrying out and commissioning or undertaking research, developing standards and creating our technical resources. |
The SBTi leadership team is responsible for implementing the SBTi’s strategy and for the day-to-day running of the initiative. | |
The Technical Council is an independent body which oversees the SBTi’s normative technical decision-making and acts as an independent authority to provide expert assessment, including on target setting methods. | |
The Board of Trustees has overall responsibility for the governance of the SBTi. |
The SBTi’s SOP for Development of SBTi Standards was approved in December 2023. The major revision of the Corporate Net-Zero Standard is being developed in accordance with the SOP. The SBTi will also seek to adhere to SOP requirements where possible for other normative instruments including methods, guidance, criteria, pathways and tools that started development before the adoption of the SOP. These instruments will follow the SOP upon their next revision.
As is the case with all SBTi resources, the SOP will be updated over time in line with best practice.
The Stages of Development
Here is an overview of the eight stages of project development outlined in the SOP:
1. Project Request
Project requests, including revisions or new standards, can be submitted by any stakeholder through processes outlined in the SOP, or can occur as part of the SBTi’s regular standard revision cycle. The relevant Technical Heads will evaluate the request, including for strategic alignment, impact, risks, feasibility and more. Once the necessary resource is established for a project, the Chief Technical Officer (CTO) will approve minor projects, while the CTO consults with the ELT to approve major projects.
Major projects are those that involve:
- Developing a new standard.
- Revisions that significantly impact the manner in which entities conform with that standard.
- Significant risk.
Minor projects are those that involve:
- Revisions or clarifications to a standard that do not significantly impact the manner in which entities conform.
- No significant risk.
2. Project Initiation
Once a Project Request is approved, the SBTi Technical Department creates an internal-facing Project Initiation Document (PID) to outline the scope of work, and submits it to the ELT for approval. For major changes to a Standard, a feasibility study may be needed to expand upon the evaluations made while assessing the project request. Once the details are confirmed, a Terms of Reference is shared with the Technical Council for information and published on the SBTi website.
3. Research
The Technical Department oversees the research necessary to develop or revise a Standard. This work may be delivered in-house or commissioned to other entities with the relevant skills and experience. The Technical Department may also produce or compile internal or external research papers and outputs. This will be outlined in the Terms of Reference.
4. Drafting
New or revised SBTi standards will be drafted in accordance with the requirements in the SOP. The standards will describe adherence to applicable laws and regulations, objectives, scope and a general description of the process for validation. Standards will be drafted so that conformity with the standard can be assessed for any entity within the scope of the SBTi Standard. The SBTi may also produce explanatory documentation to support consistent interpretation and implementation of the standards’ requirements.
5. Consultation
Once the Technical Council has approved a draft standard for publication, a public consultation will commence for no less than 60 days. For new standards development, a second public consultation round of consultation of at least 45 days is required. After feedback is collected and revisions are made, further public consultation may occur at the discretion of the SBTi Technical Department.
The SBTi may also issue a public call for relevant companies to voluntarily pilot test the draft standards. Inputs from pilot testing will further inform any adjustments to the draft, if needed.
SBTi may also set up an advisory group (e.g., Expert Advisory Group) to consult and provide expert advice throughout the project's development.
6. Approval
When the final draft of a standard is produced, the project team develops a Basis for Conclusions report, which highlights all elements of development thus far. The report is submitted to the Technical Council along with the final draft for consideration and approval.
If the Technical Council does not approve the standard, then it will document its concerns and the actions it considers necessary, and the process of revision recommences.
Once the Technical Council approves the standard, the CEO and CTO on behalf of the Technical Council submits it to the Board for consideration and formal adoption.
If the Board determines that the SOP has not been adhered to or that the proposed Standard is not aligned to SBTi’s mission, vision and strategic goals, it shall document its concerns and specify what actions it considers necessary. The Board will communicate this to the Technical Council’s Chair and Vice Chair. The Chair and Vice Chair will then determine with the CTO what actions should be taken on a case-by-case basis, in alignment with the requirements of the SOP.
7. Implementation
After adoption by the Board of Trustees, the Standard is prepared for publication to the website and announced to the public, along with any relevant transition timelines. For revisions, the Technical Department will also prepare a ‘main changes document’ outlining the changes made. This is sent directly to stakeholders or posted on the SBTi website. The SBTi will then host training across relevant stakeholder groups and regions to ensure that the standard is well received and implemented.
8. Monitoring & Evaluation
Once a standard is published, stakeholders may send proposals and feedback through the Project Feedback Form. The Technical Department will continuously collect input from stakeholders for the next scheduled revision of the standard.
More detail on each of these steps, can be found on pages 6-16 of the SOP. You can follow along as we continue developing new and updated SBTi standards on LinkedIn, X (formerly known as Twitter) and by signing up for our newsletter.
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