In March 2024, the Science Based Targets initiative (SBTi) made headlines by removing 239 companies—including global giants like Microsoft, Unilever, and JBS—from its roster for failing to submit net-zero targets by the deadline. It was a bold and necessary move to preserve the integrity of climate commitments. But what happened next has revealed a growing rift in how companies approach climate accountability.
Instead of rushing to revalidate their targets under SBTi, many of these firms have charted their own path. As of mid-2025, only 17 have returned to the SBTi fold. Others, like Microsoft and Unilever, are still pursuing ambitious decarbonization plans—but through different platforms, such as The Climate Pledge or the ACT Initiative, which offer greater flexibility around carbon offsets and interim targets.
So, what does this shift away from centralized voluntary frameworks tell us? Is this fragmentation a sign of innovation—or dilution?
The Evolution of Corporate Climate Governance
Over the last decade, voluntary standards like SBTi emerged as the gold standard for corporate climate action. Science-based targets brought structure, transparency, and credibility to what was once a vague corporate sustainability promise. Companies that aligned with these frameworks gained investor trust, regulatory goodwill, and stakeholder legitimacy.
But that trust came with strings attached: tight deadlines, narrow offset allowances, and rigid definitions of “net-zero.” As these frameworks grew more stringent—especially with the updated SBTi Net-Zero Standard—so did the friction.
The recent wave of companies opting out of SBTi doesn’t mean they’re abandoning climate responsibility. Rather, many are gravitating toward decentralized frameworks that better align with sector-specific realities, operational timelines, or geographic challenges.
Why Companies Are Going Elsewhere
Several themes are emerging from companies that are choosing not to return to SBTi:
- Flexibility with Offsets: Platforms like The Climate Pledge allow a broader range of offset strategies, including nature-based and carbon removal credits.
- Custom Timelines: Some initiatives don’t enforce the same short-term emissions reduction milestones as SBTi, allowing for sector-specific pacing.
- Reporting Fatigue: Multiple frameworks, overlapping disclosures, and evolving regulations are stretching internal sustainability teams thin. Companies are seeking platforms with streamlined or harmonized reporting pathways.
This is not a story of climate backsliding—it’s a story of fragmentation. And with it comes both opportunity and risk.
The Risk of Fragmentation
While decentralization may offer flexibility, it also creates uncertainty:
- Investors struggle to compare apples to apples. A “net-zero” claim under one framework may be far less ambitious than another.
- Greenwashing risks rise. Without harmonized standards, it becomes easier to cherry-pick lenient frameworks and still claim climate leadership.
- Global progress may stall. If every company plays by its own rules, the collective momentum needed to stay below 1.5°C weakens.
Frameworks like SBTi, CDP, and the emerging ISSB standards exist not just for corporate performance, but for collective coherence.
What’s Next for the Net-Zero Landscape?
The SBTi has announced it is revisiting its net-zero standard, potentially opening the door to more inclusive or flexible definitions. At the same time, multi-framework collaborations—such as CDP-ISSB alignment and UN Race to Zero updates—are trying to bring convergence across the ecosystem.
For now, the question isn’t “who’s right?” but “how do we realign?” Can we balance credibility with pragmatism? Can sector-specific realities coexist with global accountability?
These are the questions that will define the next phase of corporate climate governance.
Over to You
Is your organization sticking with SBTi, shifting to a new framework, or creating a hybrid approach? What matters more to your leadership—rigor, flexibility, or speed?
Reply in the comments or message us directly. We’d love to hear how your team is navigating the new net-zero landscape.
Reach out to us at info@aeiforo.co.uk