SBTi CEO Reaffirms Standard Governance After Scope 3 Media Controversy

The Science Based Targets initiative CEO issued a public statement in April 2024 reaffirming that the organisation's standards had not changed and that any revision to how environmental attribute certificates are treated in scope 3 target setting would follow the formal Standard Operating Procedure. The statement followed media coverage raising concerns about potential changes to the treatment of carbon credits in the Corporate Net-Zero Standard.

The CEO confirmed that the SBTi's exploration of environmental attribute certificates, including carbon credits, as part of the ongoing Corporate Net-Zero Standard revision is proceeding through the approved governance process, which requires research and drafting by the technical team, public consultation, review and approval by the independent Technical Council and formal consideration by the Board. A first draft paper on the topic was committed for publication in July 2024. The CEO stated that the mitigation hierarchy continues to apply and that companies cannot substitute purchasing certificates for direct action.

The statement acknowledged that scope 3 emissions, which cover the full value chain, remain the most complex and contested element of the net-zero target-setting framework. Not all scope 3 emissions are equivalent in terms of materiality, corporate control or position in the upstream or downstream chain. Two and a half years after the Corporate Net-Zero Standard was first released, the SBTi described the revision as an opportunity to address these nuances and strengthen the standard's capacity to deliver measurable impact, particularly in high-emitting sectors.

The CEO also noted that the SBTi is preparing an application for membership of ISEAL, the international sustainability standards assurance organisation, as part of its transition from an initiative to a formal voluntary standard-setter. This preparation includes finalising internal policies on claims making, complaints and appeals mechanisms, and quality and data management systems. The CEO expressed confidence in the organisation's governance structure and called on stakeholders across business, academia, civil society and government to engage constructively through the formal consultation process rather than through public controversy.

Key figure — First draft paper on EAC use in Corporate Net-Zero Standard committed for July 2024