A draft net zero standard which aims to guide automakers and auto parts manufacturers has been launched by the Science Based Targets initiative (SBTi).

The release of the SBTi Automotive Sector Net-Zero Standard draft should help automakers and auto parts manufacturers develop science-based net zero target setting for their businesses(1).

Grounded in the latest science, the standard should enable companies in the sector to contribute to the net zero transition through robust target setting. It includes updated sector-specific criteria for emissions reductions across all operational areas and supply chains (scopes 1, 2, and 3), building on  the SBTi’s Land Transport Guidance published

The SBTi consultation on the draft (running until August 11th) invites stakeholders to shape a final, practical and workable standard that is ambitious and rigorous. The consultation welcomes all feedback on the draft, with particular interest in six key areas:

• Alignment with the draft Corporate Net-Zero Standard V2, including clarity on how to apply the criteria from each standard.

• A new aggregated indicator which combines the relevant emissions in scope 1, 2 and 3 for automakers manufacturing new vehicles.

• New criteria requiring companies to increase their ‘low-emission vehicle sales share’, replacing the requirement to commit to the Zero Emissions Vehicles Declaration.

• Regional emissions pathways designed to reflect economic and market differences.

• New criteria for auto part manufacturers to focus efforts on reducing emissions from material sourcing and manufacturing.

• Additional guidance on emissions calculation, including a more detailed well-to-wheel methodology with default data inputs.

The standard would apply to automakers producing more than 10,000 vehicles annually and parts manufacturers earning at least 20% of revenue from automotive components. Companies below these thresholds could choose to use either this standard or the broader Corporate Net-Zero Standard V2 to set net-zero targets and demonstrate credible climate leadership.

The SBTi is one of the main organisations focused on aligning corporate environmental sustainability action with the global goals of limiting climate change.

It was founded in 2015 to establish science-based environmental target-setting as a standard corporate practice. Functions include defining and promoting best practice in emissions reductions and net zero targets in line with climate science while providing technical assistance to companies who set science-based targets. Companies can also benefit from independent assessment and validation of emissions reduction targets(2).

Heavy emitting industries

The new standard is one of a series released and in development by the SBTi. These cover heavy emitting industries such as Forest, Land and Agriculture (FLAG), air transport, building, chemicals, and cement, among others.

The SBTi is also focusing on further development of its cross-sector Corporate Net-Zero Standard Version 2 (V2), including sector-specific criteria for emissions reductions across the automotive value chain, including operations, supply chains and products.

It has launched a consultation on the new standard, seeking feedback on issues including alignment with the draft V2, the new aggregated indicator for Scope 1, 2, and 3 emissions, the new low-emission vehicle criteria, and criteria for auto parts makers, among other factors(3). 

Among the requirements included in the standard for automakers setting net zero targets is the consideration of aggregated greenhouse gas (GHG) emission intensity for vehicles, including contributions from vehicle fuel use and end-of-life processing. The standard defines requirements for companies to increase share of low-emission vehicle sales as part of target setting and net zero pathways.

The standard also introduces criteria for auto part suppliers, focused on reducing emissions from material sourcing and manufacturing, while requiring disclosure on share of parts sold for low-emission vehicles.

Climate-related risks

The SBTi advises that the automotive sector is responsible for more than 20% of man-made greenhouse gas emissions, while it remains vulnerable to climate-related risks - from supply chain disruptions to enhanced investor scrutiny.

Karl Downey, Head of Sector Standards at the SBTi advises: “Decarbonising the road transport sector is a crucial component of meeting our global net zero goals, and the automotive sector has a substantial role to play as providers of new vehicles.

“The transition to net zero provides an abundance of opportunity for industry innovation and attractive offers for customers. The feedback we receive from stakeholders will ensure that the final Automotive Sector Net-Zero Standard enables automakers and auto parts manufacturers to make ambitious and practical greenhouse gas reductions and helps them seize the opportunities of electrification – building resilience and greater efficiency while maintaining competitiveness in a rapidly transforming market.” 

Bibliography

1 ‘SBTi Opens Consultation on New Standard to Accelerate Automotive Industry's Net-Zero Transition’ (Accessed July 2025) https://sciencebasedtargets.org/news/sbti-opens-consultation-on-new-standard-to-accelerate-automotive-industrys-net-zero-transition

2 ‘About the SBTi’ (Accessed July 2025) https://sciencebasedtargets.org/

3 ‘Automotive and Land Transport’ (Accessed July 2025) https://sciencebasedtargets.org/sectors/automotive-and-land-transport