Comparison of SBTi Draft Guidance and Athian’s Program Offering

The Science Based Target initiative (SBTi) recently released the initial draft of its guidance for corporate net-zero standards. An SBTi survey showed that tackling Scope 3 emissions is one of the most significant challenges companies have in net-zero target setting and progress. Therefore, the draft standard proposes flexibility in target setting as well as a focus on emission-intensive activities and where companies have the greatest influence.

Many of their proposed changes are in line with how Athian already operates – by making direct connections within the livestock value chain, certifying traceable claims and leveraging technology for scalability. The following matches up the SBTi draft guidance with the science-based process, assurances, and services offered by Athian.

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Importance of Scope  3 Emission Sources

‍Relevant Scope 3 emission sources include:

• Significant Scope 3 categories representing 5% or more of total Scope 3 emissions; and
• Emission-intensive activities representing 1% or more of total Scope 3 emissions or at least 10,000 tons of carbon dioxide equivalent (CO2e) per year.

Athian Analysis: Athian can help companies focus on specific sources of Scope 3 emissions in their supply chain. We have protocols that address emissions from enteric methane, manure methane, nitrous oxide and feed. We are adding new protocols that impact more emission sources each year.

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Required Reporting of Scope 3 Inventories‍

Companies are required to report relevant Scope 3 emission sources annually, with full Scope 3 reporting every three years. This revision is intended to encourage focus on reducing the most critical emission sources.

Athian Analysis: Athian can provide reports detailing the verified emission reductions achieved by project, protocol and sources of emission that are most relevant for companies.

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Primary Versus Secondary Data

Companies should make use of primary data rather than secondary data.

Athian Analysis: Athian can provide primary data from on-farm verification of project outcomes collected by accredited third-party auditors.

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Verification of Emissions Inventories

This draft introduces a new requirement for companies to obtain, at a minimum, limited assurance for their GHG emission inventories from independent third-party verifiers. This aligns with emerging frameworks, such as the European Union’s Corporate Sustainability Reporting Directive.

Athian Analysis: The GHG emission reductions achieved by an Athian protocol must be verified by accredited third-party reviewers before a protocol is published for on-farm implementation, supporting the assurance of company claims.

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Qualifications of Verifiers‍

Assurance shall be conducted by an independent third-party organization, accredited by a recognized body and in line with internationally recognized GHG emissions assurance standards.

Athian Analysis: All Athian protocols are verified by an independent third-party accredited by a recognized body consistent with ISO standards.

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Data Quality‍

To focus efforts on relevant emissions sources, companies are required to determine the level of traceability for emission-intensive activities and significant Scope 3 categories in their base year and develop a plan to increase traceability over time.

Athian Analysis: Athian helps achieve reductions of relevant emissions within a company’s inventory, provides auditable traceability to support Scope 3 claims and helps demonstrate progress toward targets.

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Prioritization of Scope 3 Targets‍

The revised standard explicitly incentivizes companies to prioritize action on the most relevant sources of emissions in their value chain. This approach requires companies to focus Scope 3 targets on the most emission-intensive activities within their value chain and those where they have the greatest influence (e.g., Tier 1 suppliers).

Athian Analysis: Athian can help companies take action on the most relevant sources of Scope 3 emissions within their supply chain and facilitate collaboration with their Tier 1 suppliers.

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Target Setting Methods‍

Companies can choose from multiple methods, including absolute, intensity or alignment methods. Allowing companies to choose their target-setting methods accommodates different business models and varying levels of data availability and maturity while enabling more advanced companies to adopt sophisticated approaches.

Athian Analysis: Athian supports multiple target-setting methods, including the absolute, intensity and alignment methods.

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Role of Tier 1 Suppliers‍

This draft introduces a new requirement for companies to require Tier 1 suppliers to align with net-zero.

Athian Analysis: Athian can help companies prioritize action for the most relevant sources of emissions and facilitate collaboration with Tier 1 suppliers.

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Substantiating Progress Against Scope 3 Targets‍

The revised standard acknowledges challenges related to traceability and data quality and allows for interventions at the activity-pool level (e.g., supply sheds) when direct traceability to specific emission sources is not feasible.

Additionally, the standard recognizes the use of indirect mitigation approaches (e.g. book-and-claim commodity certificates) where direct traceability is not possible, or persistent barriers prevent mitigation at the source.

Athian Analysis: Athian can support a flexible supply shed definition to align to different company inventory reporting methodologies. Athian also supports book-and-claim indirect mitigation projects along with direct mitigation, creating a standardization of reporting and access to primary data.

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Direct Mitigation

Where full traceability is not possible, companies may rely on emissions data and interventions at the ‘activity pool’ level to assess performance and substantiate progress against targets. The activity pool represents a set of emissions sources that may physically serve the reporting entity but lack specific traceability to individual sources. Examples include an upstream supply pool, such as a supply shed from which companies source a specific commodity.

Athian Analysis: Athian can calculate an average emission factor for a company’s defined supply shed and the farms within it that are implementing emissions reducing protocols.

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Indirect Mitigation

SBTi recognizes that achieving traceability may be more challenging for some activities, such as agricultural commodities. To address this, the SBTi is exploring how different types of indirect mitigation could serve as interim measures toward meeting targets.

Indirect mitigation encompasses actions that drive measurable net-zero-aligned transformation relevant to a company’s value chain and comparable to direct mitigation but lack a physical connection to the reporting company’s value chain.

While these measures do not affect a company’s inventory under the GHG Protocol Standards and are required to be reported separately, their goal is to enable direct mitigation in the long term.

Athian Analysis: Athian can support book-and-claim indirect mitigation projects along with direct mitigation, creating a standardization of reporting and access to primary data.

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Reporting Progress

Companies shall not count actions resulting in mitigation outcomes outside of the company’s value chain toward progress and achievement of abatement targets.

Category A companies shall provide evidence of third-party assurance for data substantiating target progress.

Companies ensure that all claims covered in this standard, including those regarding target achievement, are accurate, verifiable and adhere to high-integrity standards and applicable regulations.

All claim content shall be fully substantiated with relevant and verifiable evidence, which shall remain accessible for transparency purposes and available to the SBTi, third-parties and/or regulatory bodies upon request.

Athian Analysis: Athian can support direct and indirect mitigation activities within a defined supply shed and industry so that companies can reach their goals without the use of carbon credits. Additionally, all Athian protocols are required to be verified by an accredited and independent third party. The Athian platform was built to support fully substantiated claims with relevant and verifiable evidence that remains accessible and is available upon request.