The Science Based Targets initiative (SBTi), one of the key organizations focused on aligning corporate environmental sustainability action, has made change to its criteria and will no longer accept pledges or validate targets from fossil fuel companies.
This policy is effective immediately and previous pledges made by fossil fuel firms via the SBTi's dashboard will be withdrawn by March 10.
The SBTi's website lists all of the companies that will be affected, including companies 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.
These companies’ subsidiary firms and some other types of corporations in the supply chain are subject to the change. Businesses that generate more than 50% of their revenue from the sale, transportation, or distribution of fossil fuels, or from providing equipment or services to fossil fuel companies, may also be affected by the moratorium, so would their consultants and advisers.
According to the SBTi, it is working on a new framework for enterprises in the oil and gas sector to set science-based targets, and a peer review is being planned. Further information is expected to be provided later this year.
The new policy comes after SBTi released its action plan for 2022 in January, which included intentions to broaden its sector-specific standards to encompass more difficult-to-decarbonize industries. The organization has put out a request for proposals for a consultant to help a panel of independent external experts complete a review of oil and gas processes and advice.