SBTi revises net-zero standard for corporate electricity decarbonization with more flexible rules

The Science Based Targets initiative updated its corporate net-zero standard to require companies to set separate targets for Scope 2 electricity emissions instead of bundling them with Scope 1. The revision allows annual matching of electricity consumption with low-carbon sources through PPAs and RECs, a more flexible approach than the hourly matching model proposed by the GHG Protocol. Companies buying over 10 GW annually must report hourly matching data, but others can use annual methods for now. Environmental groups including NRDC and Sierra Club criticized the update for not mandating hourly matching, arguing annual matching allows non-impactful investments. Corporate buyers and consultants like Schneider Electric welcomed the clarity, saying it removes uncertainty that was delaying renewable energy procurement. The standard also requires low-carbon energy projects to be in the same region where the electricity is consumed, tightening geographic rules.