The race to a zero carbon, resilient economy has reached a new phase where commitments must translate into delivery. Collectively developing net zero methodologies and building consistency around their interpretation is a complex process, requiring ongoing iterations and refinements in light of the latest science, emerging technologies and accelerating policy developments. Ultimately, this work needs to lead to the development and implementation of strong ambitious regulatory frameworks, that require all actors to transition to net zero in line with the science.
As part of this evolution, today’s publication of the Corporate Climate Responsibility Monitor, produced by NewClimate Institute and Carbon Market Watch, makes valuable and timely contributions to this discussion.
As we head towards COP27, we look forward to working with NewClimate Institute – alongside our other partners – in the annual criteria consultation process for Race to Zero. These discussions will address key issues highlighted in today’s report, including definitions of Scope 3, guidance on transition plans, as well as a deeper consensus around what constitutes a fair share of halving emissions by 2030.
Since the launch of the Race to Zero campaign in 2020, we have worked with our partners in an ongoing, collaborative process to improve minimum standards and accelerate the delivery of best practice year on year. All campaign members must meet a ‘starting line’ criteria, meaning that they pledge a net zero target in line with global efforts to limit warming to 1.5C, submit a plan, and report back annually on progress.
SBTi is a valued partner of the Race to Zero and remains a foundation for driving credible corporate action on climate; from introducing the concept of science based targets in 2015 to advancing the frontier of climate action in 2021 with the launch of the Net Zero Standard. Its companies with a validated target, aligned with 1.5°C-2°C, have cut emissions by 25% between 2015-2020.
Meanwhile, although we are seeing positive signs of progress, we invite the companies in the report, and indeed all actors in the Race to Zero, to enhance their transparency, measurement, and reporting of their commitments and the progress of their delivery to date. Only then will we build trust in climate action and meet the goals of the Paris Agreement.
Accountability and strong governance in our community will also play an important role in ensuring these targets are being met. This is why, in parallel to our 2022 Criteria Consultation process, we are developing and launching an accountability mechanism – with the support of our Race to Zero Partners and independent experts – which will impact non-compliant members.