Science-Based Targets and Decarbonization: ESG BROADCAST shares key takeaways on the refined automotive framework.
On February 3, 2026, the Science Based Targets initiative (SBTi) opened its second public consultation for the updated draft of the Automotive Sector Net-Zero Standard. This phase follows an extensive revision process and a pilot testing period conducted in 2025, aimed at refining the framework to be more practical, scientifically rigorous, and interoperable with the broader Corporate Net-Zero Standard (V2). The consultation is scheduled to remain open until March 22, 2026, inviting input from automakers, suppliers, and industry experts.
A primary update in this second draft is the refined focus on Scope 3, Category 11 (“Use of sold products”) emissions. Recognizing that vehicle use accounts for the vast majority of an automaker’s carbon footprint, the standard introduces a more streamlined “well-to-wheel” methodology. To provide businesses with greater flexibility, the new draft offers a dual pathway for target setting: companies can choose to set targets based on absolute emission reductions in Category 11 or utilize a Zero-Emission Vehicle (ZEV) sales-share metric. This optionality is designed to accommodate different regional market realities while maintaining long-term alignment with a 1.5°C trajectory.
The updated framework also introduces a stricter definition of Zero-Emission Vehicles, moving away from broader “low-emission” categorizations to eliminate ambiguity. This shift ensures that corporate climate claims are grounded in technologies that provide meaningful decarbonization. For auto parts manufacturers, the standard emphasizes the reduction of emissions from material sourcing and manufacturing (Scope 1 and 2), while encouraging transparency regarding the percentage of parts sold that support zero-emission platforms.
Once finalized, this new standard will officially supersede the automotive-related sections of the SBTi Land Transport Guidance (2024). It also mandates that Category A companies (large corporations) publish detailed climate transition plans within 12 months of target validation. By aligning sector-specific criteria with the evolving Corporate Net-Zero Standard V2, the SBTi aims to provide a “north star” for the industry, helping firms manage transition risks and secure investor confidence amidst shifting global regulations and consumer demand for electrification.
The strategic significance of this standard lies in its ability to harmonize global accounting for the automotive sector, which is responsible for over 20% of man-made greenhouse gas emissions. By providing a road-tested, science-based benchmark, the SBTi is equipping the industry with the tools necessary to prove their climate impact and navigate the capital-intensive transition to net-zero.
Image Credit: Science Based Target Initiative
