SBTi expands revisions to Corporate Net-Zero Standard to refine neutralisation approach
September 20th, 2024
The Science Based Targets initiative (SBTi) has broadened its revisions of the Corporate Net-Zero Standard to refine its approach to neutralisation.
The Corporate Net-Zero Standard provides companies with guidance and tool to help them set science-based net-zero targets.
It also specifies that once companies have achieved their long-term emission reduction target, they must neutralise any remaining emissions by permanently removing and storing CO2 from the atmosphere.
However, the SBTi is currently revising its 2021 standard and has released an updated project terms of reference with minor adjustments, including a new focus on improving the neutralisation approach.
As part of the revision, the SBTi aims to clarify the near-term steps companies can take towards the long-term outcome of counterbalancing the impact of scientifically defined residual emissions.
The SBTi will hold workshops to guide the revisions, aiming to gather insights that will shape its research on neutralisation and the role of carbon dioxide removal and storage as companies work towards their net-zero target date.
The decision to refine the Corporate Net-Zero standards’ approach to neutralisation comes as the SBTi undergoes a major revision of the standard, following its Standard Operating Procedure, which requires reviews every two to five years.
In addition to refining its approach to neutralisation, the SBTi said its goals for the review of the standard include aligning the standard with the latest scientific thinking and best practices, such as guidance from the IPCC and the UN Secretary General’s High Level Expert Group on the net zero emissions commitments of non-state entities.
It also aims to address challenges related to Scope 3 target setting and implementation, and to integrate continuous improvement and target delivery as well as improve the structure and interoperability with other SBTi standards and relevant external frameworks.
The revised Corporate Net-Zero Standard will come into effect in 2025.
Last Updated: 20 September 2024