SBTi launched world-first net-zero corporate standard
Submitted by hazal.bastimur on November 12, 2021
Recent years have seen an influx of net-zero commitments from companies, with 80% of global GDP covered by commitments to reach net-zero by 2050. However, the quality and ambition of such commitments have been inconsistent, leading to criticism and scepticism around the credibility of corporate net-zero targets.
SBTi’s science-based Net-Zero Standard launched to provide a credible and independent assessment of corporate net-zero target setting and enable companies to align their near- and long-term climate action with limiting global warming to 1.5°C.
Seven companies, including AstraZeneca, CVS Health and Ørsted, are the first worldwide to have science-based net-zero targets verified by the SBTi.
SBTi’s Standard clarifies that rapid action to halve emissions before 2030 and long-term deep emissions cuts of 90-95% before 2050 are crucial for net-zero targets to align with science.
To achieve net-zero with the SBTi, emissions that are not possible to cut - the final 5-10% - have to be neutralized through carbon removals.
Companies should invest in climate mitigation beyond their value chains on the road to net-zero, but this must be in addition to, not instead of, deep emission cuts in line with science.
Sabanci University Corporate Governance Forum is the partner of CDP in Turkey since 2010. CDP works to transform the way the world does business to prevent dangerous climate change and protect natural resources. CDP holds the largest collection of globally self-reported corporate climate change, water and forest-risk data. CDP uses the power of measurement and information disclosure to improve the management of environmental risk.