Corporate Net-Zero Rules Take Priority as SBTi Delays Energy Sector Standard

The Science Based Targets initiative (SBTi) has temporarily halted its efforts to create tailored environmental guidance for oil and gas companies. The organisation is redirecting its attention to a broader update of its Corporate Net-Zero Standard (CNZS 2.0), with a targeted release set for early 2026.

A meeting on climate goals taking place in an office, seen from afar through trees. AI generated picture.

The decision marks a strategic shift for the group, which plays a central role in validating corporate green targets. ‘Our key priority is to continue development of our flagship Corporate Net-Zero Standard V2 [CNZS 2.0] so companies worldwide can start using it from next year’, a spokesperson said.

Work on CNZS 2.0 began earlier this year, aiming to refine the original 2021 version. The revision is being closely followed by companies and investors alike, particularly due to uncertainty around whether SBTi will ease current restrictions on the use of carbon credits for meeting voluntary targets.

Although the SBTi maintains that the delay in the oil and gas standard is unrelated to CNZS 2.0, industry tensions have surfaced. The Financial Times reported that Shell, Aker BP, and Enbridge withdrew from the expert advisory group (EAG) involved in shaping the oil and gas framework. Shell confirmed its exit in October 2023, saying the draft failed to reflect industry realities. ‘We believe any proposed standard should reflect realistic societal and economic changes while providing companies with sufficient flexibility to transform into a net-zero business by 2050’, a Shell spokesperson noted.

The SBTi responded by clarifying that advisory roles are held in a personal capacity and that corporate positions don’t influence individual contributions. Development of the oil and gas standard is expected to resume, although no timeline has been set.

In parallel, SBTi has released a new net-zero standard for financial institutions. The 82-page document urges banks and investors to stop funding new unabated fossil fuel projects and coal expansion, with a firm deadline of 2030. ‘Ideally, this should happen immediately; the absolute cut-off is 2030’, the spokesperson added.

A second consultation on CNZS 2.0 is planned for later this year, inviting further stakeholder input as the SBTi moves to reshape corporate nature-centred action worldwide.