Science-Based Targets Initiative sets out corporate net-zero revamp

Science-Based Targets Initiative, the climate-certification body, has published the long-awaited changes to its net-zero requirements, arguing the new standard will better reflect “operational realities” facing companies.

Set up a decade ago, London-based SBTi sets out to provide a framework for companies to devise their net-zero emissions targets.

In 2024, the organisation was embroiled in a row over plans to review its policy on allowing businesses to use offsets in their efforts to curb emissions. Three months after the dispute became public, SBTi announced the departure of then CEO Luiz Fernando do Amaral, citing “personal reasons”.

In March last year, the SBTi opened up a series of proposed changes for consultation and, 14 months on, today (11 June) published its “corporate net-zero standard V2.0”, which it told Just Food “translates climate science into commercially relevant, actionable pathways for decarbonisation”.

Asked if the new standard allows companies to use offsets to help achieve their targets on emissions, the SBTi said: “No, the SBTi’s position remains unchanged: fast and deep value-chain decarbonisation must be front and centre.”

It added: “The revised standard introduces options on how investment in permanent carbon removals and related carbon credits can complement corporates’ efforts to reduce their own carbon footprint but importantly clarifies that they should never be a substitute for this and do not count toward target progress.”

After feedback during the consultation process, the SBTi has introduced an “ongoing emissions responsibility framework”. According to the SBTi, the framework is “a new recognition mechanism for supplementary action, while companies are still reducing their own emissions”.

It said: “The SBTi recognises that removals must be scaled to enable long-term neutralisation of residual emissions at the net-zero target year.

“Under this framework, companies may contribute by supporting verified mitigation outcomes – i.e., reductions, avoidance, or removals – and/or by deploying contributions towards other climate actions: for example, towards research and development, adaptation, loss and damage. These actions are reported separately and do not count toward achieving a company’s science-based targets.”

The new standard will see targets set on what the SBTi called “a best-efforts basis”, which will be “subject to uncertainties and dependencies, with the expectation that companies use all levers to meet them and are fully transparent about implementation progress”.

The changes also include the introduction of targets for companies “in different contexts”, the SBTi said, including sectors, geographies and “legacy capital stocks”.

“The SBTi recognises that companies vary significantly in size, location, resources and capacity,” the organisation said. The new standard “is designed to be practical and accessible for companies operating in different contexts”.

Companies are classified in two categories using revenue thresholds and The World Bank’s income categories for the country in which they operate – and, based on their classification, then have different requirements to meet.

Businesses will also be able to follow an “implementation hierarchy” to help guide the actions they take to work towards their targets, the SBTi said.

The SBTi told Just Food: “The new standard responds to what we’ve heard from business: the need for a more nuanced standard that reflects the operational realities across sectors, geographies and company sizes while maintaining scientific rigour and credibility.”

“Science-Based Targets Initiative sets out corporate net-zero revamp” was originally created and published by Just Food, a GlobalData owned brand.