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 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 made to companies A to publish transition plans and a greater clarity of reporting requirements.
We however also highlight remaining significant greenwashing risks in some key areas: developing relevant alignment and eligible targets generate the risk to strive away from absolute emissions which are the one that matters in the end. Furthermore, on scope 3, relying on EACs systems put under pressure standards integrity, these elements being at high risk by experience.
In addition, we spot some areas for improvements: covering better just transition, ensuring a better structuration of transition planning content and an efficient monitoring process of target progress.
Finally, we identify efficient synergies with our ACT Step-by-step methodology that provides companies a different size 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 in 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.