SBTi proposes updates to Corporate Net-Zero Standard framework

March 21, 2025

The Science Based Targets initiative (SBTi) has released a draft update to its Corporate Net-Zero Standard, introducing proposed measures to accelerate corporate decarbonisation.

The draft standard introduces proposed updates to its core framework for assessing, certifying and tracking corporate decarbonisation commitments to ensure alignment with science-based climate targets on the path to net-zero emissions.

The updates include separating Scope 1 and Scope 2 emissions to reflect the unique challenges of decarbonising each category.

The draft also introduces new approaches for addressing Scope 3 emissions, as over half of businesses surveyed by the SBTi cited this as the most significant challenge in net-zero target setting.

To provide greater flexibility, it proposes allowing companies to set targets for green procurement and revenue generation instead of solely relying on emissions reduction targets.

By prioritising direct suppliers and emissions-intensive sectors, the proposal aims to drive action in the areas with the highest emissions and those where companies have the highest influence.

The amendments also introduce a requirement for assessing and reporting progress against targets, which aims to strengthen accountability and recognise companies leading in decarbonisation.

In addition, the standard now includes simplified requirements for medium-sized companies in developing markets and SMEs through the introduction of streamlined requirements reflective of capabilities and resources. This streamlined approach aims to encourage broader corporate climate action.

The updates to the framework aim to maintain focus on emissions reduction while introducing incentives to support scaling of finance and carbon removals. They also seek to simplify target-setting for companies in emerging economies as well as incentivise ambition and action.

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