Corporate Net-Zero Standard V2 Second Public Consultation
Explore the second draft of the Corporate Net-Zero Standard V2 with our digital consultation guide.
Explore the draft standard
- 01 Getting started
- 02 Take part in the public consultation
- 03 Key elements at a glance
- 04 Key resources
- 05 Draft Standard Chapter 1: Net-Zero Ambition
- 06 Draft Standard Chapter 2: Base Year Assessment
- 07 Draft Standard Chapter 3: Target Setting
- 08 Draft Standard Chapter 4: Taking Responsibility for Ongoing Emissions
- 09 Draft Standard Chapter 5: Assessing Performance and Renewing Targets
- 10 Draft Standard Chapter 6: SBTi Claims
- 11 Frequently asked questions
Draft Standard Chapter 4: Taking Responsibility for Ongoing Emissions
Background
Companies will continue to emit greenhouse gases on the path to net-zero. By taking responsibility for these ongoing emissions, they can help limit temperature overshoot, reduce transition risks, and support climate solutions. To encourage this, the SBTi is launching an optional recognition program for ongoing emissions responsibility.
The current body of scientific evidence indicates that to achieve global climate objectives consistent with limiting warming to 1.5°C, the rate of carbon dioxide removals through to the end of the century should be at least 40% of the level of cumulative emissions. This reflects the balance between the global carbon removal budget and projected cumulative emissions under the most stringent IPCC scenarios. The understanding of the required scale and mix of mitigation outcomes, including the balance between short- and long-lived removals, may evolve with advances in climate science and as updated climate scenarios reflect observed global emissions trends. The SBTi will publish a technical note detailing the scientific rationale underlying the ongoing emission recognition framework, which will be reviewed and updated as the underlying science develops.
Taking responsibility for ongoing emissions will remain optional until 2035, after which Category A companies will be required to take increasing responsibility for these emissions. By their net-zero year, all companies shall neutralize 100% of their residual emissions or, in the case of indirect value chain emissions, ensure that they are neutralized by value chain counterparties.
Companies take responsibility for the impact of their ongoing emissions as they transition to net-zero and neutralize the impact of their residual emissions by their net-zero target year and thereafter.
View the consultation draft criteria and recommendations below, or download the full consultation draft. You may then respond to the consultation survey.
Draft criteria and recommendations
Ongoing emissions responsibility disclosure (CNZS-C22)
The updated draft Standard introduces an optional recognition program for companies taking responsibility for the impact of their ongoing emissions—that is, the emissions across all scopes that continue to be released as companies work to achieve their targets. CNZS-C22 requires all companies to disclose whether or not they plan to participate, the extent of their participation (e.g., the percent of ongoing emissions they plan to take responsibility for), or their rationale for not participating.
4.2 Optional recognition program (CNZS-C23 through C27)
Section 4.2 details the requirements for participating in the optional recognition program, which was designed in response to stakeholder feedback, and a thorough assessment of the economic feasibility of interim removal targets.
The proposed ongoing emissions framework provides companies with the opportunity to take early, ambitious action while minimizing barriers to entry. The draft Standard outlines eligibility requirements, levels of recognition, eligible mitigation activities, and reporting and claims requirements. It also sets criteria to ensure participating companies do not count the resulting mitigation activities towards their value chain targets or allow other entities to claim them.
4.3 Post-2035 responsibility requirement (CNZS-C28)
While the recognition program will remain optional in the near-term, the updated draft Standard requires all Category A companies to begin to take responsibility for ongoing emissions no later than 2035 and increase coverage to 100% of ongoing emissions by 2050. It also includes clear requirements on eligible activities and storage requirements, and provides recognition for companies that go beyond minimum requirements.
Neutralization and state of net-zero (CNZS-C29)
The updated draft Standard maintains that all residual emissions must be neutralized from 2050 and onward. It includes new details on the minimum amount of removals that must be stored in long-term reservoirs, and differentiates between how companies must neutralize scope 1 and 3 emissions. All removals used to neutralize residual emissions at the net-zero target year and thereafter must meet relevant integrity principles. The draft Standard introduces illustrative, provisional high-level principles.