Net-Zero push is still on at many companies, standard setter says

illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: David Kennedy, the new CEO of the Science Based Targets initiative (SBTi), emphasized the continued commitment of many businesses to reach net-zero emissions despite recent political and investor pushback
• According to Kennedy, submissions to the SBTi for transition target validations have increased by 30% this year
• He highlighted the importance of a pragmatic, non-confrontational approach to corporate climate action, focusing on both climate targets and the business realities companies face

🔭 The context: Kennedy's appointment comes at a challenging time for corporate climate action, with growing skepticism and opposition to sustainability efforts from certain political and financial sectors
• Despite this, the SBTi remains a crucial entity in setting global standards for corporate emissions reduction
• Kennedy stressed the need to support hard-to-abate sectors like oil, gas, and heavy industry, where emission reductions are more complex and costly

🌍 Why it matters for the planet: SBTi's approach of working pragmatically with businesses, including financial institutions, is critical in scaling up global emissions reductions
• By ensuring companies in difficult sectors can still progress toward net-zero goals, SBTi aims to maintain momentum across industries and regions, fostering broader climate action
• This continued push is key to addressing global climate change, as businesses make crucial transitions in sectors responsible for a significant portion of emissions

⏭️ What's next: The SBTi is preparing to launch a new net-zero standard for financial institutions, as well as a broader net-zero framework by early 2026
• These updates aim to align financial sectors and hard-to-abate industries with science-based targets, ensuring greater accountability and participation in climate action
• Kennedy's goal is to have 20,000 companies with validated targets by 2030, extending the reach of SBTi’s influence

💬 One quote: “This is not about business doing the right thing, it is about business managing its transition risk, and SBTi being part of that,”  David Kennedy, CEO of SBTi

📈 One stat: Submissions for target validation to the SBTi have increased by 30% year-to-date, following a record number of submissions in 2024

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