A potential step forward – but only if key issues are addressed

The NewClimate Institute provides feedback on the Science Based Targets initiative's (SBTi) draft Corporate Net-Zero Standard (CNZS) v2.0, noting significant advances while identifying critical areas for improvement regarding transparency, integrity, and reporting requirements.

• The NewClimate Institute views the SBTi's proposed method for setting target boundaries based on a company's own identification of relevant scope 3 emission sources as an improvement that increases transparency and covers a larger proportion of emissions.
• While the CNZS v2.0 draft encourages granular data reporting on major emission sources, the NewClimate Institute argues that transition-specific "alignment targets" are underrepresented and should be included alongside GHG emission reduction targets to better guide climate strategies.
• The draft's requirement for companies to set scope 2 targets based on location-based emissions and match renewable energy procurement hourly and on the local grid is seen as a strength, though the NewClimate Institute warns that the wording of this criterion is vague and open to interpretation.
• The NewClimate Institute opposes the draft's proposal to allow indirect mitigation measures beyond the activity pool level to count toward scope 3 targets, suggesting instead that only measures within the activity pool should count, and only in exceptional cases.
• Regarding Forest, land and agriculture (FLAG) emissions, the NewClimate Institute suggests requiring commodity-specific targets when such commodities represent 10% or more of a company's emissions, rather than keeping it optional as per current SBTi FLAG guidance.
• The NewClimate Institute supports the requirement that CO2 emissions be neutralised with CO2 removals durable for at least a thousand years, but notes that durability requirements for other greenhouse gases require further discussion.
• The NewClimate Institute supports the draft's approach to recognize Beyond Value Chain Mitigation (BVCM) as an "optional leadership practice" for companies taking responsibility for ongoing emissions during the transition to net zero.
• To ensure targets remain up-to-date and conform to the latest standards, the NewClimate Institute recommends that existing validations be renewed every two years instead of every five years.

APA

NewClimate Institute (2025). A potential step forward – but only if key issues are addressed. http://www.newclimate.org/resources/publications/input-for-the-update-of-the-sbti-corporate-net-zero-standard

Chicago

NewClimate Institute. A potential step forward – but only if key issues are addressed. 2025. http://www.newclimate.org/resources/publications/input-for-the-update-of-the-sbti-corporate-net-zero-standard.

Wikipedia

{{cite press release |author=NewClimate Institute |title=A potential step forward – but only if key issues are addressed |date=10 April 2025 |url=http://www.newclimate.org/resources/publications/input-for-the-update-of-the-sbti-corporate-net-zero-standard |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{newclimateinstitute2025potential, author = {{NewClimate Institute}}, title = {{A potential step forward – but only if key issues are addressed}}, publisher = {NewClimate Institute}, year = {2025}, month = apr, url = {http://www.newclimate.org/resources/publications/input-for-the-update-of-the-sbti-corporate-net-zero-standard}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }