What's Happening?
The Science Based Targets initiative (SBTi) has released a second draft of its revised Corporate Net-Zero Standard for public consultation. This update aims to shift companies from climate commitments to concrete actions without reducing the level of ambition
required. The revised standard provides more specific guidance to help companies turn high-level commitments into measurable progress. It maintains the country categorization from the previous draft and introduces a new clause for Scope 2 targets, ensuring they are not less ambitious than national climate commitments.
Why It's Important?
The revised Corporate Net-Zero Standard by SBTi is significant as it provides a framework for companies to align their operations with global climate goals. By focusing on practical implementation, the standard helps businesses transition from pledges to actionable steps, potentially accelerating global decarbonization efforts. This initiative is crucial for industries aiming to meet climate objectives and could influence corporate strategies, investment decisions, and policy-making. Companies that adopt these standards may gain a competitive edge by demonstrating leadership in sustainability.
What's Next?
The consultation period runs from November 6 to December 8, with pilot testing underway to assess the usability of the revised framework. The SBTi plans to update stakeholders in the first quarter of 2026 and publish the final version in the second quarter. Companies currently undergoing validation are advised to continue with version 1, with transitional arrangements being prepared for the shift to the revised standard.
