The Science Based Targets initiative (SBTi) is updating its Corporate Net-Zero Standard, sparking debate over how best to align business action with climate science. Proposals to require carbon removals from 2030 mark a step forward, but questions remain about whether cumulative rather than annual targets deliver real capacity growth. Shifting electricity goals from “renewable” to “zero carbon” broadens options but raises concerns over scope, lifecycle emissions and the exclusion of bioenergy.
For many years now, the SBTi has led the way in setting the standard for corporate climate commitments. At the heart of SBTi is a simple ethos: follow the science. This ethos has played a large part in the rapid growth of SBTi. More than 10,000 companies are now committed to the target-setting initiative, and more than 3,000 companies are now committed to setting net-zero targets.
With growth comes challenges. The challenge for SBTi lies in maintaining its commitment to the science while maintaining the commitment of its signatories. To get anywhere close to keeping temperatures to within 1.5°C above pre-industrial levels, the Intergovernmental Panel on Climate Change (IPCC) projects a need for rapid decarbonization alongside immediate scale-up of removals. Meanwhile, decarbonization will only get more expensive for businesses as they progressively move along their marginal abatement cost curves. To top things off, the resolve of businesses will inevitably be tested by the increased politicization of climate change and a rise in anti-climate rhetoric. Adherence to the science can guide efforts to ameliorate these challenges.
