Science Based Targets Initiative launches net-zero standard for corporates
AstraZeneca joins the growing number of companies to have emissions targets certified
The Science Based Targets Initiative (SBTi) has launched a corporate standard for assessing and achieving net-zero carbon emissions.
The standard is the first of its kind, according to SBTi, which helps businesses to set emissions targets and provides certification for those that do.
The first seven firms to have their net-zero targets certified as part of the SBTi’s pilot scheme include AstraZeneca, CVS Health, Dentsu International, Holcim, JLL, Ørsted, and Wipro.
More companies have been invited to commit to setting net-zero targets and the SBTi will begin to validate them from January 2022.
“Companies are currently self-defining net-zero targets without a credible and independent assessment of their ambition and integrity,” said Alberto Carrillo Pineda, co-founder and managing director of the SBTi.
“For the first time, the SBTi Net-Zero Standard offers companies robust certification to demonstrate to consumers, investors and regulators that their net-zero targets are reducing emissions at the pace and scale required to keep global warming to 1.5°C. We’re now inviting all companies with net-zero targets and ambitions to show stakeholders that their decarbonization pathway is aligned with science.”
Companies adopting the net-zero Standard will be required to set both near and long term science-based targets across all emission scopes. Near term, targets cover immediate emissions reductions for the next 5-10 years, while long-term targets examine the total level of decarbonization by 2050 or before.
The SBTi highlights that science-based net zero requires companies to achieve deep decarbonization of 90-95% before 2050.
At that point, a company must neutralize any limited residual emissions that are not yet possible to cut.
These residual emissions, the body says, which must be neutralized through carbon removals, cannot exceed 5-10% of a company’s emissions, though this is dependent on sector.
Katarina Ageborg, executive vice president of sustainability at AstraZeneca, said: “We’ve much still to do and as a science-based company it is important to us that these targets, as well as how we achieve them, are verified independently.”
With COP 26 starting next week, this news is perfectly timed for the added pressure that we will see on companies during the event to take account of their environmental impact. Minerva is also in the process of committing to our own Net Zero Journey, see below to help us lead the way to a sustainable future.
Minerva is launching a stakeholder survey for our clients and the wider investment community about their individual climate stewardship preferences. The survey is supported by Minerva’s latest Briefing – Climate Stewardship – which looks at the implications of Paris-aligned sustainable stewardship and the voting choices that investors currently face. Your feedback will help us to ensure that our research and voting guidelines meet client and market needs as we work towards a Net Zero 2030. We look forward to hearing from you.
