The Science-Based Targets initiative (SBTi) has unveiled new proposed guidelines aimed at strengthening corporate strategies for reducing greenhouse gas emissions. These recommendations seek to align rigorous emission reduction requirements with practical pathways for businesses working towards net-zero commitments.
Restricting Carbon Offset Usage
A core component of SBTi’s proposal is the continued limitation on the use of carbon offsets. Companies may only apply offsets to ‘residual’ emissions—those that persist despite the implementation of all feasible reduction measures. This policy reinforces the priority of direct emission reductions across corporate operations and supply chains. However, SBTi encourages organizations to invest in high-quality carbon credits that contribute to global climate initiatives, even if they are not directly linked to their supply chains.
Addressing Scope 3 Emissions with Greater Flexibility
Recognizing the challenges of managing Scope 3 emissions—those arising across a company’s value chain—the revised guidelines introduce more adaptable strategies. Businesses can refine procurement approaches, target the most carbon-intensive activities, and, in the case of smaller enterprises, set voluntary targets. This flexible framework acknowledges the complexities of addressing emissions beyond direct corporate control while promoting effective climate action.
Integrating Carbon Removals into Net-Zero Strategies
Acknowledging the difficulty of eliminating all emissions, SBTi’s proposed standard permits the use of carbon removal credits to address residual emissions. This provision highlights the role of carbon removal technologies and projects in achieving net-zero goals, provided they complement, rather than replace, direct emissions reductions.
Encouraging Broader Climate Contributions
While maintaining a cautious stance on offsets, SBTi advocates for corporate contributions to broader climate initiatives. Investments in high-quality carbon credits supporting projects such as reforestation and renewable energy can drive additional climate finance and accelerate decarbonization efforts. However, these contributions should serve as supplementary actions rather than substitutes for direct emission reduction strategies.