In this interview extract, Ethical Screening’s Managing Director Mike talks about his initial reactions to the SBTi’s long-awaited Corporate Net-Zero Standard Version 2.0, elements he likes, and a potential area for concern.
CB: So, it feels like it’s been a long time in the making, but SBTi 2.0 is finally with us!
MH: It is, and isn’t it glorious?
CB: Well from that I take it you’re a fan?
MH: Overall, I’d say I am, yes. I’m sure all the technical details are of great intertest to some, but for me I’m particularly fond of the whole ‘best-efforts’ elements. Well, I say that, but I’m also a tad conflicted because that worries me a little, too.
CB: Okay, well, I suppose like many things there are pros and cons, but shall we start with the pros? What is it about the whole ‘best efforts’ that you like?
MH: Because I’m a realist as well as an optimist, I think companies that are doing what they can to reduce their emissions shouldn’t have to hide the fact that they can’t go as far as they would like.
CB: This is related to the fact companies can still be compliant without meeting targets under the new standard, I assume?
MH: Yep - it’s the only way to make sure people can set genuinely achievable targets, but also be honest about when and where they’re struggling. If everyone is honest about where they’re hitting roadblocks it means we can work to address these, rather than fudging emissions figures and just pretending everything is hunky dory.
CB: Well that makes sense to me - real progress is better than fake ‘perfection’, right? Now, how do you feel about the fact that 2.0 includes new standards for companies in poorer countries? I know this is something you’re often passionate about?
MH: This is true. I’ve often said that it annoys me when businesses in poorer nations are expected to do as much as those in richer countries in terms of sustainability when they just don’t have the same capabilities as we do. Of course all companies need to be Net Zero or as-near-as in future, it’s just the reality and good business, but to expect businesses that are at a structural disadvantage to do so at the same rate as those who have for years had the upper hand is just ridiculous.
CB: I suppose we could talk about colonialism here, but I reckon that’s a conversation for another day...
MH: We’ll be here all day otherwise!
CB: Very true... so in that case shall we come back to your concerns about 2.0 and the idea of ‘best efforts’, assuming that’s what you have concerns about?
MH: Sure - so while I like the idea of honesty about where companies are struggling, I do worry that there’s a chance it could be used as a convenient excuse by some.
CB: An excuse not to reduce emissions you mean?
MH: Yeah, but also an excuse to kick the can down the road or blame others. Some people will always find a way to try and ‘prove’ that they’re using all levers or that there’s a barrier in place, even if that’s not the case. Greenwashing’s still a real problem, and while these frameworks do help to reduce it, it’s always something we should be on the lookout for.