New research from Oxford Net Zero and the Smith School of Enterprise and the Environment finds that the voluntary climate standards used by companies to set decarbonisation targets are increasingly unified and can drive effective and meaningful progress to net zero – despite political headwinds against climate action in some countries.
“The scaffold is in place for net zero standards to encourage large-scale urgent corporate decarbonisation, in a way that supports integrity in accountability and action”, says lead author Dr Matilda Becker. “Not only are net zero standards agreeing on what it means for companies to be net zero aligned, but also what governance mechanisms and internal implementation measures are needed to secure that transition. For instance, 85% of the standards we reviewed say that executive remuneration should be tied to achieving climate targets.”
The paper, A systematic review of the voluntary governance landscape for an urgent, high-integrity, and equitable transition to net zero, highlights best practices when it comes to setting targets, as well as areas that require further clarity. It also identifies areas where improvement is necessary, including short‑term targets, supply‑chain emissions, and clearer separation of carbon credits from inventory emissions reductions.
The research has published at a pivotal time for the voluntary standards landscape, with the Science Based Targets initiative (SBTi) and Greenhouse Gas Protocol (GHG Protocol) and International Organization for Standardization’s (ISO) Net Zero Guidelines either being updated or formalized.
“Our findings should be cause for optimism. Never before has there been more clarity about a common international definition of net zero”, says Kaya Axelsson, co-author and Net Zero Policy Engagement Fellow at Oxford Net Zero and the Smith School. “For years, climate change has been discussed as an unsurmountable, ‘wicked problem’. And yet, after years of work, thousands of non-state actors have converged around, common, clear, fair and formalised standards that can be audited in any country.”
The paper is of particular significance to the Oxford Net Zero team, as it represents the culmination of five years of work translating net zero science into formal guidance, beginning with a stocktake of net zero standards led by Professor Thomas Hale in 2021 and The meaning of net zero and how to get it right led by Professor Sam Fankhauser in 2022.
“We did what academics do best, which is provide impartial evidence on common best practices for decision makers to act upon”, explains Axelsson. This evidence was used by international experts from over 100 countries as part of the two-year ISO Net Zero Standard setting process.
Co-author Alexis McGivern, Head of Stakeholder Engagement, Oxford Net Zero, explains the significance of this moment for global climate governance: “The next few months will be critical as standards are updated and formalised. But the trajectory is clear – even in this turbulent period when some countries are backtracking, Oxford research shows that overall net zero policy for non-state actors is increasing in both ambition and rigor. Regardless of any one country’s policies, thanks to the tireless work of practitioners, civil society leaders and academics, the global net zero standards movement now has a momentum of its own.”
The Oxford Net Zero team would like to thank Emily Faint, Shana Gallagher and Daniel Barlow at the British Standards Institution and the International Standards Organisation for their partnership on this research.
