- Updated draft centers on scope 3 “use of sold products,” which accounts for roughly 70 to 80 percent of automakers’ emissions
- New framework introduces zero emission vehicle metrics alongside emissions targets to improve flexibility and comparability
- Consultation running from February 3 to March 22, 2026 will shape how global automakers align with net zero governance and investor expectations
SBTi Refines Automotive Framework Ahead Of Corporate Net Zero Standard V2
The Science Based Targets initiative has released a revised draft of its Automotive Sector Net Zero Standard for a second public consultation, opening a new phase in how automakers and parts suppliers structure climate targets tied to net zero by 2050. The proposal reflects months of industry feedback and aims to tighten alignment with the forthcoming Corporate Net Zero Standard Version 2 while addressing the sector’s most complex emissions challenge: the vehicles companies sell.
Road transport remains one of the most difficult sectors to decarbonize at scale, largely because emissions are generated after the point of sale. According to SBTi, use phase emissions account for an average of 70 to 80 percent of an automaker’s total footprint, pushing governance and accountability beyond traditional manufacturing boundaries.
The updated draft is designed to provide clearer rules for how companies measure and reduce those downstream emissions while maintaining scientific rigor and compatibility with existing SBTi methodologies.
Stronger Focus On Scope 3 And Zero Emission Vehicle Metrics
A key feature of the revised framework is a sharper emphasis on scope 3 category 11 emissions, defined as the “use of sold products.” By centering targets on this category, SBTi is pushing automotive companies to address lifecycle impacts rather than relying solely on operational decarbonization.
The draft also redefines low emission vehicles as zero emission vehicles, establishing stricter boundaries that reflect evolving regulatory expectations across major markets. Automakers will have the option to set targets either through emissions reductions or through a ZEV sales share metric, provided both pathways deliver consistent long term decarbonization outcomes.
SBTi has extended convergence timelines used in target calculations to account for regional differences in infrastructure, technology readiness, and policy environments. Global aggregated targets for light duty vehicles have also been introduced to simplify implementation for multinational manufacturers with complex supply chains.
For executives and investors, these adjustments signal a shift toward more practical target setting while preserving credibility in climate disclosures.
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Governance And Capital Allocation Implications
Once finalized, the Automotive Net Zero Standard will replace relevant portions of SBTi’s existing Land Transport Guidance, offering sector specific criteria tailored to automakers and their suppliers. The changes come at a time when regulators and financial institutions are increasingly scrutinizing transition plans, particularly those tied to product portfolios and future vehicle sales.
Companies that adopt the framework will be expected to embed climate considerations into long term capital allocation decisions, including electrification strategies, supply chain investments, and infrastructure partnerships. By clarifying definitions and metrics, SBTi aims to improve comparability between companies, a priority for institutional investors evaluating transition risk.
Karl Downey, Head of Sector Standards at the Science-Based Targets initiative, said:
“The feedback we received from stakeholders during the last public consultation was crucial in developing this new draft with an increased focus on adaptability and usability. Decarbonizing the road transport sector is vital in meeting global net-zero goals, and ensuring the Standard can accommodate the operational contexts of different companies will help the whole sector. Creating a final Standard that enables companies to benefit from the many opportunities the transition provides will help automakers and auto parts makers to transform their ambition into practical, credible climate action.”
Consultation Period Signals Industry Alignment Push
The consultation, open from February 3 to March 22, 2026, invites feedback from automakers, suppliers, policymakers, and investors seeking clarity on how science based targets should evolve alongside rapidly changing vehicle technologies and regulatory frameworks.
For global C suite leaders, the draft highlights the growing expectation that transition strategies must address product level emissions and demonstrate measurable progress toward zero emission mobility. As governments tighten climate policies and markets accelerate electrification, the final Automotive Net Zero Standard could shape not only corporate disclosures but also investment flows across the automotive value chain.
The outcome of the consultation will influence how companies translate net zero commitments into operational plans, reinforcing the role of standardized governance frameworks in steering one of the world’s most emissions intensive industries toward a lower carbon future.
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