A Brief Summary

SBTi, an organisation that defines and supports best practices in science-based greenhouse gas emission reduction target setting, has changed its stance and will no longer accept promises or validate targets from fossil fuel firms.

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The SBTi no longer accepts net-zero promises or validates emissions targets from companies engaged in oil, gas, and coal exploration and production, as well as those in the supply chain - possibly including their consultants.

This regulation takes effect immediately, and the removal of previous commitments made by these enterprises through the SBTi's dashboard will be completed by March 10, 2022.

The SBTi website provides a detailed breakdown of the firms affected, but it includes those with "any level of direct involvement" in the exploration, extraction, mining, and/or production of oil, natural gas, coal, or other fossil fuels, regardless of the percentage of revenues generated by these activities, as well as their subsidiary companies and some other types of firms in the supply chain as specified.

Businesses that generate more than half of their revenue from the sale, transportation, and distribution of fossil fuels, or from providing equipment or services to fossil fuel companies, will be affected by the moratorium.

The SBTi said it is developing "a new methodology for companies in the oil and gas sector to set science-based targets" and to this end, it is planning a peer review. It will share further guidance on this later in the year.