SBTi looks to clarify scope 2 guidance

The Science Based Targets initiative is revising its scope 2 guidance within the Corporate Net Zero Standard. The move follows parallel updates to the Greenhouse Gas Protocol's scope 2 emissions accounting methodology.

Scope 2 covers indirect emissions from purchased electricity, steam, heating and cooling. It's where most organisations find consistency hardest – market-based versus location-based calculation methods, contractual instruments like renewable energy credits, and attribution across different energy sources create genuine ambiguity.

SBTi's clarifications matter because corporates setting net-zero targets increasingly rely on the standard for validation. Without precise scope 2 rules, two companies in identical circumstances can report the same operations as either compliant or non-compliant depending on how they calculate. That's not rigour; it's a loophole.

The GHG Protocol changes are substantive enough to warrant SBTi revision. If the underlying accounting standard shifts – especially on how organisations should treat purchased renewable energy, grid decarbonisation rates, or attribute emissions across value chains – the net-zero target framework must follow. Otherwise, targets signed today risk becoming obsolete or, worse, misleading.

The real question: will these clarifications tighten or loosen requirements? Scope 2 is where many organisations hide marginal progress by shifting between accounting methods. If SBTi is genuinely tightening the standard, expect pushback from corporates claiming market-based methods already reflect carbon intensity. If it's relaxing criteria, watch for scepticism from credibility-conscious investors.