SBTI Establishes Certification Standard for Science-Based Net Zero Targets
The Science Based Targets initiative (SBTi) has introduced the world's certification standard for companies' net zero targets, aligning their decarbonization strategies with the 1.5°C limit of the Paris Agreement.
Developed in consultation with an independent Expert Advisory Group (EAG), the standard underwent a trial involving over 80 companies in August this year. The official validation process is scheduled to launch next year. In a pilot scheme, the SBTi has already certified the net zero targets of five firms: CVS Health, Dentsu International, JLL, Wipro, and Ørsted.
Under the standard, companies are required to set science-based targets for the near and long term, covering a range of scopes. This includes near-term targets for the next 5-10 years and longer-term targets up to 2050. The SBTi emphasizes that science-based net zero targets entail achieving deep decarbonization of 90-95% by 2050, followed by offsetting and removals to neutralize unavoidable emissions. Importantly, the standard sets a limit of 5-10% for carbon offsetting and removals, though this varies by sector. The aim of the standard is to provide credible and independent assessment of net zero ambitions, avoiding self-defined targets.
Over 300 companies have committed to reaching science-based net zero targets before 2050 through the SBTi's Business Ambition for 1.5°C campaign. The SBTi is also working on developing metrics for net zero in the financial sector, while the UN Environment Programme Finance Initiative (UNEP FI) has published recommendations for financial institutions to achieve net zero. Additionally, a net zero transition plan has been released for pension providers, urging financial institutions to align with science-based targets, halt new fossil fuel developments, transparently report emissions, account for Scope 3 emissions, and highlight emerging technologies for low-carbon transitions.
