The Science Based Targets initiative (SBTi) Corporate Net-Zero Standard (Version 1.2, 2024) serves as a crucial guide for companies aiming to align their greenhouse gas (GHG) emissions reduction efforts with global climate goals. Here's a detailed look at the key sections and their implications for setting ambitious, science-based targets:

net zero standard framework

This section establishes the structure for setting comprehensive science-based targets, which includes:



Near-term Science-based Targets: Companies must set 5–10-year GHG mitigation targets consistent with limiting global warming to 1.5°C. These targets serve as immediate action milestones, critical for maintaining the global emissions budget.

Long-term Science-based Targets: These targets define the required reduction in value chain emissions by 2050 or sooner, aligning with net zero emissions in 1.5°C pathways. They ensure long-term business planning aligns with global climate goals.

Neutralisation of Residual Emissions: Any remaining emissions after achieving long-term targets must be neutralised, typically through credible carbon removals, ensuring a company's net zero claim is robust and meaningful.

Beyond Value Chain Mitigation: Companies are encouraged to engage in mitigation efforts beyond their immediate value chain to contribute to global decarbonisation efforts, although this is not a substitute for direct emissions reductions.

MITIGATION PATHWAYS

This part delves into the scientific basis for target setting, emphasising:

Scientific Foundation: The necessity for targets to be rooted in climate science, ensuring they contribute effectively to limiting global warming to 1.5°C.



Pathway Utilisation: How different mitigation pathways, both cross-sectoral and sector-specific, inform the setting of credible, achievable targets.

PROCESS TO SET SCIENCE-BASED TARGETS

A crucial section providing a methodology for target setting, including:

Base Year Selection: Companies must choose an appropriate base year for tracking emissions reductions, ensuring data accuracy and representativeness.

Emissions Calculation: A comprehensive GHG emissions inventory is required, covering at least 95% of scope 1 and 2 emissions and a significant portion of scope 3 emissions (exclusions in the GHG inventory and target boundary combined must not exceed 10% of total scope 3 emissions).

Target Boundaries: Near-term targets must cover a minimum of 95% of scope 1 and 2 emissions and, if applicable, 67% of scope 3 emissions. For long-term targets, the coverage increases to 90% for scope 3 emissions, ensuring a broad and impactful target scope.

Target Setting Methods: The Standard outlines various methods for setting targets, ensuring they align with the ambition levels dictated by climate science.

Corporate Net Zero Standard Criteria and Recommendations

This section lists the essential criteria for SBTi validation and additional recommendations, focusing on:

Ambition: Targets must align with the 1.5°C warming limit, reflecting the highest level of ambition in emissions reductions.

Timeframe: Near-term targets should be set within 5-10 years, whereas long-term targets must aim for net zero by 2050 at the latest, ensuring timely and meaningful action.



Reporting: Regular and transparent reporting of emissions and progress towards targets is required, fostering accountability and stakeholder trust.

Sector-Specific Requirements

This section highlights the importance of tailoring net zero strategies to address the specific challenges and leverage the unique opportunities within different sectors. Key requirements include:

Customised Targets: Companies within certain high-impact sectors, such as energy, manufacturing, and transportation, are encouraged to develop targets that reflect the specific pathways and mitigation strategies viable for their industry.

Innovative Solutions: The section underscores the need for sector-specific innovations that can drive significant emissions reductions and contribute to the global transition to a net zero economy.

Collaboration and Alignment: It highlights the importance of intra-sector collaboration to overcome common challenges and achieve collective progress towards net zero goals.

Annex D: Reporting Requirements

Annex D underscores the role of effective reporting in maintaining accountability, building stakeholder trust, and demonstrating a company's commitment to achieving its science-based climate goals:

Regular Disclosure: Companies are required to report their GHG emissions and progress towards their science-based targets on an annual basis.

Comprehensive Reporting: The guidance specifies that reports should cover all relevant emissions across scopes 1, 2, and 3, ensuring a full account of a company's GHG impact.

Adherence to Principles: Reporting should follow key principles such as transparency, consistency, accuracy, and completeness to ensure the reliability and credibility of the information disclosed.

Annex E: Guidance for Companies in Land-Intensive Sectors

This section focuses on sectors where land use significantly influences GHG emissions, such as agriculture and forestry. The key requirements include:

Inclusion of Land-Use Emissions: Companies in land-intensive sectors are required to account for and report emissions from land use, land-use change, and forestry (LULUCF) within their GHG inventories.

Sector-Specific Targets: The annex emphasises the need for these companies to set specific science-based targets that address the unique challenges and opportunities associated with land-use emissions.

Best Practices for Measurement and Management: It offers guidance on best practice for measuring, managing, and reducing GHG emissions related to land use, ensuring that companies adopt comprehensive and effective strategies.