SBTi Releases Updated Draft of Corporate Net-Zero Standard V2 for Second Consultation

The Science Based Targets initiative has published an updated draft of the Corporate Net-Zero Standard Version 2, incorporating feedback from the first public consultation, expert working group deliberations, and additional research. Stakeholders were invited to submit feedback on the revised draft by December 12, 2025, extended from the original deadline to allow thorough review.

The second draft introduces a scope-specific target approach, establishing tailored requirements for scope 1, scope 2 and scope 3 emissions separately. For scope 1, companies may choose from three approaches: reducing emissions on a linear pathway to residual levels, increasing the share of low-carbon activities over time, or implementing Asset Decarbonisation Plans for individual assets tied to technological readiness. For scope 2, the draft sets criteria for credible contractual instruments and geographic and temporal matching of low-carbon electricity. For scope 3, three options are available — emissions intensity, activity alignment, and counterparty alignment — reflecting the diversity of value chain mitigation levers.

The draft maintains a net-zero-by-2050 long-term ambition for all companies while introducing a new requirement for Category A companies — large companies in all countries and medium-sized companies in high-income countries — to publish credible transition plans. An Ongoing Emissions Responsibility framework requires Category A companies to progressively address the impact of emissions released on the path to net-zero, with a post-2035 requirement for an increasing proportion of these responsibilities to be met through carbon removals. The framework is designed to limit temperature overshoot and incentivise investment in long-lived carbon removal capacity.

A target renewal cycle has been introduced in the second draft, requiring companies to complete performance assessments at the end of each target period and set new targets. The draft also includes requirements for companies to report dependencies and barriers to target delivery, ensuring transparency when structural constraints limit near-term progress. Companies currently setting targets are encouraged to continue using Corporate Net-Zero Standard Version 1.3, which the SBTi confirms will remain valid and form a strong foundation for future alignment with the final Version 2 framework.

Key figure — December 12, 2025 — extended deadline for second public consultation on Corporate Net-Zero Standard V2