Driving credible climate action: HSF Kramer supports SBTi’s Corporate Net Zero Standard 2.0

Leading global law firm Herbert Smith Freehills Kramer has provided strategic legal support to the Science Based Targets initiative (SBTi) in connection with the development of its new Corporate Net-Zero Standard Version 2.0 (CNZS V2.0).

SBTi is a corporate climate action organisation that enables companies and financial institutions worldwide to play their part in combating the climate crisis. In this capacity, it is one of the world’s fastest-growing voluntary corporate climate initiatives, trusted by over 11,000 companies and financial institutions.

The CNZS V2.0 is SBTi’s most comprehensive framework for corporate climate action to date, with an expanded toolkit for setting and implementing targets. It makes credible, science-based climate action practical, accessible, and relevant for companies at every stage of the net-zero journey.

The firm conducted a legal review of successive drafts of the CNZS V2.0, suggesting amendments to mitigate legal and reputational exposure to the SBTi and companies operating under the CNZS arising from the CNZS V2.0 requirements, its claims framework, and the new responsibilities SBTi assumes in this version of the standard in relation to the assurance model and additional validation cycle assessments. In addition to identifying risks, the firm provided a mitigation strategy across a range of post-publication workstreams.

The Herbert Smith Freehills Kramer team was led by partner Sarah Ries-Coward, supported by UK head of ESG Jannis Bille, of counsel Ernst Müller and Leonie Timmers, and associate (Australia) Olivia Battcock. The team worked closely with Will Grazebrook, general counsel at SBTi.

Partner Sarah Ries-Coward commented: "In the net-zero transition, rigorous and practical frameworks are key to turn ambition into credible action. We are proud to have worked with SBTi across successive drafts of this landmark standard, providing strategic legal advice on the risk and mitigation architecture that underpins the CNZS V2.0."