As corporations have churned out net-zero CO2 pledges, investors have so far had little hope of holding them to account. That’s about to change.
The Science Based Targets initiative, a widely respected framework for certifying corporate climate policies, is introducing a Net Zero Standard to provide an “independent assessment of corporate net-zero target setting.” That means there’s now a tool that can reveal whether the growing list of companies — 600 and counting — that are promising net-zero emissions by mid-century actually have credible plans to reach that goal.
The standard is intended to make sure companies can run their businesses in a way that’s compatible with limiting global warming to 1.5°C. An initial cohort of seven firms -- including CVS Health Corp., cement maker Holcim Ltd. and Orsted A/S, the world’s biggest developer of offshore wind farms -- has had its net-zero targets verified by the SBTi, according to a statement on Thursday.
