Automotive Industry Encounters New Zero Emission Guidelines via SBTi's Proposed Standard
Science Based Targets Initiative Unveils Automotive Sector Net-Zero Standard
The Science Based Targets Initiative (SBTi) has announced the release of its initial draft Automotive Sector Net-Zero Standard, a comprehensive guide aimed at helping automakers and auto parts manufacturers set science-based net zero targets for their businesses.
The standard, which aligns with the SBTi's updated cross-sector Corporate Net-Zero Standard Version 2 (V2), is a significant step towards decarbonizing the road transport sector, as the automotive industry is responsible for more than 20% of man-made greenhouse gas emissions and is vulnerable to climate-related risks.
Karl Downey, Head of Sector Standards at the SBTi, highlighted the importance of the initiative, stating, "Decarbonizing the road transport sector is crucial for meeting global net-zero goals, and the transition to net-zero offers opportunities for industry innovation and attractive offers for customers."
The key requirements of the new standard include:
- Achieving net-zero emissions by 2050 at the latest, with a strong focus on near-term action such as targets for 2030 and 2035. Given that vehicles sold will remain in use for 20 years or more, the focus on near-term action is essential to heavily influence future emissions.
- More than 99% of new passenger car sales must be zero-emission vehicles by 2030 in advanced economies and China to meet net-zero goals by 2050. This reflects the substantial use-phase emissions in the automotive sector.
- Setting science-based targets aligned with limiting global warming to 1.5°C, which includes publicly committing to net-zero by 2050 and setting detailed targets for reducing greenhouse gases across the entire value chain.
- Separate targets for Scope 1 and Scope 2 emissions, with a focus on achieving 100% zero-carbon electricity use by 2040.
- Scope 3 emissions targets are generally required, but smaller manufacturers (Category B companies) have some flexibility, as Scope 3 (value chain emissions) is optional for them.
- Public commitment and transparency, requiring companies to publicly pledge their net-zero goals and set verified science-based targets within a defined timeframe.
- Tracking progress & accountability, including guidance on implementation and emissions data assurance, ensuring companies demonstrate transparent and verifiable progress toward net zero.
For auto part suppliers, the standard introduces new criteria focused on reducing emissions from material sourcing and manufacturing.
Downey also emphasized that the feedback received from stakeholders will help ensure the final standard enables ambitious and practical greenhouse gas reductions. The consultation can be accessed by clicking the provided link.
The final Automotive Sector Net-Zero Standard is expected to help automakers and auto parts manufacturers seize opportunities of electrification while building resilience, greater efficiency, and maintaining competitiveness in a rapidly transforming market.
The SBTi was founded in 2015 to establish science-based environmental target setting as a standard corporate practice. The new automotive-focused standard is part of a series of sector standards released and under development by the SBTi, covering heavy emitting industries.
[1] SBTi. (n.d.). Automotive Sector Net-Zero Standard. Retrieved from https://sciencebasedtargets.org/initiatives/automotive-sector-net-zero-standard [2] SBTi. (n.d.). Corporate Net-Zero Standard Version 2 (V2). Retrieved from https://sciencebasedtargets.org/initiatives/corporate-net-zero-standard-v2
- The Science Based Targets Initiative (SBTi) has introduced the Automotive Sector Net-Zero Standard, which aims to help automakers and auto parts manufacturers achieve net-zero emissions by 2050, with strong focus on near-term action such as 2030 and 2035 targets.
- Aligning with the SBTi's Corporate Net-Zero Standard Version 2 (V2), the automotive-focused standard is a significant move towards environmental sustainability, addressing climate-change concerns and minimizing the industry's significant contributions to greenhouse gas emissions.
- To meet these net-zero goals, the standard requires more than 99% of new passenger car sales to be zero-emission vehicles by 2030 in advanced economies and China, demonstrating the importance of science in setting industry targets.
- The new standard also emphasizes the need for companies to publicly commit to net-zero goals, set verified science-based targets, and track progress, ensuring transparency, accountability, and competitiveness in the energy and transportation sectors.
- For auto part suppliers, the standard introduces new criteria to reduce emissions from material sourcing and manufacturing, underscoring the importance of science, finance, and environmental-science in modernizing the automotive industry.
