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SBTi Releases Draft Net Zero Standard for Automotive Sector, Opens Consultation

Vedanshi SinghbyVedanshi Singh
18th June 2025
in ESG BROADCAST, SBTi - Science Based Target Initiative
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SBTi Releases Draft Net Zero Standard for Automotive Sector, Opens Consultation
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The Science Based Targets initiative (SBTi) has released its draft Automotive Sector Net-Zero Standard, marking a significant step in guiding carmakers and parts manufacturers towards setting science-aligned net zero targets.

The draft standard, announced Tuesday, outlines sector-specific criteria for emissions reduction across the automotive value chain—covering operations, supply chains, and vehicles. It forms part of SBTi’s broader sectoral approach targeting high-emitting industries such as cement, aviation, and agriculture, and aligns with the forthcoming Corporate Net-Zero Standard Version 2 (V2).

Among the key proposals, automakers will be required to set targets based on the aggregated GHG emission intensity of vehicles, incorporating emissions from fuel use and end-of-life processing. Companies must also define goals to increase the share of low-emission vehicle (LEV) sales. For parts suppliers, new criteria focus on emissions from material sourcing and manufacturing, as well as disclosure of the proportion of parts sold for LEVs.

“Decarbonizing the road transport sector is a crucial component of meeting our global net-zero goals, and the automotive sector has a substantial role to play as providers of new vehicles,” said Karl Downey, Head of Sector Standards at the SBTi. “The transition to net-zero provides an abundance of opportunity for industry innovation and attractive offers for customers.”

The SBTi estimates that the automotive sector accounts for more than 20% of global man-made greenhouse gas emissions and faces growing risks from climate-related supply chain shocks and rising investor expectations.

The organization has opened a public consultation on the draft, seeking stakeholder input on several aspects including Scope 1–3 emissions aggregation, alignment with Corporate Net-Zero V2, and criteria for low-emission vehicle targets and supplier disclosures.

“The feedback we receive from stakeholders will ensure that the final Automotive Sector Net-Zero Standard enables automakers and auto parts manufacturers to make ambitious and practical greenhouse gas reductions and helps them seize the opportunities of electrification—building resilience and greater efficiency while maintaining competitiveness in a rapidly transforming market,” Downey added.

The consultation is available online and open for feedback on the full draft standard.

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Tags: AutomobilesESGESG BROADCASTESG COMPANIESESG HeadlinesESG NewsESG ReportingESG STANDARDSESG TodaySBTiSustainabilityTransport and Mobility
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Vedanshi Singh

Vedanshi Singh

Science communicator passionate about climate change, ESG, and sustainability, blending psychology with communication for impact.

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