SBTi Outlines Four Objectives for Corporate Net-Zero Standard Version 2

The Science Based Targets initiative announced in November 2024 that it is revising its Corporate Net-Zero Standard with a target to release Version 2 in early 2026. More than 1,200 companies have validated net-zero targets under the existing V1 standard, which was first published in 2021.

The SBTi identified four objectives for the revision: aligning with the latest climate science, particularly the IPCC Sixth Assessment Report published in 2023; enabling continuous improvement and progress assessment against targets; improving value chain, or scope 3, target setting; and enhancing the standard's structure and interoperability with other climate frameworks and regulations. The revision follows the SBTi's Standard Operating Procedure, which requires standards to be reviewed every one to five years. A public consultation on the draft was planned for early 2025 with a minimum 60-day feedback period.

Scope 3 emissions, which include those across a company's full value chain, are a particular focus of the revision because they represent the largest portion of most companies' total footprint. CDP research cited by the SBTi found that scope 3 emissions are on average 26 times those of scope 1 and 2 combined. The SBTi is exploring a more comprehensive toolkit for managing value chain emissions, a more nuanced approach to target-setting boundaries and a clearer framework for defining the degree of company influence over supplier and customer emissions.

The fourth objective, improving interoperability, responds to the growing number of climate-related standards, frameworks and regulations with which companies must now engage. The SBTi aims to reduce the compliance burden by aligning the V2 standard with other relevant requirements wherever possible. A discussion paper on the potential role of environmental attribute certificates, including carbon credits, was published as part of the research phase. The Terms of Reference for the revision note that the Technical Council must review and approve the draft before public consultation, meaning the early-2026 timeline remains subject to change.

Key figure — More than 1,200 companies hold SBTi-validated net-zero targets under V1 standard