Corporate Net-Zero Standard Version 2.0 Public Consultation
Explore the initial draft of the Corporate Net-Zero Standard Version 2.0 with our digital consultation guide.
Explore the draft standard
- 01 Getting started
- 02 Take part in the public consultation
- 03 Key features at a glance
- 04 Draft Standard Chapter 1: Corporate Net-Zero Commitment
- 05 Draft Standard Chapter 2: Determining Performance in the Target Base Year
- 06 Draft Standard Chapter 3: Target-Setting
- 07 Draft Standard Chapter 4: Addressing the Impact of Ongoing Emissions
- 08 Draft Standard Chapter 5: Assessing and Communicating Progress
- 09 Draft Standard Chapter 6: SBTI Claims
- 10 Project documentation
- 11 Frequently asked questions
Draft Standard Chapter 1: Corporate Net-Zero Commitment
Background and key concepts
Corporate net-zero commitments play an important role in ensuring that companies demonstrate leadership by embedding climate ambition into their core operations. To date, most companies have started the science-based target-setting process by submitting a commitment letter to the SBTi in which they pledge to set science-based targets within 24 months. Companies can also submit targets immediately.
This draft standard proposes to replace the current commitment letter with a more robust commitment process. This process requires companies to publicly state their intentions to achieve net-zero emissions before mid-century and set science-based targets aligned with this ambition within 12 months for Category A companies and 24 months for Category B companies. By making public net-zero commitments, companies signal their accountability and ambition to play their part in achieving global climate goals.
Effective commitments are backed by robust governance structures, transparent progress reporting and the alignment of key business processes. The draft also proposes that companies publish climate transition plans within 12 months following validation of their targets by the SBTi, subject to the consultation process.
This chapter outlines the foundations of corporate net-zero commitments and highlights the importance of embedding these commitments across all aspects of business operations, from senior leadership accountability to detailed transition planning. They require companies to more clearly and uniformly demonstrate their intentions and plans to back up net-zero targets. Our aim is that these proposals align with emerging best practices, including those developed by the UN HLEG, the UN Race to Zero and the Climate Action 100 Framework.
Draft criteria and recommendations
Companies make a public commitment to achieve net-zero GHG emissions by no later than 2050. The commitment signals climate ambition to internal and external stakeholders and informs the companies’ business strategy, targets, actions, investments and conduct in the near- and long-term.
1.1 Company-wide commitment to net-zero
To date, most companies have started their science-based target-setting journey by submitting a letter to the SBTi in which they committed to setting science-based targets within 24 months. This commitment is then displayed on the SBTi website on the Target Dashboard, where the company is recognized as "Committed".
In line with emerging best practice, including the recommendations from the UN High-Level Expert Group (HLEG) on Net-Zero and the UN Race to Zero criteria, the current commitment process will be replaced by a more robust commitment process that is a formal aspect built into the validation model. This updated process will require companies to publicly state their intention to both reach net-zero emissions and set science-based targets aligned with this ambition by the time of the Entry Check assessment.
Companies develop detailed transition plans outlining the governance, actions, policies and resources necessary to achieve science-based targets and reach net-zero emissions.
1.2 Transition plan
In line with emerging best practice and evolving voluntary and regulatory frameworks, this standard requires companies to publicly report transition plans within 12 months of target validation. The SBTi does not intend to set detailed requirements for the contents of transition plans or to develop guidance on this subject. Validation will be limited to the requirements in this standard, and this standard will instead refer to other frameworks that companies can use when developing transition plans. As per recommendations from the UN HLEG, the UN Race to Zero criteria and the Climate Action 100 Framework, this standard proposes a recommendation for companies to ensure coherence between their public net-zero commitment and their engagement in relevant climate policy. The SBTi is consulting on whether this recommendation should instead be a requirement within this standard.