Corporate Net-Zero Standard revision: SBTi releases new opportunities for stakeholders to input

• The SBTi is establishing Expert Working Groups to consult on five key topics of the revised Standard.

• The process includes two public consultations and pilot testing to ensure that the revision works for businesses and accelerates climate action.

• The first consultation will begin no earlier than March 2025 - all stakeholders are invited to participate.

• During the revision, the current Standard continues to be the most credible and robust way for companies to set net-zero science-based targets.

The Science Based Targets initiative (SBTi) has today announced that it will be seeking additional stakeholder feedback on the revision of its flagship Corporate Net-Zero Standard. New Expert Working Groups and a second public consultation will help ensure businesses and other stakeholders have extensive opportunity to input into the revision. The aim is to create a revised Standard that is effective and actionable, without compromising on ambition.

The establishment of these new mechanisms is important for the SBTi to gather further stakeholder feedback. They build on the stakeholder engagement completed to date, including with the Technical Advisory Group and working sessions with key stakeholders including business, and feedback provided on the Scope 3 Discussion Paper.

The SBTi will release a first draft of the Standard for consultation no earlier than March 2025 and will also carry out pilot testing.

The evolution of the Corporate Net-Zero Standard is at the frontier of best practice while ensuring it is actionable and effective for companies. The revision will introduce clarity on critical areas, including:

• Categorization: To ensure inclusivity and relevance, a new categorization system will tailor requirements based on company size and geography, making the Standard more accessible.
• Progress and transparency: The revised Standard will help companies understand how to credibly report progress against their goals and the process for setting updated targets in line with relevant external requirements.
• Value chain emissions (scope 3): Addressing value chain emissions is one of the biggest challenges in corporate decarbonization. The SBTi is exploring several ways to increase the effectiveness of scope 3 target-setting and implementation. This includes considering a wider set of metrics, methods and tools that companies can use to set targets, report progress and manage emissions in their value chain.
• Neutralization: The revised Standard aims to enhance the approach to addressing residual emissions at net-zero through interim removal targets.
• Interoperability: The relationship to other SBTi standards, such as the upcoming Financial Institutions Net-Zero Standard, and other relevant frameworks, standards, and regulations will be clarified.

The Expert Working Groups will bring together subject-matter experts from across business, civil society and academia to provide in-depth input on key topics to support the revision of the Corporate Net-Zero Standard. The Expert Working Groups will focus on five key themes that are critical to businesses setting effective, practical and ambitious targets:

• Scope 2: Addressing emissions from purchased or acquired electricity to ensure effective decarbonization.
• Scope 3: Target-setting approaches, strategies and interventions for addressing scope 3 emissions.
• Removals: Neutralization and Carbon Dioxide Removal (CDR), particularly regarding removals targets.
• Ongoing emissions and BVCM: Addressing ongoing emissions in the transition to net-zero through Beyond Value Chain Mitigation (BVCM) activities, including the scale of action and allowable measures.
• Data quality, data assurance and claims: Data quality and assurance and substantiation of claims.

Details of how to apply to these groups, and the requirements of the role, can be found in the associated Terms of Reference. Experts are invited to apply by completing this form no later than 11:59 PM PT on Friday February 28, 2025. If you cannot access Google Forms, please email us on standards@sciencebasedtargets.org with the subject ‘EWG application’.

The SBTi plans to publish an initial draft of the Corporate Net-Zero Standard V2 for public consultation for a minimum of 60 days. Consultation is expected to commence no earlier than March 2025, following review and approval by the SBTi’s Technical Council. The feedback gathered from this consultation, along with that from the Expert Working Groups, will be used to refine the draft, after which an amended version will be published for pilot testing and a second public consultation.

In the meantime, companies without near-term or net-zero targets are strongly encouraged to go ahead and set these. Once V2 of the Standard is finalized, the SBTi will ensure there are ways to make commitments under V2 that are consistent with and do not duplicate work for targets set under V1.

The timings for the pilot, second consultation and launch of the final Standard will be released in due course, pending analysis of the stakeholder feedback received in the first public consultation. The SBTi welcomes and encourages all stakeholders to provide feedback through the consultation process. Feedback received from the different mechanisms will be published throughout the process.

The SBTi has released an updated Corporate Net-Zero Standard V2 Project Terms of Reference to incorporate the new feedback mechanisms. The revision of this Standard is being conducted in line with the SBTi Standard Operating Procedure for Development of Standards.

Alberto Carillo Pineda, Chief Technical Officer, SBTi said: “When we launched our first Corporate Net-Zero Standard in 2021, there was no consistent definition of net-zero in corporate climate target-setting. We have come a long way since then - today more than 1500 businesses have net-zero aligned targets. The feedback we have gathered since the release of the first version of the Standard has been invaluable in helping us identify opportunities to strengthen it and make it more practical and effective in driving science-based climate action.”

Tracy Wyman, Chief Impact Officer, SBTi said: “Reaching net-zero is never going to be straightforward. But the guidance to get businesses there should be. The additional consultations announced today will support the development of a revised Corporate Net-Zero Standard that works for businesses and accelerates climate action. We encourage all interested stakeholders to engage with the revision process through these feedback mechanisms and welcome their input to shape the revised Corporate Net-Zero Standard.”