SBTi企业网络零标准版本1.1

SBTiCORPORATENET-ZEROSTANDARD

Version1.1April2023

1

Version1.1

April2023

SBTiCorporateNet-ZeroStandard

DOCUMENTHISTORY

Version

Releasedate

Effectivedates

Updatesonearlierversion

1.0SBTiCorporateNet-ZeroStandard

28October2021

28October

2021to10April2023

1.1SBTiCorporateNet-ZeroStandard

11April2023

From11April2023

•Editstoimprove

document’sreadability.

•Minorupdatestoprovidefurtherclarificationand

contexttoexisting

criteria,

recommendationsanduseofterminology.

•Clarificationson

exclusions,significancethresholdsand

emissionscoverageforscope1,2and3targets(criteria5and6).

•Clarificationthatthe

targetyearcriterionis

onlyrelevantforabsoluteandintensity-based

emissionreductionnear-termtargets(criterion

17).

•Revisionofallowable

yearsforassessing

progresstodate:for

submissionsin2023,a

recentyearinventory

mustbeprovidedthatisnoearlierthan2021i.e.allowablemostrecent

yearsare2021and2022(criterion18).

•Clarificationthatthe

neutralizationof

unabatedemissions

appliestoboththe

emissionsreduction

targetsboundaryandtoanyunabatedemissionsthathavebeenexcluded.fromtheGHGinventory(criterion28).

•Furtherguidancefor

mandatorytarget

recalculations(criterion32).

Version1.1|April2023

2

SBTiCorporateNet-ZeroStandard

•Revisionofprevious

recommendationto

criterionfortriggered

recalculations(criterion33).

•Alignmentofcriteria36

and37totherevised

versionof

SBTi’spolicy

onfossilfuelcompanies.

•Inclusionofmostupto

dateinformationon

sectordevelopmentsandsector-specificcriteria.

•UpdateonTable2“A

summaryofhowthe

cross-sectorpathway

andsector-specific

pathwayscanbe

applied”;changesFigure3“SBTiperspectiveon

prioritizationofmitigationactions”inSBTi

CorporateNet-ZeroStandard.

•Additionofatablewith

recommendedtarget

languagetemplatesandexamples(Table7)in

SBTiCorporateNet-ZeroStandard.

Version1.1|April2023

3

SBTiCorporateNet-ZeroStandard

TABLEOFCONTENTS

TABLEOFCONTENTS 4

ACRONYMS 7

GLOSSARY 9

1.BACKGROUNDTOTHECORPORATENET-ZEROSTANDARD 14

1.1TheScienceBasedTargetsinitiative 14

1.2PurposeoftheNet-ZeroStandard 15

1.3WhoshouldusetheNet-ZeroStandard? 15

1.4TheNet-ZeroStandardDevelopmentprocess 15

1.5HowtheStandardrelatestootherkeySBTidocuments 16

2.THENET-ZEROSTANDARDFRAMEWORK 18

2.1Near-termscience-basedtargets 19

2.2Long-termscience-basedtargets 20

2.3Neutralization 20

2.4Beyondvaluechainmitigation 20

2.4.1Furtherworkonbeyondvaluechainmitigation 20

3.MITIGATIONPATHWAYSINTHENET-ZEROSTANDARD 22

3.1Thesciencebehindscience-basednet-zerotargets 22

3.2Howmitigationpathwaysareusedtoinformscience-basedtargets 23

3.3Overviewofpathwaysandwhichcompaniesshouldusethem 24

4.SETTINGNEAR-TERMANDLONG-TERMSCIENCE-BASEDTARGETS 30

4.1Selectabaseyear 30

4.2Calculateyourcompany’semissions 30

4.2.1DevelopafullGHGemissionsinventory 30

4.2.2CalculateemissionsreportedseparatelyfromtheGHGinventory 32

4.3Settargetboundaries 33

4.3.1Near-termscience-basedtargetboundary(scopes1,2,and3) 33

4.3.2Long-termscience-basedtargetboundary(scopes1,2,and3) 33

4.3.3Additionalrequirementsforscience-basedtargetcoverage 34

4.3.4MeetingSBTiboundarycriteriawithseveraltargets 36

4.4Chooseatargetyear 36

4.5Calculatingscience-basedtargets 36

4.5.1Eligiblemethodsforallscopes(bothnear-termandlong-termscience-basedtargets) 37

4.5.2Eligiblemethodsforscope2(bothnear-termandlong-termtargets) 37

Version1.1|April2023

4

SBTiCorporateNet-ZeroStandard

4.5.3Eligiblemethodsforscope3(bothnear-termandlong-termtargets) 37

4.5.4Eligiblemethodsfornear-termscope3targetsonly 38

4.6Calculatingnearandlong-termSBTs 40

4.7Targetwording 41

4.7.1Overarchingnet-zerotarget 41

4.7.2Near-termscience-basedtargetwording 41

4.7.3Long-termscience-basedtargetwording 41

5.GUIDANCEFORCOMPANIESINLAND-INTENSIVESECTORS 43

5.1BackgroundonFLAGemissions 43

5.2SBTiFLAGGuidance 43

5.3GreenhouseGasProtocolLandSectorandRemovalsGuidance 44

5.4WhichcompaniesarerequiredtosetFLAGtargets? 44

6.UPDATINGANDCOMMUNICATINGTARGETS 45

6.1Howcancompaniesensurenear-termtargetsalignwiththeNet-ZeroStandard? 45

6.2Howcancompaniesensurelong-termtargetsalignwiththeNet-ZeroStandard? 46

6.3HowtocommunicatewithstakeholderswhentargetsdonotmeettheNet-ZeroStandard

requirements 47

7.THENET-ZEROSTANDARDCRITERIA 48

7.1BackgroundtotheNet-ZeroStandardCriteria 48

7.2Disclaimer 48

7.3Terminology 49

7.2Generalcriteria 49

7.4.1Targetboundary 49

7.4.2Methodvalidity(nearandlong-termtargets) 50

7.4.3Emissionsaccountingrequirements 51

7.5Net-zerotargetformulation 52

7.5.1Net-zerodefinition 52

7.5.2Structure 52

7.5.3Timeframe 52

7.5.4Ambition 53

7.5.5Beyondvaluechainmitigation 55

7.5.6Neutralization 55

7.5.7Targetformulation 55

7.6Reporting,recalculationandtargetvalidity 55

7.6.1Reporting 55

Version1.1|April2023

5

SBTiCorporateNet-ZeroStandard

7.6.2Recalculationandtargetvalidity 56

7.7Sector-specificguidance 56

7.7.1Fossilfuelsales,distribution,andotherbusiness 57

8.SECTORGUIDANCEFORLONG-TERMSCIENCE-BASEDTARGETS 58

9.ACKNOWLEDGEMENTS 62

Version1.1|April2023

6

SBTiCorporateNet-ZeroStandard

ACRONYMS

AFOLU

Agriculture,ForestryandOtherLandUse

BECCS

Bioenergywithcarboncaptureandstorage

BVCM

Beyondvaluechainmitigation

CDR

CarbonDioxideRemoval

COP

ConferenceoftheParties

CO2

Carbondioxide

DAC

DirectAirCapture

EAG

SBTiNet-ZeroExpertAdvisoryGroup

FLAG

Forest,LandandAgriculture

GHG

GreenhouseGas

ICT

InformationandCommunicationsTechnology

IPCC

IntergovernmentalPanelonClimateChange

LUC

Land-usechange

LULUCF

Land-use,Land-usechangeandForestry

NBS

Nature-basedsolutions

NZE

IEA’sNetZeroEmissionsby2050Scenario

REC

Renewableenergycertificate

REDD

ReducingEmissionsfromDeforestationandForestDegradation

REIT

RealEstateInvestmentTrust

SAG

SBTiScientificAdvisoryGroup

SBT

Science-basedtarget

SBTi

ScienceBasedTargetsinitiative

SDA

SectoralDecarbonizationApproach

SME

Smallandmedium-sizedenterprise

SR15

IPCCSpecialReporton1.5˚C

TAG

SBTiTechnicalAdvisoryGroup

TTW

Tank-to-wheel

UNEP

TheUnitedNationsEnvironmentProgram

Version1.1|April2023

7

SBTiCorporateNet-ZeroStandard

UNFCCC

UnitedNationsFrameworkConventiononClimateChange

vPPA

Virtualpowerpurchaseagreement

WRI

WorldResourcesInstitute

WTT

Well-to-tank

WTW

Well-to-wheel

WWF

WorldWideFundforNature

Version1.1|April2023

8

SBTiCorporateNet-ZeroStandard

GLOSSARY

Term

Definition

Furthercomments

Abatement

Measuresthatcompaniestaketoprevent,reduce,oreliminate

sourcesofGHGemissionswithintheirvaluechain.Examples

includereducingenergyuse,switchingtorenewableenergy,andreducingchemicalfertilizeruse.

Alsosee:

•Decarbonization

•Mitigation

Absolutereduction

Methodusedtocalculateabsoluteemissionsreductiontargetsthatrequiresorganizationstoreduceannualemissionsbyanamount

consistentwithunderlyingmitigationpathways.Alsoknownas“absolutecontraction”.

Alsosee:•

•

Sector-specificintensityconvergence

Science-basedtargetmethods

Beyondvaluechainmitigation(BVCM)

Mitigationactionorinvestmentsthatfalloutsideacompany’svaluechain,includingactivitiesthatavoidorreduceGHGemissions,orremoveandstoreGHGsfromtheatmosphere.

ExamplesofBVCMinclude:

•Forestry,e.g.,

Jurisdictional(ReducingEmissionsfrom

DeforestationandForestDegradation)REDD+

•Conservationprojects,e.g.,peatlandor

mangrove

•Energyefficiency,e.g.,cookstoveprojects

•Methanedestruction,

e.g.,landfillgasprojects

•Renewableenergy,e.g.,solar/wind/biogas

•Industrialgases,e.g.,

N2Odestructionatnitricacidfacilities

•Scale-upofCarbon

DioxideRemoval(CDR)technologies,e.g.,DirectAirCapture(DAC)and

Storage.

Bioenergy

Energygeneratedfromthecombustionofbiomass.Incertaincases,bioenergyisconsidered‘carbonneutral’because

combustion-relatedCO2emissionsarebalancedbyCO2sequesteredduringbioenergyfeedstockgrowth.

Biomassemissions

Organicmaterialavailableabovegroundandbelowground,livinganddead,e.g.,trees,crops,grasses,treelitter,rootsetc.

CarbonDioxideRemoval(CDR)

AccordingtotheIntergovernmentalPanelonClimateChange(IPCC),“anthropogenicactivitiesremovingCO2fromthe

atmosphereanddurablystoringitingeological,terrestrial,oroceanreservoirs,orinproducts”.Removalsareeithernature-based,

geologicalorahybrid.

Climatechangemitigation

AccordingtotheIPCC,“ahumaninterventiontoreduceemissionsorenhancethesinksofGHGs.”

Alsosee:

•Mitigationstrategy

Compensation(legacyterminologyusedin

earlierversionsofthe

SBTiNet-ZeroStandard)

Actionscompaniestaketohelpsocietyavoidorreduceemissionsoutsideoftheirvaluechain.

SBTiiseliminatingthetermfromusewithinitsdocumentation.

Alsosee:

•Greenhousegases

•Valuechainemissions

Version1.1|April2023

9

SBTiCorporateNet-ZeroStandard

Corporateclimatetargets

Goalssetbyacorporationtoreduceitsimpactontheclimate.

TargetsmayincludeavarietyofGHGemissionsacrossdifferentcorporateactivities(i.e.,operations,valuechain,orproducts)andmayuseemissionsabatement,compensation,orneutralization.

Alsosee:

•Abatement

•Compensation

•Neutralization

Cross-sectorpathway

One-size-fits-allpathwayforcompaniestocalculatenear-termandlong-termabsolutereductionscience-basedtargets(SBTs),eligibleforallcompaniesexceptthoseinthepower,maritimetransportor(Forest,LandandAgriculture)FLAGsectors.

Alsosee:

•Sector-specificpathways

Decarbonization

TheprocessbywhichCO2emissionsassociatedwithelectricity,industry,andtransportarereducedoreliminated.

Alsosee:

•Abatement

Emissions(orGHG)inventories

AccordingtotheGHGProtocol,a“quantifiedlistofan

organization’sGHGemissionsandsources.”Emissionsinventoriestypicallyincludeemissionsinscopes1,2,and3.

Alsosee:

•Scope1inventory

•Scope2inventory

•Scope3inventory

Forest,landand

agriculture(FLAG)emissions

FLAGdesignatestheSBTiForest,LandandAgricultureproject,

sectors,methodologiesandtargets.ThetermsFLAG-related

emissionsandAgriculture,ForestryandOtherLandUse(AFOLU)emissionsareusedinterchangeablyintheSBTiFLAGGuidance.

Othersimilarrelatedtermsare

AFOLUandLand-use,Land-usechangeandForestry(LULUCF;AFOLUandagricultureGHGs)

Globalemissionsbudget

Acumulativeemissionsthresholdthatmustnotbeexceededtolimitglobaltemperaturerisebyaspecifiedamountandprobability.

EmissionsbudgetscanbedeterminedforCO2onlyorallGHGs.

Alsosee:•

•

GreenhousegasesParisAgreement

Greenhousegases(GHGs)

Gaseswhichabsorbandre-emitinfraredradiation,therebytrappingitinEarth’satmosphere.Includescarbondioxide(CO2),methane

(CH4),nitrousoxide(N2O),hydrofluorocarbons(HFCs),

perfluorocarbons(PFCs),sulfurhexafluoride(SF6),andnitrogentrifluoride(NF3).

GreenhouseGas(GHG)

Goalssetbyanorganizationtoreducedirectorindirectemissions

Alsosee:

emissionreduction

byaspecifiedamount.

•Greenhousegases

targets

•Science-basedtargets

Insetting

UsedtodescribeprojectswhollycontainedwithinaScope3supplychainboundaryofacompany,aprojectpartiallywithintheirScope3supplychainboundary(spanningtheirsupplychainandother

companies’supplychains)andaprojectadjacenttoasupplychainboundary.

Therearemultipledefinitionsfortheterm“insetting”inuseandnostandardizationoftheterm.

IntergovernmentalPanelonClimateChange

(IPCC)

UnitedNationsbodyforassessingthesciencerelatedtoclimatechange.

Alsosee:

●IPCCSpecialReporton1.5°C(SR15)

●ParisAgreement

IPCCSpecialReporton1.5˚C(SR15)

ASpecialReportrequestedbytheUnitedNationsontheimpactsofglobalwarmingof1.5°Cabovepre-industriallevelsandrelated

globalGHGemissionpathways.Issuedinthecontextof

strengtheningtheglobalresponsetothethreatofclimatechange,sustainabledevelopment,andeffortstoeradicatepoverty.The

reportincludesover6,000scientificreferencesandwaspreparedby91authorsfrom40countries.

Alsosee:

•ParisAgreement

Long-termscience-basedtarget

GHGreductiontargetsinlinewithwhatthelatestclimatescience

deemsisnecessarytoreachnet-zeroattheglobalorsectorlevelin1.5°Cpathwaysbefore2050.

Alsosee:

•Near-termscience-basedtarget

Mitigation

AccordingtotheIPCC,“ahumaninterventiontoreduceemissionsorenhancethesinksofGHGs.”

Alsosee:

•Mitigationstrategy

Version1.1|April2023

10

SBTiCorporateNet-ZeroStandard

Mitigationstrategy

AsetofmeasuresplannedbyacompanytomitigateGHG

emissionsthatmayincludeabatement,insetting,compensationandneutralization.

Alsosee:

•Mitigation

•Abatement

•Insetting

•Compensation

•Neutralization

Nature-basedSolutions(NBS)

TheWWFdefinesNBSas“Ecosystemconservation,management

and/orrestorationinterventionsintentionallyplannedtodeliver

measurablepositiveclimateadaptationand/ormitigationbenefitsthathavehumandevelopmentandbiodiversityco-benefits

managinganticipatedclimateriskstonaturethatcanunderminetheirlong-termeffectiveness.”

Alsosee:•

•

•••

Beyondvaluechainmitigation

CarbonDioxideRemoval(CDR)

CompensationNeutralizationInsetting

Near-termscience-basedtarget

GHGreductiontargetsinlinewithwhatthelatestclimatesciencedeemsnecessarytolimitwarmingto1.5°Cabovepre-industrial

levelsandareachievedwithina5-10yeartimeframefromthedateofsubmissiontotheSBTi.

Alsosee:

•Long-termscience-basedtarget

Net-zero

Settingcorporatenet-zerotargetsalignedwithmeetingsocietal

climategoalsmeans:(a)reducingscope1,2and3emissionsto

zerooraresiduallevelconsistentwithreachingnet-zeroemissionsattheglobalorsectorlevelineligible1.5°Cscenariosorsector

pathwaysand(b)neutralizinganyresidualemissionsatthenet-

zerotargetdate–andanyGHGemissionsreleasedintotheatmospherethereafter.

Alsosee:

•Near-termscience-basedtarget

•Long-termscience-basedtarget

•Residualemissions

Neutralization

Measuresthatcompaniestaketoremovecarbonfromthe

atmosphereandpermanentlystoreittocounterbalancetheimpactofemissionsthatremainunabated.

Alsosee:•

••

Nature-basedSolutionsCarboncredits

CarbonDioxideRemoval(CDR)

Physicalemissionsintensity

Ametricdescribingtheemissionsperphysicalunitofanactivity

(e.g.,cementproduction).Thesector-specificintensityconvergencemethodisbasedontheprinciplethatallcompaniesinasectorwillconvergetothesamephysicalemissionsintensityinafutureyear

ofmitigationpathways.

Alsosee:

•Decarbonization

•ParisAgreement

Removals

Measuresthatcompaniestaketoremovecarbonfromthe

atmosphereandpermanentlystoreitwithinorbeyondthevaluechain.

Examplesinclude,butarenotlimitedto:

•DACandstorage

•Bioenergywithcarboncaptureandstorage(BECCS)

•Improvedsoilmanagement

•Improvedforestmanagement

•Landrestoration,e.g.,ofpeatland,terrestrialforestsormangroves

Withinthevaluechain,companiesintheFLAGsectorsare

expectedtodeliverbiogeniccarbonremovalsaswellasabatementaspartoftheirscience-basedtargets.

Alsosee:•

•

CarbonDioxideRemoval(CDR)

Neutralization

Residualemissions

Emissionssourcesthatremainunabatedinaspecificyearofamitigationscenario.Long-termSBTsdefinethecompany’s

maximumlevelofresidualemissionsinlinewithglobalorsectornet-zeroin1.5°C-alignedmitigationpathwayswithloworno

overshoot.

Alsosee:

•ParisAgreement

Version1.1|April2023

11

SBTiCorporateNet-ZeroStandard

SBTiNet-ZeroExpertAdvisoryGroup(EAG)

AdvisorybodytotheSBTiconsistingofrepresentativesfromcivilsocietyorganizations,corporateclimateactioninitiatives,researchagencies,andotherstakeholderscontributingspecificallytothe

developmentoftheNet-ZeroStandard.

SBTiScientificAdvisoryGroup(SAG)

AdvisorybodytotheSBTiconsistingofrecognizedexpertsin

climatechangemitigation,integratedassessmentmodelling,energysystemandland-usedynamics,andothertopicscontributingto

developingtheSBTi’sscientificfoundations.

SBTiTechnicalAdvisoryGroup(TAG)

AdvisorybodytotheSBTiconsistingofpractitionersandexpertsintopicssuchascorporatesustainability,greenhousegasaccounting,andtarget-setting,providingfeedbackonSBTimethods,criteria

changes,andguidance.

Science-basedtargets(SBTs)

TargetsthatareinlinewithwhatthelatestclimatesciencesaysisnecessarytomeetthegoalsoftheParisAgreement–topursue

effortstolimitwarmingto1.5°C.

Alsosee:

•Near-termscience-basedtargets

•ParisAgreement

•Pre-industriallevels

Science-basedtargetmethods

Methodsusedtocalculatescience-basedtargetsfromamitigationpathway,companyinputvariables,andanallocationformula.

Alsosee:

•Absolutereduction

•Sector-specificintensityconvergence

Sector-specificintensityconvergence

Methodusedtocalculateemissionsintensitytargetsbasedontheprincipleofconvergingtoasector-widephysicalemissionsintensityinafutureyearofamitigationpathway.

Alsosee:

•Absolutereduction

•Science-basedtargetmethods

Sector-specificpathways

Absoluteemissionsoremissionsintensitypathwaysforaspecificsectorthatmaybeusedforcalculatingnear-termandlong-termintensitytargets–aswellaslong-termabsolutetargets,inmostcases.

Alsosee:

•Cross-sectorpathway

Scope1emissions

DefinedbytheGHGProtocolaccountingstandardas:“Areportingorganization’sdirectGHGemissions.”

Alsosee:

•Greenhousegases

Scope2emissions

DefinedbytheGHGProtocolaccountingstandardas:“Areportingorganization’s(indirect)emissionsassociatedwiththegenerationof

electricity,heating/cooling,orsteampurchasedforownconsumption.”

Alsosee:

•Greenhousegases

Scope3emissions

DefinedbytheGHGProtocolaccountingstandardas:“Areportingorganization’sindirectemissionsotherthanthosecoveredinscope2.”

Alsosee:

•Greenhousegases

Version1.1|April2023

12

SBTiCorporateNet-ZeroStandard

TheParisAgreement

StatedbytheUnitedNationsFrameworkConventiononClimateChange(UNFCCC),theParisagreementisa“legallybindinginternationaltreatyonclimatechange.Itwasadoptedby196PartiesattheConferenceoftheParties(COP)21inParis,on12December2015andenteredintoforceon4November2016.Itsgoalistolimitglobalwarmingtowell-below2,preferablyto1.5degreesCelsius,comparedtopre-industriallevels.”

UnitedNationsClimateChangeConference(2021:COP26)

TheannualCOPbringstogetherthe197countriesthathaveratifiedtheUNFCCC.Asthetwenty-sixthsuchgathering,itisknownasCOP26andtookplaceinGlasgowinNovember2021.

TheUnitedNationsEnvironmentProgram(UNEP)statesthat:“UndertheConvention,nationshavereachedtwokeyagreementsonreducinggreenhousegasemissions:theKyotoProtocoladoptedin1997,andtheParisAgreementadoptedin2015.TheParisaccordisbuiltaroundso-called“nationallydeterminedcontributions”asameansofachievingthegoaloflimitingtheglobaltemperatureincrease,andtostepupthosecontributionsovertime”.”

Alsosee:

•ParisAgreement

Valuechainemissions

Acompany’sscope1,2,and3emissionsasdefinedbytheGHGProtocolCorporateAccountingandReportingStandard.

Alsosee:

•Scope1inventory

•Scope2inventory

•Scope3inventory

Well-to-wheel(WTW)

Tank-to-wheel(TTW)emissionscoveralltheenergyusedoncetransformed.Thisisemissionsoccurringduringthecombustionofthefuels.

Well-to-tank(WTT)emissionsarebasedonattributionallife-cycleassessmentstudiesoffossil-derivedfuels(e.g.,gasoline,diesel,compressedandliquefiednaturalgas),biofuelsandelectricity(basedontimeandscenario-specificestimatedaveragegridcarbonintensity).

Together,TTWandWTTmakeupWTWGHGemissions.Thisdoesnotincludeemissionsfromvehicleorbatterymanufacturing,orthoseoffsetbymaterialrecycling,amongothers.

Version1.1|April2023

13

SBTiCorporateNet-ZeroStandard

1.BACKGROUNDTOTHECORPORATENET-ZEROSTANDARD

TheIntergovernmentalPanelonClimateChange(IPCC)’sSpecialReportonGlobalWarmingof1.5°C(SR15,2018),waswidelyacceptedasawarningthatwemustlimitglobaltemperatureriseto1.5°Cabovepre-industriallevelsandreachnet-zeroCO2emissionsby2050forthebestchanceofavoidingcatastrophicclimatebreakdown.Morerecently,theIPCC’sSixthAssessmentReport(2021)hasconfirmedthatclimatechangeisalreadyaffectingeveryregiononEarth,itsimpactsincreasinglyvisibleintheformofextremeweather,worseneddroughtsandheightenedriskofforestfires.

Againstthisbackdrop,companiesareincreasinglyadoptingnet-zerotargets.Thenumberofbusinessescommittingtoreachnet-zeroemissionshasgrownrapidly,butnotallnet-zerotargetsareequal.Withoutadheringtoacommondefinition,net-zerotargetscanbeinconsistent,andtheircollectiveimpactisstronglylimited.

Whilethegrowinginterestinnet-zerotargetsrepresentsanunparalleledopportunitytodrivecorporateclimateaction,ithasalsocreatedapressingneedforacommonunderstandingof‘net-zero’inacorporatecontext.Businessleadersneedarobust,science-basedframeworkforsettingnet-zerotargets.Otherwise,theyriskcontinuingtoinvestinbusinessmodelsthatareinconsistentwiththegoalsoftheParisAgreement.

Throughatransparentmulti-stakeholderprocess,theScienceBasedTargetsinitiative(SBTi)hasdevelopedthefirstglobalscience-basedstandardforcompaniestosetnet-zerotargets.TheNet-ZeroStandardgivesbusinessleadersconfidencethattheirtargetsarealignedwithwhatisneededforahabitableplanet,anditprovidesclarityonbusinessclimateactiontoawiderangeofstakeholders.

1.1TheScienceBasedTargetsinitiative

TheSBTiisaglobalbodyenablingbusinessesandfinancialinstitutionstosetambitiousemissionsreductionstargetsinlinewithclimatescience.Itisfocusedonacceleratingcompaniesacrosstheworldtohalveemissionsbefore2030andachievenet-zeroemissionsbefore2050.

Theinitiativeisacollaborationbetweenfouroftheworld’smostrespectedenvironmentalorganizations:CDP,theUnitedNationsGlobalCompact,WorldResourcesInstitute(WRI)andtheWorldWideFundforNature(WWF),andisoneoftheWeMeanBusinesscoalitioncommitments.

TheSBTidefinesandpromotesbestpracticeinscience-basedtargetsetting,offersresourcesandguidancetoreducebarrierstoadoption,andindependentlyassessesandapprovescompanies’targets.

Version1.1|April2023

14

SBTiCorporateNet-ZeroStandard

1.2PurposeoftheNet-ZeroStandard

TheSBTi’sCorporateNet-ZeroStandard(alsoreferredtoasthe‘Net-ZeroStandard’)containsguidance,criteria,andrecommendationstosupportcorporatesinsettingnet-zerotargetstobevalidatedbytheSBTi.Themainobjectiveofthisstandardistoprovideastandardizedandrobustapproachforcorporatestosetnet-zerotargetsalignedwithclimatescience.

ItisimportanttonotethatwhiletheSBTidoesprovidesomesupplementaryguidanceongreenhousegas(GHG)accounting,companiesshouldrefertothesuiteofcorporate

GreenhouseGasProtocol

standards

onthistopic.

1.3WhoshouldusetheNet-ZeroStandard?

Theintendedaudienceforthisdocumentiscorporateswithmorethan500employeesthatwishtocommittosettingandsubmittingscience-basednet-zerotargetsthroughtheSBTi.

Althoughnotdirectlyintendedforsmallandmedium-sizedenterprises(SMEs),theseorganizationsshouldusethisdocumenttounderstandthekeyelementsofascience-basednet-zerotargetandtheSBTi’srecommendedtarget-settingprocess.TheSBTioffersasimplifiedrouteforSMEstosetnet-zerotargets,meaningthatsomeofthedetailcontainedwithinthisdocumentwillnotbeapplicable.SMEsshouldrefertothe

SMEFAQ

formoreinformation.

Thisdocumentdoesnotcovernet-zerotargetsforfinancialinstitutions.TheSBTiisdevelopingaseparate

Net-ZeroStandardforFinancialInstitutions.

1.4TheNet-ZeroStandardDevelopmentprocess

TheSBTiinitiatedascopingphaseofworkin2019todevelopaframeworkenablingcompaniestosetrobustandcrediblenet-zerotargetsinlinewitha1.5°Cfuture.ThestandarddevelopmentprocessformallybeganaftertheSBTi’spublicationof

Foundationsfornet-zerotargetsettinginthecorporate

sector

inSeptember2020.Afterpublication,theSBTiconvenedadedicated

Net-ZeroExpertAdvisory

Group

(EAG),whichwastobethemainconsensusbuildingbodyfortheproject.

TheSBTithendevelopeddetailedcriteriaandguidanceinregularconsultationwiththeEAG,aswellastheSBTi’sScientificandTechnicalAdvisoryGroups.TheSBTirequestedfeedbackfromstakeholderstoimprovethestandardthroughtwopublicconsultationsandacompanyroadtest.Thestandardwaslaunchedon28October2021.

Version1.1|April2023

15

SBTiCorporateNet-ZeroStandard