The Science Based Targets initiative (SBTi) helps businesses set climate goals that align with the Paris Agreement's 1.5°C target. In 2025, SBTi launched consultations to update its standards, focusing on sector-specific challenges like Scope 3 emissions and carbon removals. Over 855 stakeholders contributed to refining the Corporate Net-Zero Standard V2, ensuring it balances scientific accuracy and practical implementation.
Key points:
- Sector-Specific Consultations: Automotive (June–August) and Power (until November) sectors addressed unique emissions and operational challenges.
- Simplified Participation: Updates made standards more accessible for SMEs and emerging markets.
- Stakeholder Engagement: Input from businesses, experts, policymakers, investors, and civil society shaped the standards.
- New Validation Models: Encouraged ambitious climate goals while addressing practical hurdles.
SBTi’s approach shows how transparent, collaborative processes and tailored standards can help industries meet climate targets effectively.
The Corporate Net-Zero Standard version 2: Launch of the public consultation
How SBTi Engages Multiple Stakeholder Groups
The Science Based Targets initiative (SBTi) has developed a consultation process that brings together diverse expertise while staying anchored in scientific principles. Instead of applying a generic approach, SBTi has created multiple pathways for stakeholders to share their knowledge and experiences.
This framework operates through three main channels: public consultations open to all stakeholders, expert working groups providing specialised technical input, and pilot testing phases that test standards in practical scenarios. Together, these methods ensure a blend of theoretical and practical insights, which are explored in detail below.
Different Stakeholder Groups and Their Contributions
SBTi actively involves five key stakeholder groups, each offering distinct perspectives that shape the standards. Here's how each group contributes:
- Businesses: Provide practical feedback on challenges like Scope 3 emissions or value chain actions, which are often cited as major hurdles. Their input helps create frameworks that are practical and implementable.
- Technical Experts: Offer scientific reviews to ensure standards align with the latest climate science, regulations, and established frameworks. This guarantees the standards' credibility and precision.
- Policymakers: Share insights into regulatory landscapes and compliance needs, ensuring the standards are compatible with legal requirements.
- Investors: Focus on financial viability and market expectations, helping to assess the economic feasibility of proposed standards.
- Civil Society Organisations: Advocate for environmental integrity and public accountability, ensuring that standards remain transparent and trustworthy.
| Stakeholder Group | Primary Contribution | Impact on Standards |
|---|---|---|
| Businesses | Practical feedback on implementation | Development of actionable frameworks |
| Technical Experts | Scientific validation and rigour | Alignment with climate science |
| Policymakers | Regulatory insights | Legal and compliance compatibility |
| Investors | Financial and market perspectives | Economic feasibility |
| Civil Society | Advocacy for transparency and accountability | Credibility and public trust |
These contributions are integral to SBTi’s dual-track system, which ensures the standards are not only scientifically sound but also practical for businesses to adopt.
Alberto Carrillo Pineda, SBTi’s Chief Technical Officer, highlights the importance of this collaborative approach:
"The draft standard reflects lessons drawn from thousands of businesses worldwide".
Balancing Science and Practicality
With input from a wide range of stakeholders, SBTi employs a dual-track validation process to strike a balance between scientific rigour and real-world feasibility. This involves a combination of detailed scientific reviews and practical pilot testing, with standards tailored to suit organisations of different sizes, from small businesses to large corporations.
For example, the draft Corporate Net-Zero Standard V2 introduces simplified requirements aimed at making participation easier for small to medium-sized enterprises (SMEs) and businesses in developing economies. These adjustments lower barriers to entry without compromising the scientific credibility of the standards.
Sector-specific standards also consider business scale. For instance, the Automotive Sector Net-Zero Standard applies to automakers producing over 10,000 vehicles annually and parts manufacturers earning at least 20% of their revenue from automotive components. Smaller companies below these thresholds can opt for either the sector-specific standard or the broader Corporate Net-Zero Standard V2.
The pilot testing phases play a crucial role in bridging theory and practice. In Phase 1, surveys are conducted to gather feedback, refining the draft standards. Phase 2 involves selected companies testing the updated drafts with real-world data, helping to identify challenges and validate assumptions before the standards are finalised.
How SBTi Tailored Consultations for Different Sectors
Every industry faces its own hurdles when it comes to reducing emissions. Recognising this, SBTi avoided a one-size-fits-all strategy and instead developed consultation processes tailored to the specific needs and challenges of different sectors. This approach allowed them to incorporate industry-specific insights directly into their frameworks, ensuring the standards were both effective and relevant.
This customised method was particularly crucial for industries like automotive and power, which together account for a large share of global emissions. By designing sector-specific consultations, SBTi ensured the standards were grounded in science while remaining practical for implementation across diverse industries.
Automotive and Power Sector Consultation Methods
For the automotive and power sectors, SBTi fine-tuned its consultation process to address their unique challenges while aligning with broader standards.
The automotive sector consultation ran from 12 June to 11 August 2025. This sector, responsible for over 20% of global man-made greenhouse gas emissions, required updated criteria that covered all aspects of operations and supply chains, spanning Scopes 1, 2, and 3. The draft Automotive Sector Net-Zero Standard introduced new measures focusing on material sourcing and manufacturing processes.
Key updates included an aggregated emissions indicator for vehicle manufacturers and regional emissions pathways to reflect economic and market variations worldwide. Additionally, the previous Zero Emissions Vehicles Declaration was replaced with criteria aimed at boosting the share of low-emission vehicle sales.
The power sector consultation, which runs until 3 November 2025, targeted companies across the entire electricity value chain. This includes generation, transmission, distribution, storage, trade, and retail. As the power sector accounts for nearly 40% of global energy-related emissions, the consultation addressed its dual role as both a major emitter and a critical player in enabling decarbonisation across other industries.
| Aspect | Automotive Sector Consultation | Power Sector Consultation |
|---|---|---|
| Consultation Period | 12 June – 11 August 2025 | Until 3 November 2025 |
| Sector Focus | Vehicle and parts manufacturing, supply chain emissions | Electricity generation, transmission, distribution, etc. |
| Key Emissions | Scope 1, 2, and 3 (including material sourcing and manufacturing) | Scope 1 and 2 (direct and indirect operational emissions) |
| New Criteria | Aggregated emissions indicator, regional pathways, low-emission vehicle sales | Updated sector-specific criteria replacing prior guide |
| Applicable Entities | Automakers (>10,000 vehicles/year), key parts manufacturers | All power sector companies |
| Unique Challenges | Supply chain complexity, regional market differences | Infrastructure risks, enabling decarbonisation |
Both consultations aligned with the Corporate Net-Zero Standard V2, ensuring consistency across SBTi's standards while addressing the specific needs of each sector.
How SBTi Used Sector-Specific Feedback
SBTi refined its standards further by integrating feedback from targeted consultations. During these periods, they invited input from companies, policymakers, investors, and civil society. This feedback, combined with input from expert working groups and pilot testing, helped fine-tune the draft standards.
In the automotive sector, much of the feedback centred on challenges related to aligning with the broader Corporate Net-Zero Standard V2. Participants also evaluated the practicality of the aggregated indicators and the regional emissions pathways. This input led to more detailed methodologies for calculating emissions, including well-to-wheel approaches and default data inputs.
For the power sector, feedback highlighted the industry’s unique position as both a significant emitter and an enabler of decarbonisation. This prompted the development of criteria that address transition risks while promoting opportunities in low-emission electricity generation. The resulting draft standard replaced SBTi’s previous Quick Start Guide for Electric Utilities with a comprehensive framework designed to accelerate climate action across the sector.
Dr Kornelis Blok, Chair of the SBTi Technical Council, summed up the importance of this feedback:
"The draft standards serve as comprehensive frameworks aligned with the latest scientific research and global best practices, ensuring they are both robust and practical".
SBTi also tackled accessibility issues raised during consultations, particularly for SMEs and companies in emerging markets. Simplified participation options were introduced where appropriate, reflecting feedback on the need for frameworks that balance practicality with scientific integrity. These updates were validated through real-world testing to ensure their effectiveness.
For UK businesses, tools like EcoHedge’s automated carbon accounting software can simplify data collection and reporting. By providing reliable emissions data across all scopes, companies can better engage in sector-specific discussions and confidently implement these tailored standards.
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What Businesses Can Learn About Stakeholder Engagement
Drawing insights from SBTi's consultation methods, businesses can adopt similar strategies to improve how they engage with stakeholders. SBTi's approach highlights how careful planning, openness, and the use of advanced tools can elevate stakeholder engagement into a powerful mechanism for driving better business outcomes.
Building Transparent and Inclusive Engagement Processes
SBTi sets an example by prioritising openness and broad participation. By openly publishing draft standards and actively seeking input from a variety of groups - such as businesses, policymakers, and technical experts - SBTi ensures meaningful contributions. Businesses can follow suit by making consultation materials publicly available and providing summaries that show how feedback influenced final decisions. This transparency fosters trust and encourages active participation.
To ensure inclusivity, companies can identify key stakeholder groups like customers, suppliers, regulators, and local communities. Proactive outreach can help include voices that are often overlooked, such as SMEs and organisations from emerging markets. SBTi’s efforts to simplify requirements for these groups underline the importance of accessibility in engagement processes. The 227% rise in companies adopting comprehensive climate targets further illustrates how science-based frameworks and inclusive engagement can drive real impact.
Timing and Feedback Loops in Consultation Processes
SBTi’s sector-specific consultations emphasise the value of clear timelines and iterative feedback cycles. By allowing extended consultation periods and multiple opportunities for stakeholders to provide input, SBTi ensures thorough engagement. For instance, the Corporate Net-Zero Standard V2 consultation remained open until 1 June 2025, giving stakeholders ample time to review technical details and contribute meaningfully.
Businesses can replicate this by planning consultations well in advance, scheduling several rounds of feedback, and clearly communicating deadlines. Iterative feedback cycles not only strengthen relationships but also lead to better outcomes. To support these efforts, timely and accurate data becomes essential, which is where advanced tools can make a significant difference.
Leveraging Technology for Better Engagement
SBTi’s use of expert feedback and pilot testing highlights how technology can simplify stakeholder engagement. Automated tools, for instance, can streamline carbon reporting and improve collaboration. With 80% of data being unstructured and employees spending nearly half their time preparing data for carbon reporting, advanced platforms are becoming indispensable.
EcoHedge’s automated carbon accounting software is a prime example. It tracks emissions in line with the Greenhouse Gas Protocol and allows businesses to share sustainability data transparently. Its collaborative features enable finance teams, operational staff, and external advisors to work together seamlessly, with tools for assigning roles, commenting, and maintaining review trails.
Conclusion: Putting SBTi Consultation Lessons into Practice
SBTi consultations offer a clear framework for engaging stakeholders across various sectors. The growing recognition of a science-driven approach is evident, with a 30% increase in target submissions.
The consultation process itself highlights vital lessons, such as the importance of transparency, inclusivity, and continuous refinement. Public drafts and diverse feedback not only strengthen the credibility of SBTi's standards but also encourage broader acceptance. The recent two-round consultation process is a prime example of how this method works effectively.
Sector-specific engagement further strengthens this approach. By tailoring consultations to industries like automotive and power, SBTi acknowledges that each sector faces distinct emissions challenges and operational demands. This ensures that the standards developed are both scientifically rigorous and practical for real-world application - a balance businesses should strive to maintain in their own stakeholder engagement efforts.
Another critical factor is the timing and structure of these consultations. Clear and extended consultation periods allowed stakeholders to provide well-considered input while keeping the process on track. This thoughtful scheduling boosts participation and ensures meaningful contributions without losing momentum.
Technology also plays a key role in scaling and improving these processes. With 80% of data being unstructured and employees dedicating nearly half their time to preparing data for carbon reporting, automation becomes essential. Tools like EcoHedge (https://ecohedge.com) simplify carbon accounting and facilitate smoother collaboration with stakeholders.
The introduction of mandatory five-year target reviews in SBTi's new guidance, effective from 18 December 2025, reflects the value of ongoing engagement and adaptation. This iterative approach ensures that climate strategies stay aligned with scientific advancements and evolving stakeholder expectations, fostering long-term success rather than short-term fixes.
To advance your organisation’s sustainability efforts, focus on setting clear consultation timelines, prioritising high-quality data, and leveraging automation. These steps can help create a more effective and forward-thinking climate action plan.
FAQs
How does the SBTi ensure its standards are both scientifically sound and practical for businesses to follow?
The Science Based Targets initiative (SBTi) creates standards that are grounded in climate science and shaped by insights from a wide range of stakeholders. These guidelines are built to align with the Paris Agreement's objectives, helping businesses set targets that genuinely support efforts to limit global warming.
To ensure these standards are practical, SBTi works closely with industry specialists, academics, and businesses. Together, they craft frameworks that are not only thorough but also achievable, enabling organisations to embed sustainability into their operations while staying true to science-based objectives.
What challenges were highlighted in the automotive and power sector consultations, and how do they influence efforts to reduce global emissions?
The automotive and power sectors are grappling with major obstacles as they work towards adopting low-carbon technologies. These challenges include meeting tougher emissions standards and managing increasingly intricate supply chains. Balancing the need to decarbonise operations while keeping up with rising energy and mobility demands adds another layer of complexity.
These difficulties play a critical role in shaping global efforts to cut emissions. They affect how quickly new solutions emerge, how industries comply with regulations, and how well different sectors collaborate. Tackling these issues head-on is essential to reaching net-zero goals and promoting sustainable progress on a global scale.
What steps can SMEs and businesses in emerging markets take to align with the updated SBTi standards?
Small to medium-sized enterprises (SMEs) and businesses in emerging markets can take practical steps to align with the updated SBTi standards. Start by getting acquainted with the latest guidance from SBTi to ensure your sustainability goals are grounded in science and contribute to global net-zero ambitions. Work closely with stakeholders to identify the areas where emissions are highest and focus on strategies to reduce them.
Leveraging tools like automated carbon accounting software can make it easier to track and report emissions throughout your operations. These tools allow you to measure your carbon footprint accurately, set realistic reduction targets, and share your progress clearly. Keeping stakeholders informed with transparent updates not only builds trust but also encourages collective efforts towards achieving sustainability goals.
