SBTi Explains Core Differences Between Near-Term and Net-Zero Climate Targets

The Science Based Targets initiative has published an explainer distinguishing near-term science-based targets — which cover emissions reductions over five to ten years — from net-zero targets, which combine near-term action with a long-term commitment to reduce emissions by at least 90% across the full value chain by no later than 2050. Both types are available for validation through SBTi Services.

Near-term targets are the foundation of corporate climate action under the SBTi framework and are mandatory for all companies seeking validation. They must cover at least 95% of a company's direct scope 1 and scope 2 emissions. If more than 40% of total emissions come from the value chain (scope 3), a separate scope 3 target is also required, covering at least 67% of those emissions. Net-zero targets build on near-term targets by adding a long-term commitment to reduce emissions by at least 90% before 2050, covering at least 95% of scope 1 and 2 emissions and 90% of scope 3 emissions.

Companies achieving their long-term net-zero target must also neutralise any remaining residual emissions — those that cannot be fully abated — through permanent carbon removals. The SBTi also recommends Beyond Value Chain Mitigation (BVCM) actions, which are investments in climate mitigation outside a company's own value chain, such as supporting nature-based solutions or emerging removal technologies. BVCM is positioned as supplementary to, not a substitute for, direct emissions reductions within operations and supply chains.

At the time of publication, the SBTi was inviting companies to participate in pilot testing of the draft Corporate Net-Zero Standard Version 2 to ensure it is both scientifically robust and practically implementable. The draft had undergone a 90-day public consultation with input from more than 855 stakeholders. Companies building targets under the current Corporate Net-Zero Standard V1.3 are encouraged to proceed without delay, as targets validated under existing standards are expected to remain valid throughout their target cycles after Version 2 is finalised.

Key figure — 90% minimum emissions reduction required for a net-zero target, achieved by no later than 2050