A letter from South Pole CEO Daniel Klier to The Science Based Target initiative’s (SBTi’s) Board of Trustees

We commend the monumental effort the SBTi is undertaking to revise the Corporate Net-Zero Standard (CNZS). This consultative approach and science-led framework has set a pragmatic yet ambitious tone, with a continued emphasis on emissions abatement.

South Pole welcomes the SBTi’s shift towards action, as reflected in the introduction of alignment metrics, increased flexibility on scope 3 emissions, and a stronger focus on progress tracking, accountability, and transparency. The new requirement for a climate transition plan is also key to increasing companies’ credibility.

However, the path to 2050, and crucially, to a low-emissions economy thereafter, requires bolder action from companies ahead of the full operationalisation of compliance carbon markets. High-integrity, scalable carbon markets are essential to bridge the emissions gap, particularly the 6-10 gigatonnes of annual removals required by mid-century. They are also essential to mobilise climate finance to the areas where finance is needed most, in particular in the Global South. 

South Pole therefore urges the SBTi to adopt a bolder approach that goes beyond the scope of proposed updates by:

At the current rate of emissions, the remaining carbon budget to limit global warming to 1.5°C is projected to be exhausted by 2029. This trajectory heightens the risk of severe climate impacts and diminishes our capacity to mitigate long-term damage. It is therefore in our collective interest to take immediate action to manage ongoing emissions and extend the viability of the remaining carbon budget. The CNZS can take specific steps to advance this effort.

• Allow high-quality insetting where credible methodologies, third-party standards, and carbon accounting rigour apply, enabling companies to support mitigation within their supply chains while maintaining environmental integrity
• Expand efforts beyond Category A to also encourage medium-sized companies in low- and middle-income countries to set scope 3 targets, in order to enhance global emissions coverage
• Introduce a defined target for beyond value chain mitigation (e.g., annual percentage of ongoing emissions, scaling to 20%), which can be met through the use of high-integrity reduction or removals credits. Publicly recognise target achievement in reporting
• Look beyond carbon dioxide and include short-lived emissions (e.g., methane and hydrofluorocarbons) in BVCM target to manage outsized near-term impact on global warming
• Ensure alignment with Voluntary Carbon Markets Integrity initiative, Green Claims Directive etc., to provide consistent guidance and give companies the confidence to act

By 2050, the IPCC estimates that 6 to 10 gigatonnes of carbon removals will be required annually to achieve global net zero. Reaching this target will depend on the substantial growth and maturation of the carbon market—beginning with robust demand signals from the voluntary market, which the CNZS has a critical role to play in facilitating.

• Mandate companies address residual emissions by setting separate, annually increasing interim removals targets, taking a gradual transition approach
• Include interim targets for scope 3 residual emissions, guided by frameworks such as the Oxford Offsetting Principles (revised 2024), to support a phased transition from high-integrity avoidance to 100% permanent removals, whilst building sufficient capacity required to meet final-year net zero targets
• Further clarify support for carbon removals, both nature-based and technological, that meet stringent quality criteria and are aligned with compliance-grade standards
• Consider mechanisms that signal sufficient medium-term demand to scale supply of removals (e.g., from 2026, require companies to have an offtake agreement in place to cover 3-5 years' worth of interim targets, with delivery starting in 2030)

To maintain momentum and engagement from the private sector, it is essential that companies are recognised and rewarded for taking ambitious, science-based action, especially when they go above and beyond by investing in climate solutions outside their value chains.

We welcome continued dialogue in this important evolution of the CNZS. Thank you for your leadership in advancing credible pathways to net zero.

Best regards,

Daniel Klier
CEO, South Pole