SBTi delays new corporate net-zero update again

The Science Based Targets initiative is seeking applicants for five expert working groups who will be consulted for extra feedback on the much-anticipated revision of the Corporate Net Zero Standard.

A draft for the Corporate Net Zero Standard 2.0 was due by the end of 2024, according to the timeline published in May. 

As of this writing, the draft is still not publicly available, but the nonprofit on Feb. 10 opened an application process for working groups who will be asked to critique the document. 

The main aim of the new consultations is to release “a revised standard that is effective and actionable, without compromising on ambition,” SBTi said in its blog about new feedback process.

“Reaching net-zero is never going to be straightforward, but the guidance to get businesses there should be,” said SBTi Chief Impact Officer Tracy Wyman. “The additional consultations announced today will support the development of a revised Corporate Net-Zero Standard that works for businesses and accelerates climate action.” 

Two-phase process

Each group will include up to 20 diverse, multi-regional stakeholders including scientists, academia, NGOs and corporations. SBTi may hand-select members if there’s an expertise gap. The participants will be consulted about potential revisions including:

• Segmentation and categorization requirements based on a company’s size and geography
• A new validation process that will affect how companies should communicate progress for interim targets and set new goals for continuous improvement
• Guidance on setting Scope 3 commitments
• Acceptable processes for counterbalancing residual emissions
• Procedures for corporations to report “credibly” on progress, including interoperability with key disclosure frameworks  

The deadline to apply for the working groups is 11:59 p.m. Pacific time Feb. 28. SBTi also plans to solicit public comments via an online survey process. “The first consultation will begin no earlier than March 2025 — all stakeholders are invited to participate,” the organization said in a blog about the process.

The consultation process for feedback on the revision will last a minimum of 60 days.

Under the microscope

The eagerly awaited Corporate Net Zero Standard revision has been the subject of scrutiny and controversy since April, after SBTi suggested companies might be able to use “environmental attribute certificates” such as carbon credits to mitigate some Scope 3 emissions. The backlash was swift, with some staff threatening to resign over what they described as a breach of SBTi’s governance procedures. 

In July, the organization’s CEO Luiz Amaral resigned after just two years on the job. His replacement, U.K. economist David Kennedy, formerly an EY partner, is expected to start in the second quarter of 2025.  

The turmoil surrounding SBTi has prompted some companies to question the future of the standard, and potential replacements are emerging, such as an ISO Net Zero Standard that could be released by the end of 2025. Given the International Organization for Standardization’s status as the global authority for organizational management, manufacturing and technology standards, interest in that work is intense.

SBTi’s governance requires it to review standards every two to five years. Some companies with commitments validated under the current net-zero standard are approaching the end of their first interim target cycle during 2025. 

The organization’s chief source of funding is the IKEA Foundation, through an $18 million grant that’s active through 2026. SBTi’s $18 million grant from the Bezos Earth Fund ended in December.

As of Feb. 7, the SBTi target dashboard lists 1,654 companies as “committed” to the net-zero standard; 1,563 more corporations have already set their net-zero goals. More than 200 companies including Amazon, Microsoft, Procter & Gamble, Unilever and Walmart had their net-zero commitments removed in March.