Why is the SBTi making Automotive Net Zero Standards?

According to McKinsey analysis, the automotive sector produces approximately 80 million vehicles, contributing to more than 10% of the world’s carbon dioxide emissions annually.

The World Economic Forum says that the sector is redefining its priorities focusing on electric vehicle adoption and decarbonisation. 

The Science Based Targets initiative (SBTi) was launched in 2018 to help companies set greenhouse gas (GHG) emissions reduction in alignment with the Paris Agreement goals.

The company provides clear, science based criteria and a validated framework for businesses to reduce emissions to limit global warming. 

It has announced that it will be revising its net zero standards, alongside revising its criteria for the automotive sector.

What is the automotive sector net zero standard?

The standard aims to provide automakers and auto parts manufacturers with a science based framework to set targets achieving net zero GHG emissions by 2050.

The SBTi's draft includes:

• Releasing a new aggregated indicator combining Scope 1, 2 and 3 emissions from the perspective of new vehicle manufacturers
• New criteria requires companies to increase shares of low emission vehicle sales
• The introduction of regional emissions pathways designed to reflect economic and market differences
• More guidance on emissions calculations including data inputs such as default vehicle lifetime mileage, required to calculate use-phase emissions
• New criteria for auto part manufacturers to focus efforts on reducing emission from material sourcing and manufacturing.

The draft will replace the relevant sections in the SBTi’s Land Transport Guidance, aligning with the SBTi Corporate Net Zero Standard, it aims to incorporate the best practices for decarbonising the automotive sector.

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

“But the guidance to get businesses there should be.”

What is the test draft?

The SBTi invited businesses to participate in the pilot testing of the draft. 

The new standard is designed for automakers and auto part manufacturers to set GHG reduction targets in order to achieve net zero by 2050. 

The SBTi says that the pilot test is a critical step in the standards development, providing data to ensure that the final release is practical, effective and scientifically robust. 

Those that participate will be given access to the SBTi’s latest methodologies and tools, using real world data to identify implementation challenges and validate methodological assumptions. 

Companies involved will fill out a pilot testing feedback report alongside a basis of conclusion report. 

Karl Downey, Head of Sector Standards at the SBTi, says: “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.

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

How will the SBTi help automotive companies reach sustainability goals?

Several companies within the automotive sector have already set targets to reduce emissions under the approval of the SBTi.

The companies involved have committed to various targets: 

• Volkswagen commits to reduce absolute Scope 1 and 2 GHG emissions 50.4% by 2030 from a 2018 base year. This is alongside reducing Scope 3 GHG emissions from use of sold products of light duty vehicles by 30% per vehicle km by 2030
  
  
• Ford Motor Company committed to reduce its absolute Scope 1 and Scope 2 GHG emissions by 76% by 2035 from a 2017 base year. It has also committed to reduce Scope 3 use of sold products GHG emissions by 50% per vehicle km by 2035
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• Mercedes-Benz AG committed to reduce absolute Scope 1 and 2 GHG emissions by 50% by 2030 from a 2018 base year. It has also committed to reduce its Scope 3 GHG emissions from use of sold products by 42% per vehicle km by 2030.

• Toyota committed to reduce absolute Scope 1 and 2 GHG emissions 68% by 2035 from a 2019 base year. It will also reduce Scope 3 use of sold products GHG emissions from passenger light duty vehicles and light commercial vehicles by 33.3% per vehicle km by 2030. This is alongside a commitment to reduce Scope 3 use of sold products GHG emissions from medium and heavy freight trucks by 11.6% per vehicle km by 2030
  
  
• BMW Group has committed to reduce Scope 1 and 2 GHG emissions 80% per vehicle produced by 2030 from a 2019 base year.  The company also commits to reduce scope 3 GHG emissions from use of sold products 50% per vehicle kilometer by 2030. This is alongside commitments to reduce scope 3 GHG emissions from purchased goods & services and upstream transportation & distribution services 22% per vehicle sold by 2030.
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• Volvo Group aims to reduce absolute Scope 1 and 2 GHG emissions 60% by 2030 from a 2019 base year. It also committed to reduce Scope 3 GHG emissions from use of sold products 52% per vehicle km by 2030.

Martin Lundstedt, CEO at Volvo Group, says: “We focus on our long-term vision of solutions that are 100% safe, 100% fossil free and 100% more productive. 

“We have climate targets that are in line with what climate-science deems necessary to keep global warming at a maximum of 1.5 degrees Celsius.”