The Science Based Targets initiative (SBTi) has released a draft set of new standards, with which it is seeking to address the challenges that businesses face in setting and achieving net-zero targets and tackling Scope 3 emissions.
The SBTi’s revised Corporate Net-Zero Standard, which has been released for public consultation, is ‘informed by the latest climate science, regulation, and recognised standards and frameworks, as well as feedback from businesses about what they need to achieve the collective ambition of a net-zero future’, the SBTi said in a statement.
The challenge of Scope 3
As it notes, more than half of businesses identify Scope 3 as the most significant challenge in reaching net zero, and the new draft proposes increased flexibility through options to set targets focused on green procurement and revenue generation instead of direct emissions reduction.
This proposal aims to focus on sectors and suppliers where emissions are highest and where companies can exert the most influence.
In addition, the new standards explore opportunities to scale carbon removals and mobilise climate finance over and above the requirement for the direct decarbonisation to meet emissions reduction targets; suggests new ways to track and communicate progress against targets; and simplifies requirements for medium-sized businesses in developing markets and for small and medium-sized enterprises, in order to reduce barriers to participation.
‘Frontier of climate action’
“The SBTi has always been at the frontier of climate action,” commented Francesco Starace, chair, SBTi. “The draft standard addresses complex, emerging issues and lays the foundation to enable more companies to move further and faster towards net-zero.
“Working hand-in-hand with stakeholders across the ecosystem to seek and consider a diverse range of views, we aim to produce a standard that is both rigorous and practical, and works for businesses and the planet. With a limited carbon budget left, this is more important than ever. Companies can unlock long-term growth, drive transformation and build investor confidence by acting at pace to accelerate climate action.”
The public consultation will run from Tuesday 18 March to Sunday 1 June, with stakeholders able to find more information in the SBTi’s Consultation Guide, which can be found here. Read more here.
