The Net-Zero Standard
The SBTi’s Net-Zero Standard provides the guidance and tools companies need to set science-based net-zero targets.
"The Net-Zero Standard gives companies a clear blueprint on how to bring their net-zero plans in line with the science, which is non-negotiable in this decisive decade for climate action. Because we are running out of time." Johan Rockström Director of the Potsdam Institute for Climate Impact Research (PIK) and Professor in Earth System Science at the University of Potsdam
The SBTi’s Corporate Net-Zero Standard is the world’s first framework for corporate net-zero target setting in line with climate science. It includes the guidance, criteria, and recommendations companies need to set science-based net-zero targets consistent with limiting global temperature rise to 1.5°C.
The Net-Zero Standard provides a common, robust, and science-based understanding of net-zero. It gives business leaders clarity and confidence that their near- and long-term targets are aligned with climate science - helping to ensure a habitable planet for all.
Development of the Net-Zero Standard followed a thorough, inclusive, and transparent process. Input and expertise was provided by a diverse range of stakeholders and with close consultation from an independent Expert Advisory Group formed of experts from academia, civil society, science and business.
The SBTi is also developing the first global standard for net-zero targets in the financial sector.
Key requirements of the Net-Zero Standard
- Focus on rapid, deep emission cuts: Rapid, deep cuts to value-chain emissions are the most effective, scientifically-sound way of limiting global temperature rise to 1.5°C. This is the central focus of the Net-Zero Standard and must be the overarching priority for companies. The Net-Zero Standard covers a company’s entire value chain emissions. Most companies will require deep decarbonization of at least 90% to reach net-zero under the Standard
- Set near- and long-term targets: Companies adopting the Net-Zero Standard are required to set both near-term and long-term science-based targets. This means making rapid emissions cuts now, halving emissions by 2030. By 2050, organizations must produce close to zero emissions and will neutralise any residual emissions that are not possible to eliminate
- No net-zero claims until long-term targets are met: A company is only considered to have reached net-zero when it has achieved its long-term science-based target. Most companies are required to have long-term targets with emission reductions of at least 90% by 2050. At that point, a company must use carbon removals to neutralize any limited emissions that cannot yet be eliminated
- Go beyond the value chain: The SBTi recommends companies to go further by making investments outside their science-based targets to help mitigate climate change elsewhere. There is an urgent need to scale up near-term climate finance; however, these investments should be in addition to deep emission cuts, not instead of them. Companies should follow the mitigation hierarchy, committing to reduce their value chain emissions before investing to mitigate emissions outside their value chains
Key strengths of the Net-Zero Standard
- Completeness: The target covers all material sources of emissions across company value chains
- Early Action: The near-term target delivers short-term action in line with climate science
- Ambition: The target leads to mitigation consistent with limiting warming to 1.5°C in line with robust climate scenarios
- Timeframe: The target aims to reach net-zero within a timeframe by 2050 at the latest, consistent with limiting warming to 1.5°C
- Accountability: The target will be subject to a robust and independent accountability framework
Support for the Standard
The Net-Zero Standard is endorsed and supported by some of the world’s foremost organizations and individuals working in sustainability, scientific, governmental and not-for-profit sectors.
"We need bold but credible net-zero plans from companies. If you are a business leader who wants to walk the talk, I encourage you to align your company's climate strategy with what is required by science.” Mads Nipper CEO, Ørsted,
Emma Watson, the SBTi's Senior Manager for Net-Zero, explains the key features of the Net-Zero Standard.
Development of the Net-Zero Standard followed a thorough, inclusive, and transparent process. This emphasizes input and expertise from a diverse range of stakeholders and close consultation with an independent Expert Advisory Group formed of experts from academia, civil society, science and business.
Why set a science-based net-zero target?
Net-zero has rapidly moved to the mainstream, covering 91% of GDP and 83% of emissions worldwide. Despite this explosive growth, the definition of net-zero itself, as well as the path to get there, has been interpreted in different and inconsistent ways.
Without a common definition, targets can differ in terms of the sources of emissions included, the depth and speed at which emissions are reduced, and the timeframe of the target. This has fuelled confusion and accusations of greenwashing. The Net-Zero Standard addresses this problem by providing a clear, science-based definition of net-zero.
The Net-Zero Standard was developed with the intention of guiding corporate transition towards a state of net-zero in a way that is consistent with societal climate and sustainability goals and within the biophysical limits of the planet.
Who can set a net-zero target?
The Net-Zero Standard is intended for corporates with more than 500 employees that wish to commit to setting net-zero targets through the SBTi.
The SBTi also offers a simplified route for SMEs to set net-zero targets, who should refer to the SME FAQ for more information and use the SME target setting system when ready to set net-zero targets.
This Standard does not cover net-zero targets for financial institutions. The SBTi’s financial sector project has a separate net-zero framework for financial institutions.
How to set a net-zero target
Corporates follow the SBTi’s established target-setting process to commit to and set science-based targets.
Companies are invited to commit to set net-zero targets by signing the SBTi Commitment Letter. The SBTi began validating targets in January 2022. To submit your net-zero target for validation, please use the SBTi Target Validation booking system, or for SMEs, use the streamlined SME target setting system.
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Resources
To support the target-setting process, the SBTi has developed key guidance materials. These were drafted, tested, and refined in collaboration with our partners and contributors from the scientific, business and civil society community.
Contact
To find out more about the Net-Zero Standard, email [email protected] or sign up to receive our net-zero email updates.
