Live AU Certificate Prices Twitter Linkedin-in Youtube Buy and Sell Global RECs Contact

SBTi Launches World-First Net-Zero Corporate Standard

Share this article

Net-Zero Emissions is the buzzword of 2021 and, in the lead, up to COP26 in Glasgow, companies, cities, and countries are setting and announcing net-zero targets. 

There is broad recognition, that in order to avoid the worst effects of climate change, global temperatures need to stay below 1.5°C.  In order to have a 50% chance of not exceeding 1.5°C, global emissions need to halve by 2030 and reach net zero by 2050.  

Whilst the science is clear, what isn’t clear is what it actually means to set a net-zero target. 

“The Net-Zero Standard gives companies a clear blueprint on how to bring their net-zero plans in line with the science, which is non-negotiable in this decisive decade for climate action. Because we are running out of time.” 

Johan Rockstrom, Director of the Potsdam Institute for Climate Impact Research (PIK) and Professor in Earth System Science at the University of Potsdam

The IPCCIntergovernmental Panel on Climate Change defines net-zero emissions as being when “anthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period”, however, this is net-zero emissions as defined from a global level, and there is a lack of consistency about what it means on an individual organisation level.  

It is seen that net-zero emissions targets being adopted by businesses don’t align on the timeframe for reaching net-zero, the inclusion of other greenhouse emissions than CO2e, and the extent of the emissions boundary. A critical piece of science-based target setting is halving emissions by 2030. 

But wait, why is it important to immediately and rapidly reduce emissions now or within next 10 years?  

We are given a carbon budget to limit temperature warming and the longer we wait to act, the wider the temperature range. The IPCC AR6 Report determined that we have a total carbon budget of 500 Gtonnes of CO2 to give the world a 50% chance of keeping temperatures below 1.5 degrees C – we need urgent action now to reduce emissions and must reach net-zero carbon emissions no later than 2050. 

On 28 October, the Science-Based TargetsThe science based targets initiative (SBTi) is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). Targets are considered ‘science-based’ if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. SBTi has specific sectoral guidance and is working on a Net-Zero standard. Initiative (SBTiScience Based Targets initiative) launched the world’s first-ever corporate framework for net-zero target setting. This standard provides guidance, criteria, and recommendations companies need to set science-based net-zero targets consistent with limiting global temperature rise to 1.5°C. 

Here are the four key elements of the Net Zero Standard Framework: 

This is exciting news as it’s the first time the SBTi has clarified the acceptable level of genuine decarbonisation and carbon offsets permitted within a science-based net-zero target. The SBTi is also committing to working closely to set standards for monitoring, reporting and verification, with more expected policies around what and how to report. 

The difficulty for many companies is the strategic process behind emissions reduction, both in planning and implementation. At Northmore Gordon, we will get you started on the right foot and can provide ongoing support to make sure that you reach your target goals. We’re all in this together, you can feel confident that support is available to assist you on your Net-Zero journey. 

You may also like:
Are you ready to publish your mandatory Climate Change Mitigation and Adaptation Plan (CCMAP) for NSW sites with Environment Protection Licences? 
Turning Global Energy trends into strategic advantage: Opportunities for Australian businesses.
Discover what worked in 2025 and where to focus in 2026.

Latest Updates

ASRS Group 3: are you in scope and don’t know it?

Correct as at 13 September 2026.  If your company is a large proprietary company, you may be legally required to report under Australia’s mandatory climate

Read More »

Welcome to our August & September 2026 Compliance Update.

This edition confirms Northmore Gordon’s accreditation for three new PDRS battery activities, tracks the VEUVictorian Energy Upgrades is a Victorian government energy efficiency program that

Read More »

Australian Certificate Markets – August 2026 Update 

Price Summary  Certificate  Open  Close  Range  Effective cap  Movement / Reason  PRC  $2.70  $3.35  $2.70 – $3.35  $3.80  ▲ Rallied from 14 August on the

Read More »

Where’s the value in renewable heat?

Most renewable heat conversations start with a technology question: heat pump, biomass, biogas, or electrify the whole boiler? It’s the wrong starting point. The full

Read More »

Beyond annual matching: The evolution of time-stamped RECs

For more than a decade, Renewable Energy Certificates (RECsI-RECs, GOs, TIGRsTradeable Instrument for Global Renewables (TIGR) Registry is an online platform for tracking and transferring renewable energy certificates (RECS), enabling developers to generate,verify and sell RECs. The registry is run by APX, a US company that provides infrastructure for environmental markets around the world., LGCs, ZNECs, J-Credits) have underpinned global renewable electricity procurement. By purchasing RECs equivalent to

Read More »

Solar irrigation upgrades: Don’t let certificate funding go unclaimed 

Irrigation pumps are one of the biggest hidden costs on an Australian farm. In particular, if they run on diesel, they’re exposed to fuel price swings, need constant

Read More »

Get in touch

Australia

1300 854 561 (Advisory)

1300 878 500 (Certificates)

Melbourne

Suite 1, Level 4

607 Bourke Street

Melbourne

VIC 3000

Singapore

+65 6690 2480



Singapore

1 Keong Saik Road,

Singapore 089109

Stay up to date

mailto:%20info@northmoregordon.com https://twitter.com/northmoregordon https://www.linkedin.com/company/northmore-gordon-pty-ltd https://www.youtube.com/channel/UCdGc6mABpL2XxVUCrVjYQ1g

Alternatively, complete the form and we will be in

touch with you.

https://northmoregordon.com
Services
Sectors
Upgrades
Certificates
Government Schemes
Helpful Links

What did the Science Based Targets initiative (SBTi) launch on 28 October 2021?

On 28 October 2021, the Science Based Targets initiative (SBTi) launched the world's first-ever corporate framework for net-zero target setting, called the Net-Zero Standard. It provides guidance, criteria, and recommendations companies need to set science-based net-zero targets consistent with limiting global temperature rise to 1.5°C.

What organizations make up the Science Based Targets initiative (SBTi)?

The Science Based Targets initiative (SBTi) is a partnership between CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF).

What are the four key elements of the SBTi Net-Zero Standard Framework?

The four key elements are: (1) setting near-term science-based targets—5-10 year emission reduction targets in line with 1.5°C pathways; (2) setting long-term science-based targets—reducing emissions to a residual level in line with 1.5°C scenarios by no later than 2050; (3) beyond value chain mitigation—taking action to mitigate emissions beyond the company's value chain, such as purchasing high-quality jurisdictional REDD+ credits or investing in direct air capture (DAC) and geologic storage; and (4) neutralization of residual emissions—counterbalancing GHGs released after achieving the long-term target through permanent removal and storage of carbon from the atmosphere.

How does the IPCC define net-zero emissions?

The Intergovernmental Panel on Climate Change (IPCC) defines net-zero emissions as being when 'anthropogenic emissions of greenhouse gases to the atmosphere are balanced by anthropogenic removals over a specified period.' However, this definition applies at a global level, and there is a lack of consistency about what it means at an individual organisation level.

What carbon budget does the IPCC AR6 Report indicate for a 50% chance of keeping temperatures below 1.5°C?

According to the IPCC AR6 Report, there is a total carbon budget of 500 Gtonnes of CO2 to give the world a 50% chance of keeping temperatures below 1.5°C, meaning urgent action is needed now and net-zero carbon emissions must be reached no later than 2050.

What quote did Johan Rockstrom give about the Net-Zero Standard?

Johan Rockstrom, Director of the Potsdam Institute for Climate Impact Research (PIK) and Professor in Earth System Science at the University of Potsdam, said: 'The Net-Zero Standard gives companies a clear blueprint on how to bring their net-zero plans in line with the science, which is non-negotiable in this decisive decade for climate action. Because we are running out of time.'

Why is it important for global emissions to halve by 2030 according to the article?

The article states that in order to have a 50% chance of not exceeding 1.5°C of global warming, global emissions need to halve by 2030 and reach net zero by 2050. A critical piece of science-based target setting is halving emissions by 2030.

What inconsistencies exist among businesses' net-zero targets, according to the article?

The article notes that net-zero emissions targets adopted by businesses don't align on the timeframe for reaching net-zero, the inclusion of greenhouse gases other than CO2e, and the extent of the emissions boundary.

What support does Northmore Gordon offer companies pursuing net-zero targets?

Northmore Gordon states it will help companies get started on the right foot with the strategic process behind emissions reduction (both planning and implementation) and can provide ongoing support to help companies reach their target goals on their Net-Zero journey.

Who authored the article about the SBTi Net-Zero Standard and when was it published?

The article was authored by Northmore Gordon and published on November 4, 2021, under the News category.

Images on This Page