SBTi Validates Net-Zero Targets for 500 Companies Globally

The Science Based Targets initiative has validated science-based net-zero targets for more than 500 companies, two years after launching its Corporate Net-Zero Standard in October 2021. As of November 2023, over 2,000 additional organisations have publicly committed to setting net-zero targets within the following 24 months.

The 500 validated net-zero companies span multiple continents and high-emitting sectors, including multinationals such as Iberdrola, Colgate, AstraZeneca, TDC Net and Moody's. Europe has the highest concentration of companies with validated net-zero targets under the Corporate Net-Zero Standard, with more than 355 companies having validated targets and over 1,200 holding commitments. North America follows with 80 validated targets and 323 commitments, while Asia has 55 validated companies and 494 commitments. Coverage in Latin America, Oceania, Africa and the Middle East and North Africa remains comparatively limited.

The SBTi milestone arrives against a backdrop of rapid growth in net-zero pledges globally: 92% of global GDP is now covered by some form of net-zero target, and the number of net-zero targets has risen more than 40% since June 2022. However, the Net Zero Tracker has flagged concerns about the credibility and integrity of many such commitments, emphasising the importance of science-based frameworks. The SBTi's Corporate Net-Zero Standard is recognised as one of the most rigorous science-based net-zero frameworks, requiring companies to align near- and long-term climate ambitions with a 1.5°C pathway.

The SBTi is developing a net-zero standard specifically for financial institutions, given that more than 120 FIs are committed to setting such targets but currently lack a science-based framework to do so. A public consultation was held in Q3 2023, with further developments planned for 2024. To scale up validation services and address growing demand, the SBTi reports it has halved waiting times for target validation since the Corporate Net-Zero Standard's launch. Additional resources in development include Supply Chain Guidance, Beyond Value Chain Mitigation Guidance and expanded scope 3 target-setting guidance.

Key figure — 2,000+ organisations committed to setting net-zero targets within 24 months