The new Science-Based Target Initiative (SBTi) Standard (referring to Corporate Net-Zero Standard, Financial Institutions Net-Zero Standard, Small and Medium Enterprises (SME) Net-Zero Standard, and Sector-specific Standards) aims to provide companies with guidelines to set and implement targets for mitigating their entire value chain emissions and transforming business practices to achieve net-zero emissions by 2050 in an equitable and sustainable manner.

The implementation of new SBTi Standard shall be informed by the best practices in climate target setting and mitigation, with auditable quantitative and qualitative metrics to meet all local regulatory requirements; it shall also be designed to support accurate and transparent processes compatible with other standards.

An effective implementation of the new standard starts by setting key structures of commitment and governance. These include Executive Leadership and Board of Trustees (to adopt implementation action-plan, ensure process integrity and credibility in line with corporate sustainability vision and strategic goals), Technical Council (to review implementation effectiveness, resolve major concerns in terms of stakeholders engagement, applicability of relevant regulation, code of conduct, loyalty policy, conflict of interest, etc.), and Technical Department (to implement stakeholders’ engagement strategies, feasibility study, action-plan).

The new SBTi Standard requires deep decarbonisation of 90-95% emissions by 2050, and sets out near and long-term targets for entire value chains. The remaining 5-10% emissions should be removed from the atmosphere and sequestered in carbon sinks. Companies are also encouraged to invest in societal carbon offset projects that reduce emissions outside their boundary. The new Standard provides solutions to certify these targets and remedy the wide disparity and lack of comparability between the objectives announced by companies and their actual achievements.

The achievement of these targets is supported by salient implementation steps. These include disclosing greenhouse gas emissions across the entire value chain; identifying and prioritising climate-relevant emissions sources; establishing targets and policies for mitigation; implementing actions to achieve targets; measuring effectiveness of interventions; and communicating progress and performance. Aligning with the new SBTi Standard is to acquire international recognition for the corporate climate approach; Companies are also provided with high competitiveness, international exposure, investors’ attractiveness for business development and prosperity.

This article is contributed by Ir Dr Alex Gbaguidi with the coordination of the Environmental Division.