SBTi Publishes Scope 3 Discussion Paper and Carbon Credit Evidence Review

The Science Based Targets initiative released four technical publications in July 2024 as an early step in revising the Corporate Net-Zero Standard, including a Scope 3 Discussion Paper and a synthesis report on evidence related to the effectiveness of carbon credits. The publications informed the public consultation on the draft revised standard expected later in 2024.

The four publications released by SBTi include a Scope 3 Discussion Paper outlining initial thinking on potential changes to value chain target-setting; all evidence submitted through a 2023 open call on Environmental Attribute Certificates; a synthesis report assessing the SBTi's review of evidence on carbon credits in corporate climate targets; and an independent systematic review by a third party of peer-reviewed literature on carbon credit effectiveness. Scope 3 emissions account for 75 percent of the average company's carbon footprint, making them the most significant—and most challenging—area of corporate decarbonisation.

The Scope 3 Discussion Paper outlines three illustrative scenarios for the potential use of carbon credits in science-based target contexts, none of which involve using credits as a substitute for direct emissions reduction within the value chain. Instead, scenarios explore credits as evidence of value chain decarbonisation, for permanent carbon storage to counterbalance residual emissions, or as part of an expanded corporate responsibility boundary above and beyond existing requirements. Mixed findings from the evidence review indicate that further work is needed before conclusions can be drawn.

A draft Corporate Net-Zero Standard was expected to be released for public consultation toward the end of Q4 2024, incorporating learnings from the technical publications. SBTi invited stakeholders to provide feedback on the Scope 3 Discussion Paper directly via a dedicated feedback form. Over 5,000 companies had received validated targets and 3,000 more had committed to submit targets as of July 2024. Chief Technical Officer Alberto Carrillo Pineda reiterated that direct decarbonisation must remain the priority for corporate climate action.

Key figure — Scope 3 emissions account for 75% of the average company's carbon footprint