The Science Based Targets initiative (SBTi) announced the organization published a draft of its revised corporate net-zero standard.

The draft seeks to increase corporate decarbonization by:

• Tackling barriers to Scope 3 or value chain action – the most commonly cited challenge by businesses
• Maintaining focus on emissions reduction while exploring incentives to support scaling of climate finance and carbon removals
• Making it easier for companies in emerging economies to set targets
• Incentivizing ambition and action through new model to validate and recognize progress against targets

There are currently 3,000 businesses globally with net-zero targets or those which have committed to set them. 

The SBTi is giving businesses and other stakeholders the opportunity to provide  feedback on the proposals. The deadline for comments is June 1.

The key areas of proposed revision include:

Focus on action – the draft standard splits out Scope 1 and Scope 2 emissions to reflect the unique challenges decarbonizing each of these categories. Proposals include a commitment to move to low-carbon electricity no later than 2040.

New options for tackling Scope 3 emissions reductions – the draft standard proposes increased flexibility through options to set targets for green procurement and revenue generation, instead of setting an emissions reduction target. In focusing on direct suppliers and/or those in emissions-intensive sectors to align with net-zero, this proposal intends to focus action in the most emission-intensive activities and those where companies have the highest influence.

Opportunities to scale carbon removals and mobilize climate finance above and beyond the requirement for the direct decarbonization to meet emissions reduction targets – the draft standard sets out options for consideration to address unabated and residual emissions. This includes looking at formally recognizing companies which are investing in Beyond Value Chain Mitigation (BVCM) and the introduction of interim carbon removal targets.

Tracking and communicating progress against targets – the draft standard introduces an assessment and communication of progress against targets requirement, to enhance accountability and recognize companies leading on decarbonization.

Simplified requirements for medium-sized companies in developing markets and SMEs – through the introduction of streamlined requirements reflective of capabilities and resources, providing a springboard for universal voluntary corporate climate action