Net Zero Is Getting Real: How Indian Businesses Can Comply with SBTi’s New Rules
By Dr. Sanjay Vashishtha, CEO – Firstgreen Consulting Pvt. Ltd.
As net-zero pledges shift from aspiration to accountability, the Science Based Targets initiative (SBTi) has released the Corporate Net-Zero Standard Version 2.0, a game-changing update that raises the bar for corporate climate action.
The new standard makes one thing clear: vague commitments are no longer enough. Companies must now demonstrate measurable progress, reduce emissions across their value chain, and validate their claims through rigorous, science-based criteria.
At Firstgreen Consulting, we see this as a pivotal moment for Indian businesses—particularly in sectors like real estate, IT services, manufacturing, and infrastructure—to lead with credibility.
🚨 What’s Changed in SBTi Net-Zero Standard v2.0?
SBTi’s Version 2.0, currently under consultation, introduces several important changes:
- Mandatory Scope 3 Coverage: Companies must now target 90%+ of Scope 3 emissions, a significant increase from the earlier 67%.
- New Validation Cycle: Net-zero targets must be reviewed and revalidated every 5 years, ensuring ongoing alignment with 1.5°C pathways.
- Sector-Specific Guidance: Particularly for emissions-intensive sectors like construction, aviation, and heavy industry.
- Enhanced Claims Framework: No more net-zero claims based solely on offsets. Companies must show actual emissions reductions before neutralising residuals.
- Tailored Criteria by Geography and Size: Companies are now categorised as A or B, with differing levels of compliance depending on capacity and location.
This means the transition from carbon ambition to carbon action now has a clear rulebook.
🇮🇳 What It Means for Indian Businesses
Indian companies like Infosys, Wipro, Mahindra Group, and Godrej have already committed to science-based net-zero targets. But for many others, the path remains unclear—especially when it comes to Scope 3 mapping, value chain engagement, and transition plans.
If you’re a large company headquartered in India (an “upper-middle-income” country under SBTi classification), you’re in Category A—which means full compliance with the new rules is expected.
This includes:
- Preparing detailed GHG inventories across all scopes
- Setting near-term and long-term emissions targets aligned with IPCC AR6 pathways
- Publicly releasing a climate transition plan within 12 months of target validation
- Demonstrating meaningful emissions reductions before making claims
🔧 How Firstgreen Can Help
As a leading sustainability advisor with over 14 years of experience, Firstgreen Consulting offers end-to-end support to companies aiming to align with SBTi:
| Our Services | What We Deliver |
|---|---|
| 📊 GHG Emissions Mapping | Full Scope 1–3 inventory, aligned with ISO 14064 and GHG Protocol |
| 🎯 Target Setting & SBTi Alignment | Science-based targets (SBTs) that comply with v2.0 validation protocols |
| 📑 Transition Plan Design | Climate roadmap in line with UN Race to Zero and SEBI’s BRSR Core |
| 🌿 Carbon Removal & BVCM | Guidance on high-integrity removals and beyond value chain mitigation |
| 🔁 Progress Monitoring & Disclosure | Tools to track progress and ensure 5-year revalidation readiness |
We also bring domain-specific expertise in LEED/IGBC, energy modelling, zero waste, and carbon finance—making us uniquely positioned to integrate SBTi guidance with existing ESG frameworks.
📈 The Business Case for Acting Now
- 🏦 Access Green Finance: ESG funds and green bonds increasingly require SBTi-aligned targets.
- ⚖️ Stay Ahead of Regulation: SEBI’s evolving climate disclosure norms are moving toward mandatory assurance.
- 🌐 Global Market Access: International buyers and investors are screening for credible net-zero pathways.
- 🌟 Brand Leadership: Demonstrating climate ambition is fast becoming a mark of reputation and resilience.
✅ Let’s Get You Ready
The message from SBTi is clear: Net zero isn’t a press release—it’s a plan. Firstgreen Consulting is here to help you build that plan with clarity, credibility, and compliance.
📨 Reach out to us at sanjay@firstgreen.co
🌐 Learn more: www.firstgreen.co
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