Corporates could face additional administrative burdens as they seek to implement updated guidance in moving to net zero, according to ACCA (the Association of Chartered Certified Accountants).
Responding to Science Based Targets initiative (SBTi) Corporate Net-Zero Standard V2, ACCA says that it is concerned by the potential workload for businesses of transitioning from version 1 to version 2.
Jessica Bingham, global sustainability lead, strategy, ACCA, said: “Despite the issuance of transition guidance, with 2030 and near-term target deadlines in sight, there is a level of uncertainty around how organisations will navigate these changes. However, overall, we believe the changes to the standard demonstrate a desire to continuously improve and show commitment to environmental sustainability.”
Maggie McGhee, ACCA’s executive director of strategy and governance, said: “We have consistently voiced our stance on making meaningful reductions to emissions rather than offsetting and have taken the most transparent approach possible with our first climate action plan published and by setting year on year emissions targets.
“Therefore, consistent with ACCA’s focus on decarbonisation, we recommend that criteria should continue to emphasise emissions reduction pathways rather than reliance on removals or offset mechanisms as the new limitations on carbon credits and emissions offsetting help to encourage real change.”
ACCA says SBTi has scope to create a more tailored standard for service based companies, though it recognises that by having a consistent framework by adopting 1.5 degrees-aligned targets across all Scopes (previously 2 degrees for Scope 3), this improves comparability within sectors.
ACCA strongly supports science-based approaches to net zero target setting. Its net zero targets have been independently verified by the SBTi, underlining its commitment to credible climate action grounded in the latest climate science.
Lloyd Powell, head of ACCA Cymru/Wales, said: “We recognise the complexity inherent in aligning global best practice with the diverse operational contexts of companies worldwide. We continue to encourage interoperability with global reporting standards to ensure a global baseline and improve consistency and comparability of climate-related disclosures.”
