Last updated: 29/06/2026
The Science-Based Targets initiative (SBTi) published the first major update of its Corporate Net Zero Standard in June 2026, with it set to become the primary framework for new submissions from 2028.
What is the new Corporate Net Zero Standard Version 2.0?
The Corporate Net Zero Standard Version 2.0 is a new framework that SBTi will use to validate Net Zero targets. With over 11,000 companies already engaged with SBTi, the revised standard introduces new approaches to Scope 3 emissions, implementation support, and recognition for credible progress towards Net Zero.
SBTi is shifting the focus from ambition alone to credible delivery and accountability. The updated standard emphasises embedding science-based targets into core business decision-making, linking them to transition planning and real-economy actions.
Companies are expected to actively manage transition risks, pursue emissions reductions on a transparent “best-efforts” basis, and continuously demonstrate progress. Ultimately, this evolution is designed to strengthen resilience, enhance competitiveness, and ensure that net-zero commitments translate into measurable outcomes.
Who can set targets using Version 2.0?
The Corporate Net Zero Standard Version 2.0 is currently available as a draft for consultation, with the final standard expected in 2027. Once launched, it will become the primary framework for companies submitting new corporate Net Zero targets from 2028.
Existing organisations with validated targets under Version 1.2 will continue to follow the requirements in place when their targets were approved until SBTi publishes its transition arrangements.
As stated on the SBTi website, the standard will apply to:
- Companies preparing to renew existing targets in 2027
- Companies planning target submissions from Q1 2027
- Companies seeking to understand future requirements
What are the changes under 2.0?
Greater focus on delivery
The original standard is heavily focused on target setting. However, V2.0 shifts the focus more onto the actual delivery, requiring organisations to demonstrate how targets are being embedded into operations, investments, and long-term transition planning.
The aim is to ensure that commitments are being implemented and translated into measurable emissions reductions rather than remaining just business goals.
Separate Scope 1, 2, and 3 targets
One of the biggest changes is shifting away from the “one-size-fits-all” Scope 3 approach. Companies can use more tailored pathways depending on their sector and emissions profile.
Scope 3 target-setting focuses more on the most material sources of value-chain emissions.
There are changes to Scope 1 and 2 targets as well, with businesses required to set individual targets rather than combined ones.
More transparency and accountability
The new Standard raises the bar on climate accountability. It’s no longer just about setting a Net Zero target. It’s the strategy behind the targets, the progress made, and the transparency in reporting that come to the forefront.
Companies will need to provide:
- Board-level oversight
- Climate transition planning
- Integration of climate considerations into business strategy
- Enhanced public disclosure and accountability, including demonstrating any progress made
New tiered requirements based on company size
Once a company sets targets under Version 2.0, the requirements will vary depending on its size and location. SBTi has introduced two company categories:
- Category A: Large companies from all countries and medium-sized companies from high-income countries
- Category B: Small companies from all countries and medium-sized companies from lower-income countries
Ongoing Emissions Responsibility (OER)
The new OER framework is set to replace the older concept, Beyond Value Chain Mitigation (BVCM). OER introduces a more structured approach for recognising and incentivising climate action beyond a company’s value chain, such as investments in high-quality emissions reduction projects, carbon removals, and nature-based solutions. However, businesses will not be able to offset their way to their Net Zero target; under the Net Zero Standard V2.0, these activities are reported separately from an organisation’s own decarbonisation efforts.
Carbon removals and residual emissions
The update provides more information on the role of carbon removals in achieving Net Zero. While businesses are still expected to prioritise reducing emissions across their operations and value chains, carbon removals will play an increasingly important role in addressing residual emissions that cannot be eliminated.
The focus stays on reducing emissions first, with removals acting as a complement rather than a substitute for decarbonisation.
What does it mean for businesses?
The revised Standard is designed to make science-based climate action more achievable while increasing accountability for delivery. For businesses, this means:
- Greater flexibility in how Scope 3 emissions are addressed, particularly through supplier engagement and targeted interventions.
- Increased expectations around governance, reporting, and demonstrating progress against targets.
- A need to develop and maintain credible climate transition plans that are integrated into wider business strategy.
- More focus on data quality, emissions monitoring, and ongoing performance tracking.
- Recognition for climate action beyond the value chain through the new OER framework.
- Different compliance requirements depending on company size, helping to reduce the burden on SMEs while maintaining ambition.
For many organisations, the shift from target-setting to implementation will require closer collaboration between sustainability, procurement, finance, and leadership teams to ensure climate commitments are embedded across the business and delivered with clarity.
Frequently asked questions
What is the SBTi Corporate Net Zero Standard Version 2.0?
The Corporate Net Zero Standard Version 2.0 is the latest framework from the Science Based Targets initiative (SBTi) for setting and delivering science-based Net Zero targets. It introduces updated requirements for Scope 1, 2, and 3 emissions, stronger governance expectations, greater flexibility for Scope 3 target setting, and an increased focus on implementation and measurable progress.
Do businesses need to set targets using the Standard Version 2.0?
Not necessarily. Businesses submitting new science-based targets from 2028 will need to use Corporate Net Zero Standard Version 2.0. Organisations with existing validated targets under the current standard do not need to transition immediately and can continue following the requirements that applied when their targets were approved until the SBTi publishes its transition arrangements.
What are the benefits of setting targets?
Version 2.0 helps businesses strengthen climate governance, improve transparency, develop credible transition plans, and demonstrate measurable progress towards Net Zero, while providing greater flexibility for managing Scope 3 emissions.
How do businesses set targets using Version 2.0?
Businesses begin by measuring their Scope 1, 2, and 3 emissions before setting science-based targets that meet Version 2.0 requirements. Targets are then submitted to SBTi for validation and monitored over time to demonstrate progress.
What are Category A and Category B companies?
Version 2.0 introduces two company categories with different requirements. Category A generally includes large companies worldwide and medium-sized organisations in higher-income countries, while Category B includes smaller companies and medium-sized businesses in lower-income countries. This differentiated approach is intended to make science-based target setting more proportionate while maintaining ambition.
Need support with the SBTi Corporate Net Zero Standard Version 2.0?
The transition to Version 2.0 introduces new expectations around governance, emissions reporting, Scope 3 target setting, and implementation planning. Whether you’re reviewing existing targets or preparing for future SBTi requirements, our sustainability experts can help you understand the changes and develop a practical, compliant approach.
Get in touch today to discuss how we can support your organisation’s transition to Version 2.0.
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