SBTi Publishes Draft Corporate Net-Zero Standard V2 for Global Consultation

The Science Based Targets initiative released the first draft of its revised Corporate Net-Zero Standard for public consultation on 18 March 2025, with the feedback window running until 1 June 2025. The draft introduces new scope 3 flexibility, simplified requirements for emerging-market companies, and a formal mechanism to recognise and communicate progress against targets.

The draft Corporate Net-Zero Standard V2 proposes several substantive changes from the current version. On scope 3—identified by over half of surveyed businesses as the most significant challenge in net-zero target-setting—the draft introduces options to set targets for green procurement and revenue generation rather than solely direct emissions reduction. The draft also splits scope 1 and scope 2 requirements to reflect distinct decarbonisation challenges, including a commitment to transition to low-carbon electricity no later than 2040. Streamlined requirements are proposed for medium-sized companies in developing markets and SMEs to broaden participation.

The revised standard also explores incentives to scale carbon removals and mobilise climate finance through Beyond Value Chain Mitigation recognition and interim carbon removal targets. A new progress tracking and communication requirement will enhance accountability and recognise companies leading on decarbonisation. These changes are particularly relevant for Indian companies, where scope 3 measurement remains nascent and barriers to science-based target adoption have included data availability and the complexity of aligning with existing international frameworks.

SBTi plans to combine public consultation feedback with input from expert working groups and pilot testing to refine the draft before finalising the standard. A comprehensive transition pathway will ensure companies can continue setting targets under V1.2 without disruption during the revision process. Chair Francesco Starace said the draft addresses complex, emerging issues and is designed to enable more companies to move further and faster toward net-zero, with more than 3,000 companies already holding net-zero targets or committed to setting them.

Key figure — More than 3,000 companies with net-zero targets or commitments to set them