SBTi Net Zero Standard
Net zero carbon framework informed by climate scienceWhat is the SBTi Net Zero Standard?
The SBTi has launched a Corporate Net Zero Standard, which is the world’s first framework for setting net zero targets in line with climate science. It includes guidance, criteria and robust benchmarks to enable companies to set science-based net zero targets that will contribute directly to limiting global temperature rises. The ambition is to achieve the long-term target of limiting global temperature rises to within 1.5°C by 2050.
Who is it for?
Companies in all sectors, except the oil & gas and public sectors.
What emissions does the Net Zero Standard cover?
Participants need to set reduction targets for Scope 1 (direct emissions from fuel consumption and vehicle fleets) and Scope 2 emissions (energy-related indirect emissions, including emissions from purchased electricity, heating and cooling). They will also need to set targets for Scope 3 (indirect) emissions from their supply chains, if those emissions account for 40% or more of total emissions.
What is the Net Zero Standard process?
1. Set a near-term net zero target:
This five to ten-year emission reduction target must include Scope 1 and 2 emissions, and Scope 3 if these comprise more than 40% of total emissions.
2. Set a long-term science-based target:
This target must reduce emissions to a residual level in line with 1.5°C scenarios by no later than 2050. Most companies will be required to reduce Scope 1 and 2 emissions by 95% and Scope 3 emissions by 90%.
3. Go beyond value chain mitigation:
In the transition to net zero, companies should take action to mitigate emissions beyond their value chains. For example, by purchasing high-quality, jurisdictional REDD+ credits or investing in direct air capture (DAC), geologic storage, forestry projects or renewable energy technologies.
4. Neutralise any residual emissions:
Participants can use carbon removal or storage schemes to offset any residual emissions that cannot be eliminated by other means (the final 5-10%)
What targets must be set under the Net Zero Standard?
Participants must set a near-term net zero target covering emission reductions over five to ten years. The Net Zero Standard recognises that rapid, deep cuts to emissions are the most effective and scientifically proven ways to limit global temperature rises.
Companies will also need to set long-term emissions reduction targets of at least 90 to 95% across all three scopes by 2050. Participants are expected to follow a mitigation hierarchy, committing to reducing value chain emissions before mitigating emissions outside of their value chain. Carbon offsetting can only be used to counterbalance any residual emissions that remain after all other measures have been implemented.
How is the scheme monitored and validated?
Net Zero Standard participants need to report on their progress annually. Targets are reviewed every five years. Progress against targets is externally assessed and validated, either by the SBTi or an accredited consultancy. The SBTi will officially begin to validate Net Zero Standard targets in January 2022.
The benefits of participation in the Net Zero Standard
Other Net Zero Accreditations
There are a number of other internationally recognised standards that organisations can follow to help effectively measure, monitor and reduce carbon emissions.
Read more about these schemes here on the right.
