The SBTi Insider: February 2025

Corporate Net-Zero Standard revision: New opportunities for stakeholders to input

The SBTi announced this week that it will be seeking additional stakeholder feedback on the revision of its flagship Corporate Net-Zero Standard.

New Expert Working Groups and a second public consultation will give businesses and other stakeholders significant opportunities to input into the revision of the Corporate Net-Zero Standard. The aim is to create a revised Standard that is effective and actionable without compromising on ambition.

We will release a first draft of the Standard for consultation no earlier than March 2025. To ensure businesses and other stakeholders have extensive opportunity to input into the revision, the Expert Working Groups will focus on five key themes that are critical to businesses setting effective, practical and ambitious targets:

• Scope 2: Addressing emissions from purchased or acquired electricity to ensure effective decarbonization.
• Scope 3: Target-setting approaches, strategies and interventions for addressing scope 3 emissions.
• Removals: Neutralization and Carbon Dioxide Removal (CDR), particularly regarding removals targets.
• Ongoing emissions and BVCM: Addressing ongoing emissions in the transition to net-zero through Beyond Value Chain Mitigation (BVCM) activities, including the scale of action and allowable measures.
• Data quality, data assurance and claims: Data quality and assurance and substantiation of claims.

Details of how to apply to these groups, and the requirements of the role, can be found in the associated Terms of Reference. Experts are invited to apply by completing this form no later than 11:59 PM PT on Friday February 28, 2025.

In the meantime, companies without near-term or net-zero targets are strongly encouraged to go ahead and set these. Once V2 of the Standard is finalized, the SBTi will ensure there are ways to make commitments under V2 that are consistent with and do not duplicate work for targets set under V1. The current Corporate Net-Zero Standard remains the most credible and robust framework for companies setting science-based net-zero targets.

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Feature Focus

The Steel Science-Based Target-Setting Guidance is the world’s first framework to help steel companies and users of steel, such as the automotive industry, to set 1.5°C-aligned near- and long-term science-based targets at a corporate level.

While this framework provides clarity and structure, misconceptions about its application can cause uncertainty. To address these and ensure companies can confidently set targets, Diana Farmer , SBTi North America Regional Lead, breaks down three common misconceptions in a concise video series.

WATCH NOW: Misconception #1 - Stricter targets when scrap ratio increases (1:49)

This video addresses the common misconception about the amount of scrap that steel companies use. It is not the case that targets get stricter when a company’s scrap ratio increases during the target time frame.  

WATCH NOW: Misconception #2 -  Targets can be met by using more scrap (0:50)

Diana clarifies the misunderstanding that the two different pathways within the Steel Guidance allow for primary steelmakers to have higher emissions and maintain the status quo.

WATCH NOW: Misconception #3 - CCUS technologies don't count towards science-based targets (1:01)

This video addresses the misconception that Carbon Capture, Utilization, and Storage (CCUS) technologies don’t count toward science-based targets - they do!

Updates and News

New SBTi FLAG Guidance in Brief

Today, the SBTi has published the FLAG Guidance in Brief, a new resource designed to help companies understand and apply the SBTi’s FLAG Target-Setting Guidance. It provides an overview of FLAG target setting, including the differences between FLAG and non-FLAG (energy/industry) targets, which companies are required to set FLAG targets, and how to effectively use the guidance. As the third-highest emitting sector, with the potential to contribute 37% of the emissions reductions needed by 2030, FLAG must be part of the global decarbonization effort.

Read the new FLAG Guidance in Brief here.

What’s changing on the SBTi Target Dashboard?

On March 11, 2025, the SBTi will roll out improvements to the Target Dashboard to enhance data clarity and usability. Taylor Frerichs , SBTi Services Senior Data Governance Manager, explains what’s changing and the action regular users may need to take to prepare.

Read more about the improvements here.

Noteworthy News

SBTi seeks experts for working groups in Net Zero Standard revision

edie | February 10

“The Science Based Targets Initiative (SBTi) is launching five new expert working groups to inform the development of the second version of its Net Zero Standard for corporates, covering issues including Scope 3 emissions accounting and carbon removals.”

How will the SBTi’s Updated Target Dashboard Change?

Sustainability Magazine | January 31

“The SBTi is updating its Target Dashboard to enhance clarity, usability and performance and improve how it tracks and displays data”

SBTi Passes 10,000 Companies Committing to Science-Based Climate Targets

ESG today | January 21

“The Science Based Targets initiative (SBTi), one of the key organizations focused on aligning corporate environmental sustainability action with the global goals of limiting climate change, announced a key milestone, reaching more than 10,000 businesses that have set science-based emissions reduction targets, or made commitments to do so.”

Join the SBTi

As the SBTi grows, we are looking for qualified and passionate applicants to join our team.

Target Validation

• Validation Customer Support, Regional Manager | East Coast of the USA, Mexico, Brazil, UK, Spain, Netherlands, Singapore or Japan

Operations

• Data Pipeline Engineer | Berlin, Germany

Impact

• Head of Global Sector Partnerships | New York, Amsterdam, Berlin, and London

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