The Science Based Targets initiative (SBTi) has launched a public consultation for its new Automotive Sector Net-Zero Standard, aiming to set science-based climate targets for one of the highest-emitting industries. Open until August 11, 2025, the consultation invites feedback from companies, investors, and policymakers to refine the proposed framework for ESG and carbon neutral strategy alignment.

The automotive industry contributes over 20% of global man-made emissions, making decarbonization in this sector critical. The new standard builds on SBTi’s Corporate Net-Zero Standard Version 2, but includes industry-specific guidance tailored for automakers and suppliers.

Key Features of the Draft Standard:

• Applies to automakers producing 10,000+ vehicles annually and parts manufacturers with 20%+ automotive revenue.

• Covers Scopes 1, 2, and 3 emissions, using an aggregated indicator for better reporting.

• Replaces the previous Zero Emission Vehicle (ZEV) declaration with specific targets for low-emission vehicle sales.

• Introduces regionally adapted pathways to reflect diverse economic and regulatory contexts.

• Offers well-to-wheel guidance with default data inputs to track total lifecycle emissions.

• Sets stricter criteria for suppliers, encouraging upstream decarbonization in materials and manufacturing.

According to Karl Downey, Head of Sector Standards at SBTi, “This standard helps automakers and suppliers lead in electrification, efficiency, and competitiveness—all core to credible ESG performance.”

By focusing on practical and science-aligned criteria, the draft standard empowers automotive companies to accelerate their carbon neutral strategies while aligning with global net-zero goals. The final standard will support meaningful emissions reductions and long-term resilience in a sector under growing regulatory and investor scrutiny.

Sources:

https://esgnews.com/sbti-opens-stakeholder-consultation-on-new-net-zero-standard-for-automotive-sector/  

https://sciencebasedtargets.org/news/sbti-opens-consultation-on-new-standard-to-accelerate-automotive-industrys-net-zero-transition 

https://files.sciencebasedtargets.org/production/files/SBTi-Automotive-Net-Zero-Standard.pdf?dm=1749719769