The Science Based Targets initiative (SBTi) is publishing four technical outputs as an early step in the process for the revision of the SBTi Corporate Net-Zero Standard and will decide next year on whether carbon offsetting can be increased.

As a leading voluntary standard-setter, the SBTi is responding to the experiences of businesses that have had their targets validated by the SBTi to explore options to develop a more effective approach to addressing scope 3 (indirect) emissions and enhance the impact of its Corporate Net-Zero Standard. Scope 3 emissions make up 75 per cent of the average company’s footprint.

Some businesses have had trouble in plotting a pathway to the SBTi 90 per cent reduction in absolute emissions, for example Air New Zealand, and the greater use of offsetting could provide an answer. However, mitigation is not as good as reduction for some, whilst for others it is a necessary evil to reach targets, especially in developing areas.

Following the announcement, a draft Corporate Net-Zero Standard will be released for public consultation towards the end of Q4 2024, and the SBTi welcomes and encourages contributions from civil society, business and government. The SBTi will publish a summary of feedback received, respecting data privacy and data protection regulations, that will be considered by the SBTi to inform the development of the standard.

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