SBTi opens consultation on draft net-zero standard for automotive sector

The Science Based Targets initiative released a draft Automotive Sector Net-Zero Standard requiring carmakers to set vehicle emission-intensity targets and increase low-emission-vehicle sales. As Indian automakers expand electrification, the standard signals tightening science-aligned target expectations across operations, supply chains, and vehicles.

The Science Based Targets initiative (SBTi) released its draft Automotive Sector Net-Zero Standard, outlining sector-specific criteria across operations, supply chains, and vehicles. It forms part of SBTi's sectoral approach to high-emitting industries such as cement, aviation, and agriculture and aligns with the forthcoming Corporate Net-Zero Standard Version 2. Automakers would be required to set targets based on the aggregated GHG emission intensity of vehicles, incorporating fuel use and end-of-life processing, and to increase the share of low-emission vehicle (LEV) sales. The SBTi estimates the automotive sector accounts for more than 20% of global man-made greenhouse gas emissions.

The draft affects automakers and auto parts manufacturers across the value chain. For parts suppliers, new criteria focus on emissions from material sourcing and manufacturing and disclosure of the proportion of parts sold for LEVs. The sector faces growing risks from climate-related supply-chain shocks and rising investor expectations. The standard requires companies to aggregate Scope 1-3 emissions and align with Corporate Net-Zero V2, with electrification positioned as an opportunity for industry innovation, resilience, and efficiency while maintaining competitiveness in a rapidly transforming market.

Indian automakers and parts manufacturers should review the draft and participate in the open public consultation, which seeks input on Scope 1-3 emissions aggregation, alignment with Corporate Net-Zero V2, low-emission-vehicle target criteria, and supplier disclosures. The consultation is available online for feedback on the full draft standard. Companies should assess readiness to set vehicle emission-intensity targets, increase LEV sales, and disclose LEV-related parts proportions. Monitor how stakeholder feedback shapes the final standard and prepare supply-chain emissions data for aggregated reporting.

Key figure — Sector emissions share: more than 20% of global man-made greenhouse gas emissions