SBTi axes net zero commitments of 200+ companies
Sustainability heavyweights are among those to have their climate pledges 'removed' by initiative
More than 200 companies had their net zero commitments “removed” by the Science-Based Targets initiative (SBTi) last week, including some of the best-known names in corporate sustainability.
Diageo, Vestas Wind Systems, innocent drinks, Unilever and Proctor & Gamble are among 239 firms that missed the deadline to set full net-zero targets, or have chosen not to use SBTi’s standard.
The companies, along with more than 1,000 others, were members of the Business Ambition for 1.5°C (BA1.5°C) campaign, launched in 2019 to help mobilise the private sector as part of the UN’s Race to Zero initiative.
But, while the campaign expired in January, just 351 of its members “have or are in the process” of setting full net-zero targets, according to SBTi, which helped coordinate the project.
Nearly 600 BA1.5°C signatories had promised to set long-term net zero targets. Others had committed to set less ambitious science-based targets.
SBTi noted that 60% of the 239 firms to have their net-zero targets removed on Thursday still have verified near-term targets.
Review of Business Ambition for 1.5°C
In a survey of more than 200 BA1.5°C members, 80% told SBTi they had joined the campaign mainly to “showcase leadership in sustainability”.
But a number said that they had “lost track” of their pledges – in some cases due to changes in staff – while others claimed that they had not fully understood their commitments.
“Perhaps the voluntary nature of having a commitment and the requirement to set targets within strict timelines fueled the confusion,” SBTi suggested in a report, adding that the option to choose between different levels of science-based and net-zero targets may also have been a contributing factor.
Nearly a quarter of those who missed the January deadline said they were not sure they could achieve net zero, with some expressing concerns about the risk of litigation if they failed to fulfil their promises.
Scope 3
But the biggest challenge was value-chain emissions.
“Around half of the companies which responded to the survey cited Scope 3 being too much of a challenge as a barrier to setting net-zero targets,” noted SBTi.
“Relatively few companies are ready to adopt long-term, deep decarbonisation targets for their value chain,” it added, saying that for some there were “too many unknowns”.
Last week, the US Securities and Exchange Commission omitted Scope 3 requirements from its new climate disclosure rules in response to concerns from companies about the difficulties and costs associated with getting accurate data.
Unilever also updated its Scope 3 target last week, from an intensity-based target to an absolute one. Announced in the firm’s latest climate transition plan, the goal is now awaiting approval from SBTi.
Next steps
Going forward, SBTi said it was necessary to “expand its sector-specific standards as a matter of urgency”, and introduced the idea of “regional differentiation” to encourage more participants from the global south to adopt its framework.
The analysis will feed into a major review of SBTi’s corporate net zero standard, due to take place next year.
