Background: Ongoing tracking, evaluation, and public reporting of progress are essential to maintaining credibility. Clear disclosure of emissions, implementation action, and emerging challenges enables stakeholders to assess whether companies remain on track toward their net-zero goals.
The SBTi framework operates as a continuous cycle of target setting, implementation, and ongoing progress reporting. At the end of each target cycle, companies assess and disclose progress against their validated targets.
The approach to assessing and communicating progress against targets is based on transparent accounting and reporting – and on credible claims. Progress is assessed through actions at the activity, activity pool, and/or sector levels, provided these are undertaken in accordance with the implementation hierarchy and meet applicable integrity criteria in the Corporate Net-Zero Standard.
For emissions accounting and reporting purposes, changes in the physical GHG inventory form the basis for SBTi emissions reduction claims. Actions and market instruments not reflected in the physical GHG inventory, including projects at the activity pool and sector levels, are reported separately as additional activities that can contribute to the net-zero transformation of the underlying systems where value chain activities are embedded.
At the end of a company’s target timeframe, it prepares a progress assessment showing how far it has advanced toward its targets. For Category A companies, the progress assessment is assured by an independent third party. The progress assessment forms the basis of the End-of-cycle Assessment, which is conducted by an SBTi-recognized validation body, and checks whether the company meets the relevant Corporate Net-Zero Standard criteria. This provides an independent and consistent basis for comparison across companies and informs future target setting. The SBTi may refine its approach to monitoring progress over time, including by collecting additional data to improve transparency and support implementation.
SBTi targets are pursued on a best-efforts basis, subject to stated assumptions and dependencies. This means that companies are expected to take all relevant actions within their control or influence to implement targets, including managing material dependencies and risks. Companies that demonstrate they have applied available levers within their control or influence, and taken credible action to overcome barriers, may proceed to set new targets and continue progressing toward net-zero.
Minimum progress criteria for companies seeking to set new targets following their first cycle under the Corporate Net-Zero Standard V2.0 will be set out in the SBTi Assurance Manual.
At the end of each cycle, companies establish new targets based on their most recent progress to support continued emissions reductions. Companies are strongly encouraged to submit next-cycle targets before their current target timeframes end to avoid gaps between targets.
To ensure transparent and consistent tracking of progress against validated targets and provide clear visibility into emissions trends and implementation challenges.
To ensure companies transparently assess and communicate progress based on changes in the physical GHG inventory and reporting of implementation actions and associated outcomes, with appropriate assurance where applicable, enabling credible claims.
