SBTi advances Net-Zero corporate standard with focus on Scope 3 emissions

The Science Based Targets initiative (SBTi) has published four technical papers that explore how to better address Scope 3 emissions as an early step in the review of the Corporate Net-Zero Standard. Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organization, but that the organization indirectly affects in its value chain (both its upstream and downstream activities). According to SBTi, Scope 3 emissions accounts for 75% of the average company’s carbon footprint.

The four technical papers include the following:

• Discussion paper setting out the SBTi’s initial thinking on potential changes being explored around scope 3 target setting, including underlying principles and concepts

• Evidence received on the effectiveness of Environmental Attribute Certificates (EAC)

• Synthesis report presenting the evidence submitted on the effectiveness of carbon credits in corporate climate targets

• Findings of the assessment conducted by an independent third party on peer-reviewed academic literature on the effectiveness of carbon credits when used as a substitute for direct abatement.

The draft Net-Zero Corporate Standard will be published for public consultation in Q4 2024.