SBTi Defends Governance Process Amid Bloomberg Scope 3 Report Controversy

The Science Based Targets initiative publicly rebutted a Bloomberg article alleging irregularities in its approach to Scope 3 emissions and the Corporate Net-Zero Standard revision. SBTi CEO Luiz Amaral stated no standards have been changed and that any revision must pass through a structured governance procedure including public consultation and board approval.

The Bloomberg article, published on 29 May 2024, raised questions about internal governance and potential changes to SBTi's Scope 3 target-setting methodology. In its response, the SBTi clarified that its Standard Operating Procedure requires research, drafting, public consultation, review by the Technical Council and adoption by the Board of Trustees before any standard change takes effect. The initiative noted that over 400 pieces of evidence were submitted in response to a September 2023 Call for Evidence on Scope 3, and that a results report on emission reduction credits was expected by mid-2024.

The controversy centred on whether SBTi's Board of Trustees had moved to allow Environmental Attribute Certificates (EACs) to count towards Scope 3 abatement without full process compliance. The SBTi denied this, stating the board's strategic steer is an appropriate function and that no decisions on standards were pre-empted. The initiative also addressed safeguarding allegations, confirming it has formal policies and an Employee Assistance Program covering its globally distributed staff.

A discussion paper on the preliminary evolution of SBTi's conceptual framework for Scope 3 target setting was scheduled for release in July 2024, alongside a draft standard for public consultation expected by end of 2024. The SBTi reiterated its commitment to including perspectives from the Global South in the consultation process, a constituency it acknowledged has been underrepresented in prior debate. Final determination on EACs for Scope 3 abatement will be evidence-driven and follow established governance procedures.

Key figure — Over 400 individual pieces of evidence submitted to the 2023 Call for Evidence