SBTi Consultation Response

By Ffion Spencer

As part of our ongoing commitment to climate action, we contributed to the Science Based Targets initiative (SBTi) consultation on Version 2 of the Corporate Net-Zero Standard. Ffion Spencer explains more in this piece. 

The SBTi1 is a globally recognised framework for setting and validating corporate climate targets in line with the latest climate science. We consider SBTi validation to be the ‘gold standard’, and we actively encourage our portfolio companies to pursue this level of ambition and transparency. 

Climate change is a priority topic for us. We also want to ensure that the standards we encourage our investee companies to follow are both ambitious and practical. By contributing our perspective, we can help shape a framework that sets a high bar for climate ambition while remaining accessible to companies of all sizes.

“By contributing our perspective, we can help shape a framework that sets a high bar for climate ambition while remaining accessible to companies of all sizes.”

This is the first major revision of the Corporate Net-Zero standard2. The consultation, which ran from March to June, received input from more than 855 stakeholders across business, academia, civil society, and other stakeholder groups.

A major proposed change in Version 2 is the introduction of a new categorisation model, with tailored requirements for companies based on size and geography. This addresses a barrier we commonly hear of from smaller companies, who often find the SBTi process resource intensive. By introducing differentiated requirements, the SBTi aims to make target-setting more accessible and proportionate, encouraging broader participation across company types. For us, this change is particularly welcome, as it means we can more confidently encourage our smaller investee companies to engage with SBTi, knowing that the process will be better tailored to their capacities.

The draft also introduces more ambitious requirements for near- and long-term targets, clarifies the scope (including all material Scope 1, 2, and 3 emissions), and tightens its perspective on the role of offsetting. As climate science evolves and the urgency of action increases, it is vital that companies set targets that reflect the latest science and cover their full value chain. This will drive more meaningful decarbonisation and ensure companies are not simply shifting emissions elsewhere. Tighter timeframes will also prevent companies from deferring action and promote real, near-term progress.

Even though the world is now likely to overshoot the 1.5 degrees Celsius target, the new draft version of the SBTi Corporate Net Zero Standard maintains this as the benchmark for corporate climate action. We were pleased to see this because staying as close to 1.5°C as possible is crucial: the scientific consensus is clear that every fraction of a degree matters when it comes to limiting the most severe impacts of climate change3.

Outcome: As investors, we rely on credible, science-based standards to evaluate companies’ climate commitments. Our involvement in the consultation allows us to push for clear, robust guidance on target-setting, progress tracking, and public claims, helping to prevent greenwashing and maintain trust in the market.

Written by Ffion Spencer

 

References:

1.Ambitious corporate climate action - Science Based Targets Initiative

2.Developing the Corporate Net-Zero Standard - Science Based Targets Initiative

3.1.5°C: what it means and why it matters | United Nations

Information is accurate as at 08.08.2025. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.