Joint response: WBA and ADEME on SBTi Corporate Net-Zero Standard V2 Second Public Consultation

Representing the ACT Accelerate Climate Transition Initiative, ADEME and the World Benchmarking Alliance have submitted a joint response to the Science Based Targets initiative (SBTi) second consultation on its revised Corporate Net-Zero Standard (CNZS).

This updated standard, originally published in 2021, proposes more ambitious and detailed requirements for corporate target-setting. If adopted, CNZS v2.0 could greatly improve the credibility of companies’ climate transition plans by ensuring that targets are science-based, measurable, and aligned with 1.5°C pathways. We, however, express some key remaining concerns.

In our submission, we express support for improvements compared to the first consultation draft, including the obligation for companies to publish transition plans and greater clarity on reporting requirements.

However, we also highlight significant remaining greenwashing risks in key areas: developing relevant alignment and eligible targets creates the risk of straying away from absolute emissions, which are the ones that matter in the end. Furthermore, regarding scope 3, relying on EAC systems puts standards integrity under pressure, as these elements are known to be high-risk based on experience.

In addition, we identify several areas for improvement: better coverage of just transition, improved structuring of transition planning content, and an effective process for monitoring target progress.

Finally, we identify strong synergies with our ACT Step-by-step methodology, which provides companies of different sizes and sectors with a process to build a robust transition plan. We advise that this open-source methodology – alongside others, if any – should be integrated into the standard as a proposed resource.

This submission draws on the shared expertise of ADEME and the World Benchmarking Alliance, co-leaders of the ACT Initiative – a pioneering framework that helps consultancies, companies, and sustainability organisations evaluate the credibility of corporate climate transition plans.