Furthermore, company targets must focus on emissions reductions within its own value chain. External CO2 certificatesand avoided emissions are not counted towards the science-based targets. They represent a voluntary option and an additional commitment to paying a financial contribution towards emissions reductions beyond the SBT.
Take a look at the SBTi criteria for more detailed information.
The SBTi also developed a Net-Zero Standard for companies. This provides a clear and science-based definition of net zero and is the world’s first framework in the private sector for setting long-term, ambitious and science-based net zero targets.
Key requirements of the Net-Zero Standard
- Aim for rapid and significant emissions reductions
To effectively limit global warming to 1.5°C, rapid and far reaching action must be taken to reduce emissions in the value chain. Therefore, the Net-Zero Standard covers the entire value chain of a company across scope 1, scope 2 and scope 3 emissions. The inclusion of indirect emissions (scopes 2 and 3) requires most companies to achieve significant decarbonisation of at least 90 per cent to reach the Net-Zero Standard.
- Short- and long-term climate targets are needed
Companies that wish to align their climate targets with the Net-Zero Standard need to set both short- and long-term, science-based targets. So short-term targets that reduce emissions as quickly and effectively as possible are required in order to halve corporate emissions by 2030 at best. There is also a need for long-term targets that facilitate net zero by 2050, whereby investments in climate protection projects with sink benefits (removals) are used for all residual emissions that cannot be avoided.
- No net-zero aspirations until long-term targets are achieved
Most companies must reduce their emissions by at least 90 per cent by 2050. Even if a company sets long-term and ambitious reduction targets and makes efforts to meet them, it is not considered a net-zero company until these targets are met.
- Act beyond the value chain
The Net-Zero Standard recommends that companies also make investments outside the value chain to mitigate climate change, for example in climate protection projects. However, these investments should not be seen as a substitute for significant emissions reductions within the company. Rather, they should serve to complement the established and ambitious climate targets, underscoring the company's commitment to net zero by 2050.