How Radical are SBTi’s Net Zero Automotive Sector Standards?

As the automotive industry faces intensifying pressure to reduce its environmental impact, the Science Based Targets initiative (SBTi) has launched its draft Automotive Sector Net-Zero Standard.

The new standard is a framework designed to align the sector’s decarbonisation efforts with climate science. 

This new framework aims to support both automakers and auto parts manufacturers in setting science-based net zero targets that are practical, ambitious and sector specific.

The role of SBTi in climate action

Founded in 2015, the SBTi has become a leading global body guiding corporate action on climate change. 

It defines and promotes best practices for emissions reduction targets, providing technical support and independently validating companies’ climate goals to ensure they are consistent with the latest science.

The initiative’s overarching mission is to help limit global temperature rise to 1.5°C above pre-industrial levels and reach net zero emissions by 2050. 

Its Corporate Net-Zero Standard, the world’s first science-based net zero framework, provides consistent guidance for businesses to translate climate pledges into measurable action.

“When we launched our first Corporate Net-Zero Standard in 2021, there was no consistent definition of net zero in corporate climate target-setting,” says Alberto Carillo Pineda, Co-Founder and Chief Technical Officer, SBTi.

“We have come a long way since then, today more than 1,500 businesses have net zero aligned targets. 

“The feedback we have gathered since the release of the first version of the standard has been invaluable in helping us identify opportunities to strengthen it and make it more practical and effective in driving science-based climate action.”

The automotive sector standard

The newly released draft standard for the automotive sector builds on the foundation of the cross-sector, Corporate Net-Zero Standard Version 2 (V2), currently under development.

While aligned with this broader framework, the automotive standard introduces sector-specific criteria covering Scope 1 (direct), 2 (energy use) and 3 (value chain) emissions.

For automakers, the standard requires the inclusion of aggregated GHG emission intensity for vehicles, accounting for fuel usage and end-of-life processing. 

Companies are also expected to demonstrate increased sales of low-emission vehicles as a pathway to net zero.

“Reaching net zero is never going to be straightforward,” explains Tracy Wyman, Chief Impact Officer, SBTi.

“But the guidance to get businesses there should be. 

“The additional consultations announced today will support the development of a revised Corporate Net-Zero Standard that works for businesses and accelerates climate action.

“We encourage all interested stakeholders to engage with the revision process through these feedback mechanisms and welcome their input to shape the revised Corporate Net-Zero Standard.”

Auto parts suppliers, meanwhile, face new criteria focused on emissions from material sourcing and manufacturing. 

Additionally, they must disclose the share of parts sold for low-emission vehicles, emphasising the entire industry’s shift towards electrification and decarbonisation.

Highlighting the urgency, SBTi stated that the automotive sector is responsible for more than 20% of man-made GHG emissions, making it one of the largest contributors to climate change. 

It is also highly susceptible to climate-related risks such as supply chain disruptions and investor scrutiny.

“Decarbonising the road transport sector is a crucial component of meeting our global net zero goals and the automotive sector has a substantial role to play as providers of new vehicles,” explains Karl Downey, Head of Sector Standards at the SBTi.

“The transition to net zero provides an abundance of opportunity for industry innovation and attractive offers for customers.”

Consultation and stakeholder input

The SBTi has opened a public consultation on the draft standard, inviting stakeholders to provide feedback on several key areas. 

These include:

• The alignment with the Corporate Net-Zero Standard V2
  
  
• The new aggregated indicator for Scopes 1, 2 and 3
  
  
• The low-emission vehicle sales criteria
  
  
• Requirements for auto parts manufacturers.

“The feedback we receive from stakeholders will ensure that the final Automotive Sector Net-Zero Standard enables automakers and auto parts manufacturers to make ambitious and practical greenhouse gas reductions and helps them seize the opportunities of electrification – building resilience and greater efficiency while maintaining competitiveness in a rapidly transforming market,” says Karl.

Why do SBTi’s matter?

Setting SBTi net zero targets helps companies strengthen credibility, reduce risks and gain a competitive edge. 

The SBTi’s framework mandates that businesses set both near-term (5–10 years) and long-term targets, with a firm trajectory to reach net zero emissions by 2050 or earlier, depending on the sector.

Crucially, the standard covers all major sources of emissions, ensuring a comprehensive climate strategy. 

By offering sector-specific guidance, such as this automotive draft, the SBTi ensures that companies in high-emitting industries can take tailored, effective steps towards decarbonisation.

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