French retail giant Carrefour opts for ACT Initiatives over SBTi for its net-zero pathway. (Photo: iStock)
Following the removal of 239 companies' net-zero commitments by the Science Based Targets initiative (SBTi) last year, an investigation by an online media outlet reveals that only 7% of those companies have obtained SBTi validation for their net-zero targets. Some firms have chosen to pursue alternative standards, while others are taking a wait-and-see approach as SBTi updates its own criteria.
SBTi no longer sole net-zero standard for companies
According to a study by U.S.-based sustainability media group Trellis, just 17 out of the 239 delisted companies have had their targets revalidated by SBTi over the past year. While some may still be undergoing the validation process, most are still labeled “Commitment Removed” on SBTi’s website.
Trellis reached out to 10 of these companies, receiving meaningful responses from only three. Consumer goods giant Unilever confirmed it remains committed to reaching net-zero by 2039, more than a decade ahead of SBTi’s 2050 baseline.
A Unilever spokesperson emphasized the company aligns its actions with the Intergovernmental Panel on Climate Change (IPCC)’s definition of net-zero, which differs from SBTi’s framework, though the spokesperson did not elaborate on the specific differences.
Meanwhile, French retail group Carrefour stated it had received validation through the Accelerate Climate Transition (ACT) initiative, led by the World Benchmarking Alliance. The company has set targets aligned with the Paris Agreement’s 1.5°C goal and is requiring domestic suppliers to do the same.
However, Carrefour’s current net-zero commitment may not pass SBTi validation, as it does not include Scope 3 emissions from its supply chain.
Microsoft, Unilever, and Walmart have all indicated they are closely monitoring how SBTi revises its corporate standards. (Image: RECCESSARY)
Companies explore alternatives as SBTi faces credibility test
Some companies have aligned with The Climate Pledge, an initiative launched by Amazon, which has attracted participants like Microsoft, Procter & Gamble (P&G), and Unilever, all aiming to reach net-zero by 2040.
Unlike SBTi, The Climate Pledge is not a formal standard but a voluntary commitment, offering significantly more flexibility, especially in the use of carbon offsets. While SBTi allows companies to offset only 10% of their residual emissions, The Climate Pledge imposes no such cap and uses a broader definition of acceptable credits.
Microsoft, Unilever, and Walmart have all indicated they are closely monitoring how SBTi revises its corporate standards. SBTi has released a draft update to its Corporate Net-Zero Standard, now open for public consultation. The proposal has sparked widespread industry discussion, including open letters, and the initiative is expected to publish consolidated feedback later this year.
Source: Trellis(1), (2), SBTi, Edie
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