SBTi Advances Corporate Net-Zero Standard with Focus on Scope 3 Emissions

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• SBTi releases four technical publications to refine the Corporate Net-Zero Standard.
• Focus on improving scope 3 emissions strategies, which make up 75% of a company’s footprint.
• Public consultation on draft standards expected by Q4 2024.

The Science Based Targets initiative (SBTi) has released four technical documents, marking an early step in revising the Corporate Net-Zero Standard. This effort aims to enhance strategies for addressing scope 3 emissions, which constitute 75% of an average company’s carbon footprint.

Scope 3 Emissions

A Major Challenge Scope 3 emissions are a significant challenge and opportunity in corporate decarbonization. SBTi’s new publications explore how to better address these emissions, informed by feedback from over 5,000 companies whose targets have been validated by SBTi.

New Technical Outputs

1. Scope 3 Discussion Paper: Outlines potential changes in scope 3 target setting. It is informative and does not propose new requirements.
2. Evidence on Environmental Attribute Certificates: Releases data from an open call for evidence on the effectiveness of these certificates.
3. Synthesis Report on Carbon Credits: Summarizes evidence on the effectiveness of carbon credits in corporate climate targets.
4. Independent Review Findings: Presents an assessment of peer-reviewed literature on the effectiveness of carbon credits as a substitute for direct abatement.

Environmental Attribute Certificates (EACs)

The scope 3 paper presents scenarios where carbon credits might support evidence of decarbonization or offset residual emissions but stresses that credits should not replace direct value chain decarbonization.

Sue Jenny Ehr, Interim CEO, SBTi: “This announcement marks a key step in the revision process for the Corporate Net-Zero Standard. The SBTi’s comprehensive revision will help companies lead on climate action.”

Related Article: 90% of Singapore Companies Not Fully Measuring and Analysing Scope 3 Emissions: Schneider Electric

Alberto Carrillo Pineda, Chief Technical Officer, SBTi: “Today’s outputs are crucial for developing a sophisticated approach to scope 3, prioritizing direct decarbonization and preparing for extensive public consultation.“

A draft Corporate Net-Zero Standard will be released for public consultation by Q4 2024. Stakeholders are encouraged to provide feedback on the scope 3 discussion paper via the provided form.