Net Zero Good Practice

Explanation: "The pledge should [...] plan to reach net zero in line with IPCC or IEA net zero GHG emissions modelled pathways that limit warming to 1.5°C with no or limited overshoot" Reference: R-1, page 15

Explanation: "The organization should set interim and long-term targets [...] which stay within the remaining carbon budget for a high likelihood of limiting global warming to 1,5°C above pre-industrial levels". Reference: Chapter 8.2.2, page 16

Explanation: "Pledge at the head-of-organisation level to reach (net) zero GHGs as soon as possible, and by 2050 at the latest, in line with the scientific consensus on the global effort needed to limit warming to 1.5°C with no or limited overshoot." Reference: 'Pledge' starting line criteria, page 2

Explanation: "The SBTi Net-Zero Standard defines corporate net-zero as reducing scope 1, 2, and 3 emissions to zero or a residual level consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C-aligned pathways" Reference: Chapter 2, p. 12

Explanation: "The pathway to net zero is crucial: a 1.5°C limit requires immediate action to achieve a reduction in global CO2 emissions of about 48% from 2019 levels by 2030 (IPCC, 2022)." Reference: Chapter 2, page 14

Explanation : "Science-based targets" is a normative and contested term. It is recommended by over 80% of net zero frameworks & standards. The recommendation is especially strong amongst disclosure and assessment frameworks. Reference: Chapter 3. p 48.

Explanation: "Targets must include emissions reductions from a non-state actor’s full value chain and activities, including scope 1, 2 and 3 emissions for businesses. Where data is missing for scope 3 emissions, businesses should explain how they are working to get the data or what estimates they are using." Reference: R-1, page 17

Explanation: "Net zero targets should include emissions related to all relevant GHGs and all Scope 1, Scope 2 and Scope 3 emissions, as appropriate." Reference: Chapter 8.2.1, page 16

Explanation: "Targets must cover all greenhouse gas emissions including scopes 1, 2 and 3 for businesses and other organisations;" Reference: 'Pledge' starting line criteria, page 2

Explanation: "Long-term SBTs must cover at least 95% of company-wide scope 1 and 2 emissions and 90% of scope 3 emissions." Reference: Chapter 4.3.2, page 24

Explanation: "Short-, medium-, and longer-term targets should be explicit in their coverage of the complete spectrum of emission sources and greenhouse gases, to maximise impact and avoid misleading communication." Reference: Chapter 2.1.1, page 15

Explanation: *85% of resources recommend to cover scope 3, but there are varying definitions of 'material' and 'relevant'. Companies... 1) can define the most material or relevant Scope 3 emissions themselves (including SBTi, CBI, GFANZ, RtZ, BCORP); 2) should include all GHGP Scope 3 sources in targets (e.g., NCI, IWA); 3) should cover their upstream and downstream emissions (ERI, OOP, WBCSD, WMBC); 4) target emissions in their sphere of influence (OOP); 5) target those emissions that can be reasonably quantified (OECD). Reference: Chapter 3 p. 37-38

Explanation: Minimum reduction of >90% for all sectors except of >72% for forest, land and agriculture sector. Illustrative examples of sectoral targets for 2050 compared with 2020 emissions based on the SBTi Net Zero Standard. Reference: Chapter 8.2.2

Explanation: "In the long-term, emissions in the cross-sector pathway are reduced by at least 90% and most sector-specific pathways also reduce CO2 emissions by 90% or more from 2020 levels. [...] For agriculture, the minimum reduction is 72% for long-term targets." Reference: Chapter 3.3, page 19; Annex B2, page 59

Explanation: "Other standards, such as the Net Zero Standard of the Science-Based Targets initiative (SBTi) and the ISO Net Zero Guidelines also require companies from any sector with net-zero targets—except the forestry, land-use, and agriculture sectors—to explicitly commit to emission reductions of at least 90% below 2019 levels across all emission scopes [...]. Companies should only set a net-zero target if they indeed can commit to such deep emission reductions at that point in time." Reference: Chapter 2.1.1, page 16

Explanation: Only indirectly required by referencing sector-specific methods as a "non-state actor should be considered and recognised as net zero aligned [...] when its pledge, targets and pathway to net zero are generated using a robust methodology consistent with limiting warming to 1.5°C with no or limited overshoot verified by a third party (for example by the Science Based Targets Initiative (SBTi),[...], The Transition Pathway Initiative (TPI), the International Organization for Standardization (ISO), among others)." Reference: R-1, page 16

Explanation: "The organization should set interim and long-term targets and determine residual emissions using sector-specific science-based pathways" Reference: Chapter 8.2.2, page 16

Explanation: "The SBTi offers a cross-sector pathway and sector-specific pathways for setting science-based targets. Companies in the power generation sector and the FLAG sectors are required to set SBTs using sector-specific pathways. Other companies can choose to use either the cross-sector pathway or, if available, sector-specific pathways." Reference: Chapter 3.3, page 18-20

Explanation: "Where available in the literature, benchmarks for specific decarbonisation indicators provide key 1.5°C-compatible milestones for specific sectors and regions at the global, country, and corporate level." Reference: Chapter 2.1.2, page 15

Explanation: "Non-state actors should have short‑term targets of five years or less, with the first target set for 2025." Reference: R-2, page 17

Explanation: "The organization should set interim targets every 2 to 5 years on the path to achieving net zero GHG emissions." Reference: Chapter 8.2.6, page 19

Explanation: "Set an interim target to achieve in the next decade, which reflects maximum effort toward or beyond a fair share of the 50% global reduction in CO2 by 2030. " Reference: 'Pledge' starting line criteria, page 2

Explanation: "Near-term targets must have a target year 5-10 years from the date of submission to the SBTi" Reference: Chapter 4.4, page 28

Explanation: "Targets are set with maximum 5-year intervals using terminology, scope and metrics that are directly comparable to other targets." Reference: Chapter 2.2, page 20

Explanation: *Half of resources do not specify the interval frequency of target updates. Of the 20 that do, half state 5 years as the update interval, whilst the remainder either 5-10 years of 2-5 years. Reference: Chapter 3. p 47

Explanation: Not specified but but vague requirement to "halve all types of GHG emissions every decade" to "reflect maximum effort towards the full mitigation potential of the organisation, consistent with a fair share of 50 % global GHG emissions reduction by 2030" Reference: Chapter 8.2.6, page 19

Explanation: "At a minimum, scope 1 and scope 2 targets shall be consistent with the level of decarbonization required to keep global temperature increase to 1.5°C compared to pre-industrial temperatures. This applies to both near-term and long-term targets. [...] At a minimum, near-term scope 3 targets [...] shall be aligned with methods consistent with the level of decarbonization required to keep global temperature increase well-below 2°C compared to pre-industrial temperatures." Reference: Chapter 5.3.4, page 39

Explanation: "Targeted emission reductions across the value chain (excluding offsetting or neutralisation plans) are in line with 1.5°C compatible trajectories or benchmarks for the sector, according to available literature." Reference: Chapter 2.2, page 20

Explanation: Detailed recommendations for company transition plans. Reference: R-4, pages 21-22

Explanation: Detailed requirements for (1) content of mitigation plans, (2) prioritisation of mitigation actions across scope 1, scope 2, and scope 3 emissions. Reference: Chapter 9.1, pages 20-23

Explanation: "Companies should report information on emission reduction initiatives contributing to the achievement of their targets." Reference: Chapter D.7.1, page 79

Explanation: "The methodology below is based on measures identified as most relevant for transition plans in a sector, particularly those that we identify as critically relevant. Critically relevant measures are those that we consider an essential component of credible 1.5 °C compatible transition plans for the specific sector; without these measures a company’s plans are severely undermined and cannot be aligned with the 1.5°C Paris Agreement limit." Reference: Chapter 3.2.1, page 28

Explanation: "All net zero pledges should include specific targets aimed at ending the use of and/or support for fossil fuels." Specific provisions for both coal and oil & gas for businesses. Reference: R-5, page 23-24

Explanation: "Consistent with its mitigation plan, the organization should take actions such as [...] f) transitioning away from dependence on the use of fossil fuels, including phasing out the use of coal; g) establish, apply and disclose financing policies to phase out fossil fuels (e.g. halting coal use by 2030 in OECD countries and 2040 in non-OECD countries), both by selling assets and responsibly retiring them, meeting obligations to local ecology and communities". Reference: Chatper 9.2.2, page 22

Explanation: "Pledge at the head-of-organisation level to reach (net) zero GHGs as soon as possible, and by 2050 at the latest, [...], recognising that this requires phasing down and out all unabated fossil fuels as part of a global, just transition." Reference: 'Pledge' starting line criteria, page 2

Explanation: "Further, companies should have a clear plan to phase out all carbon-intensive infrastructure and products." Reference: Chapter 3.1.1, page 21

Explanation: *10 out of 37 initiatives. Six resources recommending this apply it to all fossil fuels without a specific timeline. Only 1 specifies a year for all fossil fuels, and one only for unabated fossil fuels. Reference: Chapter 4 p. 72

Explanation: "Non-state actors must align their external policy and engagement efforts, including membership in trade associations, to the goal of reducing global emissions by at least 50% by 2030 and reaching net zero CO2 emissions by 2050, followed by net zero greenhouse gas emissions soon after." Reference: R-6, page 25

Explanation: "The organization should take action for positive wider impact, such as [...] c) working with trade associations and initiatives engaging in climate issues to support and amplify emissions reduction efforts and counteract any efforts against climate action; d) influencing local and national policymakers to enhance climate action; e) advocating for appropriate regulation and facilitating measures to enable alignment to achieving net zero across all organizations and halving global GHG emissions by 2030" Reference: Chapter 12.1, page 27

Explanation: "Within 12 months of joining, align external policy and engagement, including membership in associations, to the goal of halving emissions by 2030 and reaching global (net) zero by 2050." Reference: 'Persuade' starting line criteria, page 3

Explanation: "Specifically, companies should publicly disclose [...] clear disclosures on public advocacy, lobbying and policy engagement expenditures and effort on policies that could limit or worsen climate change. Specifically, companies should describe how current and future lobbying and policy engagement activities are consistent or inconsistent with a 1.5°C world." Reference: Chapter D.7.7, page 82

Explanation: *20 out of 37 initatives. is widely recognised by resources. Half of relevant resources (15/30) recommend publicly disclosing trade association affiliations, and more than half of relevant resources (17/30) recommend publicly disclosing lobbying and engagement activities. Few resources articulate exactly what 1.5C aligned lobbying might entail (e.g. in terms of policy demands). One exception to this is ERI, which calls on organisations to advocate for “ a stop for all fossil fuel subsidies". Reference: Chapter 6 p. 93

Explanantion: "Multinational corporations should participate in developing country-led initiatives to decarbonise and provide renewable energy access [...].""All businesses, including state-owned enterprises, with operations in developing countries should demonstrate how their net zero transition plans contribute to the economic development of regions where they are operating, including integrating just transition elements (e.g. skills development for vulnerable communities dependent on high-emitting industries), resilience and other developmental concerns, such as inequality, gender and energy access issues." Reference: R-9, page 31

Explanation: Recommended as higher-level principle as specified in Chapter '12.2 Fair share and just transition' but without providing more specific guidelines and criteria. Reference: Chapter 12.2, page 28

Explanation: "Support a just transition. Explain how you will support communities affected by both climate impacts and the climate transition, and strengthen their participation in achieving the global goal of halving emissions by 2030, seeking to address injustices and build towards a more equitable future" Reference: 'Plan' leadership practices, page 2-3

Explanation: "Specifically, companies should publicly disclose [...] actions planned or implemented that contribute to a just transition [...]. Specifically, the climate transition plan should explain how it considers and addresses social consequences and impacts of mitigation actions, including on race, gender, and intergenerational equity." Reference: Chapter D.7.7, page 82

Explanation: *18 out of 29 relevant initatives recommend disclosure about contributions to a just transition. Aspects include impacts of transition plans on workers and communities, fair distribution of climate impacts and costs across demographics and geographies, and strengthening community participation.

Explanation: "Company transition plans must detail the third‑party verification approach and audited accuracy" Reference: R-4, page 21

Explanation: "Progress towards interim and long-term targets and associated claims of net zero status are verified through a credible and competent third party." "The organization should establish processes to ensure third-party verification of data and claims." Reference: Chapter 5.10, page 10; Chapter 13.2.4, page 33

Explanation: "Specifically, companies should publicly disclose [...] governance structure to oversee the development, implementation and verification of climate transition plans and the review frequency of these plans [...] Results of any third-party assessment and/or verification of the company’s climate transition plan or “readiness for net-zero” by other initiatives." Reference: D.7.7, page 81-82

Explanation: "Businesses should invest in the protection and restoration of ecosystems beyond the emission reductions in their own operations and supply chains in order to achieve global net zero. [...] Contributions may involve payments for ecosystem services, including the purchase and retirement of high-integrity carbon credits, but these credits cannot be used to meet non-state actors’ interim decarbonisation targets." Reference: R-7, page 26

Explanation: "The organization should take action for positive wider impact, such as [...] m) making immediate contributions to the preservation and restoration of natural sinks (e.g. forests, wetlands)." Reference: Chapter 12.1, page 27-28

Explanation: "The SBTi Corporate Net-Zero Standard strongly recommends that companies take immediate action above and beyond their science-based targets to contribute to reaching global net-zero through beyond value chain mitigation (BVCM)." Reference: Chapter D.7.5, page 80-81

Explanation: "The company fulfils SBTi guidance to derive the volume of finance that it contributes to beyond value chain mitigation (BVCM), without claiming compensation of neutralisation of emissions" Reference: Chapter 4.2.1, page 40

Explanation: "High integrity carbon credits in voluntary markets should be used for beyond value chain mitigation but cannot be counted toward a non-state actor’s interim emissions reductions required by its net zero pathway." Reference: R-3, page 19

Explanation: "The organization should not use offsets towards achievement of interim targets." Reference: Chapter 10.1, page 24

Explanantion:"Set twin targets for reductions and removals In addition to your emissions reductions targets, compensate for any unabated emissions year on year through investment in high quality carbon credits, disclose neutralisation milestones that demonstrate the integrity of commitments to neutralise unabated emissions and state how you plan to ultimately neutralise any residual emissions by 2050 through high-quality, permanent removals." "Contribute beyond your own territory / value chain In addition to following a science-aligned net zero pathway to reduce your own emissions and neutralise any residual emissions that remain, contribute toward global (net) zero through beyond value chain / territorial mitigation efforts, such as the purchase and retirement of high-quality carbon credits (emission reductions,avoidance or removals) that do not substitute for nor delay emissions reductions necessary to meet the Pledge." Reference: 'Pledge' leadership practices, page 2; 'Proceed' leadership practices, page 3

Explanation: "Companies should publicly disclose carbon credits which are sourced from outside the company’s value chain (i.e., often referred to as "offset credits") separately from their reported GHG inventory and ensure that they are not counted towards the progress of their science-based targets." Reference: Chapter D.7.6, page 81

Explanation: "The target fulfils all the following criteria [...] Specifically commits to own emission reductions along the value chain that are independent from offsetting through carbon dioxide removals or emission reduction offsets." Reference: Chapter 2.2, page 20

Explanation: *20 out of 28 resources that allow the use of carbon offsets / credits / removals do not allow offsetting to be used to meet interim targets. Instead, guidance stipulates that credits should only be used to meet long-term targets and remove residual emissions. Reference: Chapter 5 p. 81

Explanation: Specified through illustrative sector-specific examples; for <5% of emissions (including scope 3 emissions) for net-zero targets by 2050 compared to 2020 emissions. Reference: Chapter 8.2.2, page 16-17

Explanation: Specified as maximum of 5-10% of emissions covered by net zero target for most sectors except FLAG. Reference: Chapter 3.4, page 19-20; Box 1 in Chapter 3.2, page 18

Explanation: "Companies also commit to reduce emissions to a level of residual emissions consistent with best available scientific guidelines on the definition of residual emissions in each sector." Reference: Chapter 4.2.3, page 42; Chapter 2.1.2, pages 15-16

Explanation:: * There is mixed guidance on what 'residual emissions' are. 10 (1/3) of guidance specifies this as at between 5-10% of emissions, 1 as >10% of emissions (up to 50%). 16 standards do not specify what residual emissions are. Reference: Chapter 5 p. 83

Explanation : A non-state actor should be considered and recognised as net zero or to “have achieved its net zero pledge” when: [...] it has achieved its long‑term net zero target with any residual emissions neutralised by permanent greenhouse gas removals according to reports verified by a credible, independent third party based on publicly available data. Reference: R-1, page 16

Explanation : Specified through illustrative sector-specific examples; for <5% of emissions (including scope 3 emissions) for net-zero targets by 2050 compared to 2020 emissions.

Explanation: Specified as maximum of 5-10% of emissions covered by net zero target for most sectors except FLAG. Reference: Chapter 3.4, page 19-20; Box 1 in Chapter 3.2, page 18

Explanation : "Companies also commit to reduce emissions to a level of residual emissions consistent with best available scientific guidelines on the definition of residual emissions in each sector." Reference: Chapter 4.2.3, page 42; Chapter 2.1.2, pages 15-16

Explanation:: * There is mixed guidance on what 'residual emissions' are. 10 (1/3) of guidance specifies this as at between 5-10% of emissions, 1 as >10% of emissions (up to 50%). 16 standards do not specify what residual emissions are. Reference: Chapter 5 p. 83

Explanation: General requirement that “high‑quality carbon credit should, at a minimum, fit the criteria of additionality [...] and permanence." Reference: R-3, page 19

Explanation: Permanence generally defined as "no GHG is re-released for at least 100 years after storage or within the lifespan of the GHG being counterbalanced" in 'Chapter 5.7 Risk-based approach'. Reference: Chapter 5.7, page 10

Explanation: Only general recommendation in 'Pledge' leadership practices to focus on "permanent" removals. but no specific criteria defined. Reference: 'Pledge' leadership practices, page 2

Explanation: "Measures companies take to remove carbon from the atmosphere and permanently store it, counterbalancing the impact of emissions that remain unabated after the long-term science-based target is achieved." Reference: Chapter 2.3, page 14; Chapter 5.3.6, page 41

Explanation: "The permanence of carbon dioxide removals must be guaranteed over a timeframe of centuries to millenniums." Reference: Chapter 4.1.3, page 36

Explanation: *17 out of 37 initatives recommend permanence criteria as a key criterion in the selection and use of removals offsets credits or sinks. Definitions of 'permanence' vary. Reference: Chapter 5 p. 87

Explanation: No specific definition of permanence, only general requirement that “high‑quality carbon credit should, at a minimum, fit the criteria of additionality [...] and permanence." Reference: R-3, page 19

Explanation: Permanence generally defined as "no GHG is re-released for at least 100 years after storage or within the lifespan of the GHG being counterbalanced" in 'Chapter 5.7 Risk-based approach'. Permanence specifically defined for both high-quality carbon dioxide removals and carbon credits fitting criteria of, among others, (1) credible accounting standards, (2) additionality, (3) MRV by third party, (4) permanence, sufficiently long-term storage and plans to manage potential impermanence, (5) avoided double-counting in 'Chapter 10.1 General'. Reference: Chapter 5.7, page 10; Chapter 10.1, page 23-24

Explanation: No specific definition of permanence, only general recommendation in 'Pledge' leadership practices to focus on "permanent" removals. Reference: 'Pledge' leadership practices, page 2

Explanation: No specific definition of permanence. Reference: Chapter 2.3, page 14; Chapter 5.3.6, page 41

Explanation: "The permanence of carbon dioxide removals must be guaranteed over a timeframe of centuries to millenniums." Reference: Chapter 4.1.3, page 36

Explanation: *17 out of 37 initiatives recommend permanence criteria as a key criterion in the selection and use of removals offsets credits or sinks. Definitions of 'permanence' vary. Reference: Chapter 5 p. 87