SBTi Drafts Net-Zero Standard For Auto Sector

The Science Based Targets initiative (SBTi) has launched a public consultation on its draft Automotive Sector Net-Zero Standard, aiming to galvanize ambitious and science-backed climate action across one of the world’s highest-emitting industries. The draft standard, released in June 2025, is open for public feedback until August 11, 2025, and is tailored specifically for automakers and automotive parts manufacturers, which together are responsible for over 20% of global man-made greenhouse gas emissions.

This sector-specific framework builds on the SBTi’s Corporate Net-Zero Standard Version 2, but goes further by offering detailed, practical guidance for a decarbonization roadmap tailored to the automotive sector. By targeting automakers that produce over 10,000 vehicles annually and auto parts manufacturers that earn at least 20% of their revenue from automotive components, the standard is designed to cover the most significant contributors within the industry. However, smaller firms are not excluded — they are given the flexibility to adopt either the new sector-specific framework or the broader cross-sectoral standard, depending on their needs and strategic direction.

The draft standard reflects SBTi’s commitment to climate science and real-world application. It introduces new emissions criteria across scopes 1, 2, and 3, covering everything from direct emissions to those embedded in supply chains and vehicle usage. Among the most notable updates is the replacement of the previously broad Zero Emission Vehicle (ZEV) Declaration with concrete, measurable targets for low-emission vehicle sales. This shift signals SBTi’s move toward a more rigorous and enforceable strategy for tracking and driving down vehicle-related emissions.

Furthermore, the standard introduces an aggregated emissions indicator that spans all three emissions scopes. This aims to provide automakers with a comprehensive metric for tracking their overall climate impact. The framework also incorporates regional differentiation, acknowledging the diverse economic and technological contexts that shape vehicle manufacturing and sales across different geographies. These regionally tailored emissions pathways are intended to ensure both fairness and feasibility, particularly in emerging markets where infrastructure and policy support for low-emission vehicles may still be developing.

Another critical component of the draft is its inclusion of detailed guidance on “well-to-wheel” emissions — the total lifecycle emissions of vehicles from fuel extraction to consumption. By standardizing default data inputs and emission calculation methodologies, SBTi hopes to reduce inconsistencies in how companies report and reduce emissions. This clarity will be especially valuable for stakeholders like investors and regulators who rely on standardized metrics to evaluate company performance.

Auto parts suppliers, too, are under the spotlight. The new framework includes stricter criteria for these manufacturers, particularly concerning upstream emissions embedded in raw materials and component manufacturing processes. These changes aim to push decarbonization efforts deeper into the automotive supply chain, ensuring that climate action is not limited to vehicle assembly but also extends to the earliest stages of production.

Karl Downey, Head of Sector Standards at SBTi, emphasized the strategic importance of the automotive sector in achieving global climate goals. “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,” Downey stated. He highlighted that the transition to low-emission vehicles not only helps reduce greenhouse gases but also presents opportunities for automakers to build greater resilience, improve efficiency, and maintain competitiveness in a rapidly evolving global market.

Downey also underscored the importance of stakeholder engagement during this consultation phase. The SBTi is actively seeking input from companies, investors, civil society organizations, policymakers, and academic experts to ensure that the final standard is both ambitious and practical. “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,” he said.

The draft Automotive Sector Net-Zero Standard is part of a broader push by the SBTi to provide clearer, more sector-specific guidance to companies aiming to set science-based targets aligned with the 1.5°C pathway. With the automotive sector at a critical juncture — facing increasing regulatory pressure, changing consumer preferences, and technological disruption — the need for a robust, science-based framework is more pressing than ever.

As the public consultation progresses through the summer of 2025, the outcome will play a crucial role in shaping how the automotive industry transitions to a net-zero future. The finalized standard, once adopted, could become a benchmark for climate action in transport — helping manufacturers align with global goals while staying ahead in a competitive, low-carbon economy.