SBTi - New Chemicals Sector Target Setting
Since 2018, the Science Based Target Initiative (SBTi) has been working in the development of of chemicals sector science-based target setting methods and guidance. Through deep engagement with companies, experts, and stakeholders, the SBTi has tackled the challenges of setting science-based targets, crafting innovative tools, and launching public consultations to build a robust framework for decarbonization.
The goals of the project are:
Develop sub-sector pathways for high-impact products based on the principles of SBTi’s Sectoral Decarbonization Approach (SDA).
Identify best practices for emissions accounting with a focus on critical scope 3 categories for the industry.
Provide guidance on addressing the impact of the circular economy (e.g. recycling) in accounting and target setting.
Set expectations for scope 3 target setting in high-impact categories by chemical companies.
Based on the first public consultation feedback report, the following changes were adopted in the initial Chemicals Sector Criteria and Tool, reflecting stakeholder input and how their concerns were addressed. The document changes are captured in the main changes document.
Adopted in line with feedback (no response needed) – The supplemental memorandum already includes detailed rationale for the selection of emissions scenarios and the derivation of pathway data, meaning no major revisions are required.
Partly adopted in line with feedback – While transparency is recognized as critical for trust and credibility, and the memorandum provides clarity on assumptions and methodologies, the request for further details on limitations and uncertainties may be refined in future iterations, indicating partial alignment.
For further consultation—feedback dismissed – The concern about the exclusion of scope 3 category 11 from FLAG Guidance for fertilizers has not yet resulted in a change, but the SBTi commits to evaluating this feedback rather than dismissing it outright.
Further development needed – The SBTi has stated its intention to review stakeholder concerns regarding scope 3 category 11 emissions and will summarize any revisions in the second consultation period, suggesting ongoing discussions in future guidance updates.
As the second public consultation and pilot testing wrap up, anticipation builds for the final guideline and tool for the Chemicals Sector Target-Setting Criteria. Soon, we will see whether concerns about scope 3 emissions and alternative feedstock targets have been adequately addressed, shaping a framework that truly reflects the impact of the circular economy.
