Background: Companies will continue to emit GHGs on the path to net-zero. By covering a defined share of these ongoing emissions through climate contributions that support verified mitigation and other climate actions beyond their validated target requirements, companies can help limit temperature overshoot, mitigate transition risks, and support climate solutions. To encourage this, the voluntary Ongoing Emissions Responsibility (OER) recognition program will recognize companies for their climate contributions on the SBTi Dashboard.
This chapter sets out criteria that reflect the OER framework’s three phases: the optional recognition program effective under the Corporate Net-Zero Standard V2.0; the post-2035 responsibility requirement; and the net-zero residual emissions requirement. The post-2035 requirement takes effect at a future date, while the net-zero requirement applies once scope 1, scope 2, and scope 3 emissions reach residual levels. Both sets of provisions are included to indicate expectations under the Corporate Net-Zero Standard at the relevant stage.
Under the OER optional recognition program, companies can earn recognition across three levels – Engaged, Advanced, and Leadership – which are distinguished by the volume of emissions covered. The Leadership level represents the full internalization of the cost of climate change, and all companies are encouraged to strive toward the ambition of this level over time.
The OER recognition program will remain optional until 2035, after which Category A companies will be required to support eligible carbon removals. The recognition model will operate in parallel to these post-2035 requirements. By their net-zero target year and thereafter, all companies with net-zero targets are expected to reduce emissions to zero or residual levels and neutralize 100% of residual emissions using eligible carbon removals, either directly or jointly with value chain partners.
The SBTi does not seek to replace existing carbon crediting and climate contribution frameworks. Instead, this chapter establishes minimum criteria for companies to be recognized under the OER framework, which are aligned with existing high-integrity frameworks. The SBTi will develop criteria and processes to recognize relevant third-party frameworks, standards, and programs where applicable.
To encourage participation in the recognition program by making companies’ intent publicly visible, creating a clear signal that differentiates participating and non-participating companies to drive engagement.
To ensure that recognition is granted only to companies that are delivering against their validated targets and that take responsibility for ongoing emissions by providing climate contributions that support verified mitigation or other climate action at a level aligned with their selected recognition tier.
To ensure that activities supported under the OER recognition program deliver credible climate impact and adhere to robust integrity and quality standards, safeguarding environmental and social outcomes.
To ensure that ongoing emissions responsibility is transparently accounted for and reported separately from inventory and target progress, enabling assessment of conformance with standard requirements.
To signal future expectations for mandatory ongoing emissions responsibility from 2035 onwards, enabling companies to prepare and build capacity over time.
To ensure that a state of net-zero is achieved and maintained through the neutralization of all residual emissions using eligible and integrity-aligned carbon removals.
