Revising our Corporate Net-Zero Standard: What’s coming up?

What’s happened so far?

The SBTi is undertaking a major revision of our Corporate Net-Zero Standard (CNZS). This update is in line with the regular review cycle, as outlined in our Standard Operating Procedure, which must happen every two to five years.

Since the launch of the Standard, there has been year-on-year growth in both net-zero targets validated and commitments. Now, over two years since its introduction, the SBTi has started work on the first major revision to the CNZS. In May 2024, the SBTi announced the timelines and process for this revision and published its Terms of Reference. The first outputs of this process will be published on Tuesday July 30th 2024.

Where are we now? Research

During the research phase, the SBTi has gathered a wide range of evidence, including that submitted through the open call for evidence. This ensures that the work of the SBTi is informed by the best available evidence. On Tuesday, the SBTi will publish four technical outputs to feed into the development of the draft Standard.

These will comprise:

• Scope 3 discussion paper: A discussion paper setting out the SBTi’s initial thinking on potential changes being explored around scope 3 target setting, including underlying principles and concepts. The discussion paper will be informative by nature and will not propose draft requirements or criteria.

• Evidence received on the effectiveness of Environmental Attribute Certificates: The release of all evidence submitted as part of the open call on the effectiveness of Environmental Attribute Certificates (without SBTi assessment).

• Synthesis report of evidence on the effectiveness of Environmental Attribute Certificates in corporate climate targets – Part 1: Carbon credits: A report presenting SBTi’s synthesis of the evidence submitted through the call for evidence on the effectiveness of carbon credits in corporate climate targets.

  • This is the first of the three distinct reports that will be published as outlined in the Terms of Reference; the reports on the other EAC instruments will be published at a later stage.

• Findings of independent systematic review on the effectiveness of carbon credits in corporate climate targets: A statement will be published summarizing the assessment conducted by an independent third party on peer-reviewed academic literature on the effectiveness of carbon credits when used as a substitute for direct abatement. The statement summarizes the process followed, findings and limitations of this research exercise.

What’s next?

The next major output of the Corporate Net-Zero Standard revision will be the draft Standard for consultation, which is expected by the end of 2024. This will be followed by a public consultation and the SBTi invites all stakeholders to participate in this and contribute their views.

The revised Corporate Net-Zero Standard will come into effect in 2025. No changes to the Standard, nor final decisions regarding its content, will be made before this point. Businesses wishing to set net-zero targets should continue to do so, using the current Corporate Net-Zero Standard v1.2.