SBTi Opens Consultation on New Standard to Accelerate Automotive Industry's Net-Zero Transition

The proposed Standard represents a comprehensive framework specifically designed for the automotive sector—which is responsible for over 20% of global man-made greenhouse gas emissions and vulnerable to climate related risks spanning supply chain disruption to increased investor scrutiny. The Standard is aligned with the draft Corporate Net-Zero Standard Version 2, which defines broader  cross-sector requirements. The SBTi will ensure consistency between both evolving Standards, giving companies a clear structure that accelerates their path to credible net-zero action.

Grounded in the latest science, the Standard will enable automakers and automotive parts manufacturers 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 in March 2024.

The consultation invites stakeholders to shape a final Standard that is practical and workable but also 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 consultation runs from June 12 to August 11, 2025. The SBTi invites all stakeholders—including companies, policymakers, investors, academics, and civil society—to take part in the consultation.

Karl Downey, Head of Sector Standards at the Science-Based Targets initiative, said:

“Decarbonizing 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.”

More information is available on the SBTi’s Automotive and Land Transport webpage, including an explanatory Automotive Standard video.