The Sillion Briefing 28.03.2025
In this Briefing...
SBTi's 2.0 standards – Planning bill
Badenoch on net zero – SBTNs for ocean
CDP E1 mapping – Amazon enters credits market
Government
SBTi shares CNZS 2.0, launches consultation
The Science Based Targets initiative (SBTi), the leading standards setter and validation body for emissions reductions targets, has published the draft of its hotly anticipated Corporate Net Zero Standard (CNZS) V2.0. A consultation on the draft has now been launched, with a survey open until June 1st. What the SBTi does with the CNZS matters, as it remains the dominant targets standard, and changes to it will affect how companies approach their decarbonisation and communications.
So, what’s new?
Given the long timeline for producing 2.0, we expect changes before the final version, and indeed many parts of the draft have been left intentionally incomplete. Overall, the reaction to the new standard has been positive. It can be judged to have advanced the specificity and robustness of requirements, and provides more options around target setting, but doesn’t reduce the overall strictness of required reductions or undermine its basis in climate science.
Fears that the SBTi would allow companies unlimited carbon offsets to meet their scope 3 targets have not materialised. The new draft floats carbon removal targets that can be set alongside reductions commitments, and allows greater recognition of voluntary carbon removal efforts.
For companies with current SBTi targets, we suggest you consider contributing to the consultation, and otherwise wait to see changes and outcomes, as 2.0 will only affect you when it comes to setting a new target. Companies setting new near-term targets in 2025 and 2026 can use the current CNZS, but from 2027 onwards all companies will be expected to use 2.0, which will by then be final.
We’ve rounded up some of the key changes below. As ever, do be in touch if you’d like a session with Sillion to walk through what CNZS 2.0 might mean for your business.
Scope 1 and 2 emissions targets are now separated, rather than having one target that covered both scopes
For scope 3 emissions, companies must identify their ‘emissions-intensive activities’ within each category, and set a target covering either the absolute emissions, emissions intensity, or ‘alignment’ of this activity. The alignment method has drawn eyes as it allows companies to set targets for downstream emissions based on revenue from “net-zero aligned products” – a category which the SBTi is currently working to define. Companies must also then address the remaining emissions in each significant category with a separate target. The changes to scope 3 are the knottiest part of 2.0, but also bring welcome sophistication (and additional complexity!) to scope 3 targets, which previously had more of a ‘blanket coverage’ approach.
Category A and Category B companies have been introduced, with the intention being to provide reliefs to companies who might otherwise struggle with target setting. Category B companies have greater flexibility on criteria, including not having to set scope 3 targets. The B group is defined as small companies, and medium sized companies in lower-income geographies (based on defined thresholds), with large companies and medium-sized companies in higher-income geographies being Category A.
Transition plans are now required from companies within 12 months of target validation. No specific approach is defined, but 2.0 recommends companies refer to the TPT framework.
Policy and Regulation
‘Get Britain building’: Planning and Infra Bill to shake up UK planning rules
The UK Government’s long-anticipated updates to the Planning and Infrastructure Bill introduce a series of reforms aimed at speeding up the delivery of new homes, clean energy projects, and electric vehicle charging networks. Key measures include reducing the time it takes to make planning decisions on major infrastructure, which the government sees as essential to meeting its ambitious 2030 clean power targets and its commitment to build 1.5 million new homes during this Parliament.
The overall goals of the reforms are to boost job creation, attract investment, and provide greater certainty for developers. While the proposals have been broadly welcomed, some concerns have been raised — particularly around ensuring that local communities continue to have a voice and that biodiversity and wildlife are adequately protected.
Parliament is now inviting input from individuals and organisations with relevant expertise or experience in planning, infrastructure delivery, or environmental issues to help inform the legislative process.
Politics
Kemi Badenoch: Net zero by 2050 ‘impossible’
The new leader of the Conservatives Kemi Badenoch has dropped the Party’s support for the legally-binding net zero target set by her predecessors in government, claiming it would be ‘impossible” to reach. Clarifying that she wasn't making a "moral judgment" about net zero goals or philosophising the existence of climate change, Badenoch emphasised the Conservative party intended to confront the practical implications of the target — an approach she claimed had been overlooked by both Labour and previous Tory administrations. Read Carbon Brief’s fact-checking coverage here.
Disclosures
Science-Based Targets for Ocean Stewardship introduced
The Science Based Targets Network (SBTN) has introduced a new set of ocean-focused targets designed specifically for businesses in the seafood industry. These targets aim to support companies in addressing key issues such as habitat degradation, overfishing, and the loss of marine biodiversity by implementing actions across their value chains. Developed with input from WWF and Conservation International, the framework provides a structured approach for companies to get involved. Interested organisations can access the SBTN methodology by registering through this link.
CDP publish mapping to ESRS E1
CDP, the environmental disclosure platform and database, has teamed up with EFRAG to publish a mapping of how ESRS’ climate disclosure standard aligns with the platform’s data bank (ESRS are the standards reported under CSRD). This is normal for CDP, as the platform always aims to align with the latest reporting standards.
Corporate
Amazon to start selling carbon credits
Amazon’s Sustainability Exchange, a digital platform that the commerce giant aims to use to provide guidance on emissions reductions, will now begin selling carbon credits. This will be US-based at first, and only available to companies who have already set emissions targets. Amazon’s communications on the new initiative have leapt to get ahead of criticism by insisting the credits will be “high-integrity” and “science-based”.
It was noted that this news came a day after the SBTi’s 2.0 announcement (see above). Many speculated last year that the Amazon-affiliated Bezos Earth Fund – a previous financial supporter of the SBTi – had been attempting to put pressure on the organisation to accept more carbon offsets in its standards. As you can see from our story on 2.0, while there are more options for companies to be rewarded for carbon removals work, the standard doesn’t now allow lots of offset usage as had been feared.
Calendar
2025
UK SRS: UK Sustainability Reporting Standards (SRS) published – Q1 2025
UK SDR: UK Sustainability Disclosure Requirements (SDR) rules on labelling of sustainability-focused funds to come into force – April 2025
ESMA: ESMA Guidelines on fund names using ESG or sustainability-related terms to apply to funds which existed before the rule change – 21st May 2025
London Climate Action Week 2025 – 21st-29th June 2025
New York Climate Action Week 2025 – 21st-28th September 2025
COP: COP30, Belém, Brazil – November 2025
SBTi: Corporate Net-Zero Standard (CNZS) V2.0 to come into force – by end of 2025
2026
UK SRS: UK listed companies need to begin work on their IFRS Sustainability Standards (ISSB Standards) and transition plan reporting, in order to be ready for next year
2027
UK CBAM: UK Carbon Border Adjustment Mechanism (CBAM) comes into force, initially addressing aluminium, cement, fertiliser, hydrogen, iron and steel. 1st January 2027
UK SRS: UK Sustainability Reporting Standards (SRS) to become mandatory for FY26 reporting, making the IFRS Sustainability Standards S1 and S2 (the ISSB Standards) and transition plan reporting mandatory – FY26 reporting
2028
CSRD: (The following is based on the current Omnibus proposal but is not final) – Large companies with over 1,000 employees, including non-EU companies listed on an EU market and large EU subsidiaries of US companies, are to report CSRD. A large company or undertaking is here defined as meeting two or more of the following criteria, in two consecutive financial years: >250 employees, >€25m balance sheet, >€50m turnover – FY27 reporting.
2029
CSRD: (The following is based on the current Omnibus proposal but is not final) – Non-EU undertakings with EU branches / subsidiaries must report ESRS for the previous business year. This applies if the non-EU undertaking has a net turnover generated within the EU above €450 million, and if it has either subsidiaries that are large undertakings or SMEs with securities traded on an EU market; or if it has branches with net turnover generated in the EU above €50 million – 1st Jan 2029
Questions on the above? Contact hello@sillion.co.uk with any queries, comments or feedback.