Automotive Manufacturing Shifts Gears to Meet SBTi Targets
The Science-Based Targets initiative (SBTi) continues to guide industries. Most recently it has introduced its draft Automotive Sector Net-Zero Standard.
As the automotive sector tackles environmental impacts, this standard provides a framework that aligns the sector’s decarbonisation efforts with robust climate science.
This initiative focuses on supporting both automakers and auto parts manufacturers, enabling them to set science-based net-zero targets that are not only ambitious but also tailored to the sector's specific challenges.
The role of SBTi in manufacturing
Established in 2015, the SBTi leads global corporate climate action. It has established itself as a key entity in defining and promoting best practices for emissions reduction targets, providing crucial technical support, and validating the alignment of companies’ climate goals with the latest scientific findings.
The SBTi’s mission addresses global temperature control, aiming to limit temperature rise to 1.5°C above pre-industrial levels and achieve net zero emissions by 2050.
Carillo Pineda, Co-Founder and Chief Technical Officer of SBTi, affirms: “When we launched our first Corporate Net-Zero Standard in 2021, there was no consistent definition of net zero in corporate climate target-setting.”
He notes progress, stating: “Today more than 1,500 businesses have net zero aligned targets.”
Specification for the automotive sector
The draft standard specifically crafted for the automotive sector extends the overarching Corporate Net-Zero Standard Version 2 (V2), which is currently evolving.
While it maintains alignment with the broader framework, it introduces sector-specific criteria, emphasising emissions from Scope 1 (direct), Scope 2 (energy use) and Scope 3 (value chain) activities. These criteria require automakers to disclose aggregated GHG emission intensity for vehicles, factoring in fuel usage and end-of-life processing.
Tracy Wyman, Chief Impact Officer at SBTi, illustrates the complexities: “Reaching net zero is never going to be straightforward.”
However, she stresses the accessibility of guidance: “The additional consultations announced today will support the development of a revised Corporate Net-Zero Standard that works for businesses and accelerates climate action.”
Auto parts suppliers are also addressed, with new criteria mandating emissions disclosure from material sourcing and manufacturing, aligning with the shift towards low-emission vehicles.
It's highlighted that the automotive sector contributes over 20% of man-made GHG emissions, reflecting the industry's need for action in response to climate-related risks.
Karl Downey, Head of Sector Standards at SBTi, clarifies: “Decarbonising the road transport sector is a crucial component of meeting our global net zero goals.”
Stakeholder engagements and feedback
The SBTi has opened its draft standard to public consultation, inviting feedback on key areas integral to the industry's progression.
These include alignment with the Corporate Net-Zero Standard V2 and criteria for low-emission vehicle sales and auto parts manufacturing.
Karl Downey emphasises: “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.”
The value of setting SBTi targets
For companies in manufacturing, adhering to SBTi net zero targets enhances credibility, mitigates risks, and offers a competitive advantage.
This framework requires businesses to set both near-term (5–10 years) and long-term targets, driving a trajectory towards net zero by 2050.
This comprehensive approach, covering all major emission sources, provides a clear climate strategy crucial for companies, particularly in high-emission sectors like automotive.
By offering tailored guidance, the SBTi supports effective steps towards decarbonisation while maintaining market competitiveness and operational integrity.
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