Dive Brief:
- The Science Based Targets initiative released a revised draft net-zero standard for the automotive industry on Tuesday, redefining low-emissions vehicles and making updates to better align it with the Corporate Net-Zero Standard update that’s in development.
- SBTi released a first draft of the auto sector standard last June for public consultation, and the latest version looks to incorporate those learnings. The second draft also kicked off a second consultation phase for the standard that will run until March 22.
- The standard is designed to guide automakers and auto parts manufacturers through the process of setting climate targets that align with reaching net-zero status by 2050.
Dive Insight:
The Automotive Sector Net-Zero Standard seeks to replace the portions of SBTi’s Land Transport Science-Based Target-Setting Guidance that concern the auto industry, which was last updated in October 2024.
SBTi, an organization that validates that corporate climate targets align with leading science, said the consultation period for the first draft received over 100 responses, which were incorporated into the new draft along with feedback from an advisory group and technical council.
SBTi’s Head of Sector Standards Karl Downey said in a Tuesday press release that the new draft focused on implementing feedback from the first consultation phase and focusing on "adaptability and usability.”
“Decarbonizing the road transport sector is vital in meeting global net-zero goals, and ensuring the standard can accommodate the operational contexts of different companies will help the whole sector,” Downey said. “Creating a final standard that enables companies to benefit from the many opportunities the transition provides will help automakers and auto parts makers to transform their ambition into practical, credible climate action.”
Changes made in the second draft include defining “low-emissions vehicles” as “zero-emissions vehicles” to give automakers additional clarity. The updated standard also puts a focus on corporate scope 3 emissions derived from use of sold products. Automakers now have the flexibility set net-zero targets based on either the share of zero-emission vehicles sold or based on
SBTi called on companies in the industry to pilot the standards in August, and the organization said the pilot will run concurrently to the second consultation phase. The changes to the standard are designed for interoperability with SBTi’s Corporate Net Zero Standard, which the organization has been working to update since last March.
Over the past year, the organization has also worked on industry-specific standards for the power sector; the financial industry; forest, land and agriculture; and the chemicals sector.
SBTi has validated climate targets for more than 10,000 companies, which collectively represent over 40% of the global market capitalization. Companies with validated targets have seen benefits to their corporate reputations, climate ambition and decarbonization pace, according to a report SBTi released in November.
