SBTi rule update: towards a simplified requirement
- asacleux
- 1 day ago
- 1 min read
25% of global revenue : that's what the 11,000 organizations committed to the Science Based Targets initiative (SBTi) will represent by 2025. SBTi is the international organization that helps businesses and institutions define greenhouse gas emission reduction targets aligned with climate science.
This figure has more than tripled since 2023, demonstrating an encouraging trend. This should motivate us to make this environmental roadmap as clear as possible for all the remaining economic stakeholders who still need to be convinced.
That is why the head of the SBTi unveiled in early November a project to clarify and strengthen the standards of its “ Corporate Net-Zero Standard ”, with a version 2.0, which is open for consultation for another two weeks.
The proposal includes imposing a continuous validation cycle, strengthening Scope 1, 2, and 3 targets (including 100% low-carbon electricity by 2040), and introducing Ongoing Emissions Responsibility to manage residual emissions. It would also encourage climate finance beyond the value chain, which would be mandatory for all companies from 2028.
In our view, this strengthening of the framework aligns with recent announcements from the EU and at the COP, which consider carbon credits a credible means of achieving climate objectives. However, increased reliance on carbon finance requires us to regulate its use much more strictly to prevent any speculation on the mechanism.
To achieve this, choices will surely have to be made, such as systematizing the rating of projects, even if it means excluding credits with low integrity from net zero strategies: they can be considered as voluntary contributions, but should not be counted ton for ton.
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