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ESG Advisory · Net Zero

Net zero pathway — interim targets, residual emissions, neutralization.

A credible net zero pathway requires more than a 2050 target. SBTi’s Net Zero Standard requires near-term (5-10 year) interim targets, long-term (2050) decarbonization targets, residual emissions calculation, and a defined neutralization approach. Othello prepares the bilingual net zero pathway documentation.

2050
Long-term horizon
90%
Minimum decarb before neutralization
Annual
Interim reporting cycle
SBTi NZS
Validation standard
Definition

What net zero actually means under SBTi

SBTi’s Net Zero Standard defines net zero as at least 90% decarbonization of Scope 1, 2, and material Scope 3 emissions by the target year, with the residual 10% or less neutralized through permanent carbon removal. Carbon offsets (avoided emissions) do not count toward the 90% threshold.

Pathway

Near-term and long-term targets

The credible net zero pathway has two SBTi-validated targets: a near-term target (5-10 years) and a long-term target (typically 2050). The near-term target carries the operational and capital-allocation weight in the near term; the long-term target signals the trajectory.

Othello prepares the bilingual disclosure for both targets, the interim trajectory, and the annual progress reporting structure.

Neutralization

The residual 10%

Neutralization of residual emissions requires permanent carbon removal — not avoidance offsets. The current credible removal pathways include direct air capture with storage, bioenergy with carbon capture, mineralization, and high-permanence nature-based removals. The neutralization strategy must be disclosed and the underlying credit registry must be auditable.

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