SBTi Releases Version 2.0 of Corporate Net-Zero Standard With Expanded Implementation Tools

The Science Based Targets initiative has launched Version 2.0 of its Corporate Net-Zero Standard, the most comprehensive update to the framework since its inception, covering company categorisation, governance requirements, and new scope-specific target-setting approaches. More than 11,000 companies already hold validated targets under the initiative's earlier versions and will see existing commitments remain valid.

Version 2.0 introduces company categorisation that distinguishes Category A — typically larger businesses in higher-income countries — from Category B, which includes smaller companies and those in lower-income countries. Category B companies are exempt from certain requirements such as transition plan disclosure, base year data assurance, and scope 3 target setting. The standard also requires all companies to obtain formal board-level approval for their targets and to maintain transition plans that embed climate action into core business decision-making.

New scope-specific target-setting methods allow companies to choose from three approaches for scope 1 emissions: absolute reduction on a linear trajectory, emissions intensity reduction, or asset transition based on a phased decarbonisation plan. Scope 2 targets must separately cover 100% of purchased electricity, heat, steam and cooling, with location-matching requirements for low-carbon electricity procurement. Scope 3 targets remain mandatory for Category A companies and optional for Category B, covering emission categories that represent 5% or more of total scope 3 emissions. The update also introduces an Ongoing Emissions Responsibility programme requiring Category A companies to address a portion of their ongoing emissions with carbon removals from 2035.

Companies setting or renewing targets in 2026 are urged to proceed under Version 1.3.1, which remains a valid and well-established framework. For India, where 445 businesses have set or committed to science-based targets, Version 2.0's tiered categorisation and flexible scope 3 approach are particularly relevant given the complexity of domestic supply chains. Version 1 will remain open for submissions until January 31, 2028, after which all new target submissions must use Version 2.0. The SBTi will host webinars and publish additional resources throughout the second half of 2026 to support the transition.

Key figure — 445 Indian businesses have set or committed to science-based targets