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SBTi Sector Pathways & Net-Zero Standard (2026 Guide)

By Sustainability Awakening • Dr. Ahmad Mahmood
1. What Is SBTi?

1.5°C Corporate Targets

Aligns company Scope 1, 2, and 3 GHG cuts with a 1.5°C budget.
2. Cross-Sector ACA

4.2% Linear Annual Cut

Standard near-term Scope 1 and 2 pathway cuts 4.2% per year.
3. Sectoral SDA

Intensity Convergence

Heavy industry converges to 2050 physical intensity benchmarks.
4. Power & Utilities

tCO2e per MWh Generated

Power generators follow steep intensity paths to clean grids.
5. SBTi FLAG Pathway

Forest, Land & Farming

Required if land-based emissions reach 20% of total GHG.
6. Scope 3 Rule

40% Materiality Trigger

When Scope 3 is 40%+ of total GHG, a Scope 3 target is required.
7. Coverage Rules

95% Scope 1+2 & 67% S3

Near-term targets cover 95% of Scope 1+2 and 67% of Scope 3.
8. Long-Term 2050

90%+ Deep Abatement

Companies cut emissions 90%+ before neutralizing residual GHG.
9. Carbon Credits

BVCM & Removals Only

Offsets cannot replace cuts; removals neutralize the last 10% or less.
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