SBTi released a new Corporate Net‑zero Standard that will bind more than 10,000 signatories, covering over 40 % of global market cap. The update trims the 1.5 °C language and drops an hourly‑matching REC rule that big tech opposed, sparking debate over the balance between ambition and commercial reality.

Under the old rules, firms could power data centres with gas and offset via RECs from distant solar plants, a practice critics label greenwashing. A draft required “hourly matching” to align renewable supply with demand, but major players like Meta and Amazon lobbied to remove it, arguing current market infrastructure could not support it.

The revised framework retains a requirement that large companies disclose the proportion of RECs that are hourly matched, yet imposes no minimum. It also drops the 2040 100 % renewable electricity target, replacing it with a broader “best‑efforts” clause that may ease compliance for firms facing supply constraints.

Critics argue the softened rules dilute the science and could slow the transition, while SBTi CEO David Kennedy says the changes reflect market realities and keep the program attractive to new members. The fee structure now sees $7 million of its $28.5 million revenue coming from target validation, underscoring the organization’s commercial model.