The Science Based Targets Initiative (SBTi) released revised guidance Thursday, reshaping how more than 11,000 firms in its voluntary programmes report net‑zero progress. Under the new rules, companies may miss a target if they can prove they made science‑based “best efforts”, disclose obstacles and show concrete actions. SBTi says this transparency reduces legal and reputational risk, though it will not name laggards publicly.

The changes sparked a backlash from environmental groups. A coalition of 26 NGOs warned that making the optional hourly energy‑matching system “unscientific” could render the standard‑setter irrelevant. Tech giants such as Meta and Amazon have lobbied for the softer provisions, allowing them to claim clean‑energy coverage for gas‑powered data centres without actual purchases, to the climate agenda.

Investors will watch how firms use the new leeway to buy carbon credits linked to low‑carbon products like sustainable aviation fuel or green steel, a cheaper route than overhauling supply chains. SBTi argues the framework preserves ambition while adding practicality, but critics argue the lack of enforcement risks diluting climate accountability as corporations balance cost pressures with shareholder expectations.