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SBTi Updates

Jul 10, 2026 12:22:52 PM

SBTi Corporate Net-Zero Standard V2.0 – What's New, and Why Does It Matter?

The Science Based Targets initiative (SBTi) has become the leading global framework for companies seeking to establish science-based climate targets. Over the past decade, more than 11,000 companies worldwide have set science-based targets through SBTi, making it one of the most influential frameworks for corporate climate action globally.

On 11 June 2026, SBTi published the final Corporate Net-Zero Standard Version 2.0 – the most significant revision of the framework since the original Net-Zero Standard was launched in 2021. The new Standard marks a strategic shift for SBTi: from a framework focused primarily on target setting, toward a role as an implementation partner helping companies turn ambition into measurable, real-world emissions reductions.

This article explains what SBTi is, how Version 2.0 was developed, what has changed, and why it matters for companies working with climate strategy and decarbonization.

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What is SBTi?

The Science Based Targets initiative (SBTi) is a globally recognized framework for developing and validating science-based climate targets.

The framework helps organizations align greenhouse gas reduction targets with climate science and the objectives of the Paris Agreement. SBTi is widely regarded as the leading methodology for setting credible emissions reduction targets and demonstrating climate leadership.

SBTi was established as a collaboration between CDP, the UN Global Compact, the World Resources Institute (WRI), and WWF, in partnership with the We Mean Business Coalition.

Companies with validated SBTi targets demonstrate that their climate ambitions are grounded in scientific methodologies rather than internally defined aspirations.

How Version 2.0 Came About

Version 2.0 is the result of a rigorous, multi-year development process:

2021: The original Corporate Net-Zero Standard was launched, establishing the world's first science-based framework for corporate net-zero target setting.
2021–2024: SBTi released incremental updates (through Version 1.3.1) and strengthened its governance, including an independent Technical Council, before formally initiating a full revision supported by expert working groups.
2025: Two public consultation drafts were published (March and November), refined through feedback from hundreds of businesses and stakeholders, alongside pilot testing with companies.
June 2026: The final Standard was approved by SBTi's independent Technical Council, adopted by the Board of Trustees, and published on 11 June 2026.

What's New in the Net-Zero Standard V2.0?

Greater Scope 3 flexibility – More practical pathways such as supplier engagement, green procurement, and focus on the most emissions-intensive value chain activities.
"Best efforts" principle – Companies facing barriers outside their control stay within the framework, provided they are transparent and use all available levers to progress.
Focus on action, not just targets – Strengthened requirements for transparent progress reporting and continuous improvement.
Mandatory transition plans – Larger companies must show how targets will be achieved through strategy, capital allocation, and operational decarbonization.
Carbon removals and BVCM – A voluntary recognition mechanism rewards action on ongoing emissions, but only as a complement: carbon credits cannot be counted toward reduction targets.
Tailored requirements – Obligations are differentiated by size, sector, geography, and emissions profile: comprehensive for larger companies (Category A), proportionate for smaller ones (Category B).

Transition Timeline

Throughout 2026: Version 1.3.1 remains the applicable framework for target validation.
From Q1 2027: Companies may submit targets under either Version 1.3.1 or Version 2.0.
From 1 February 2028: All new submissions must align with Version 2.0. Existing near-term targets remain valid until the end of their target timeframe.

Why Is This Relevant for Companies?

Although SBTi remains voluntary, science-based climate targets are increasingly becoming a business expectation

Value chain expectations – Many large organizations already require suppliers to disclose climate targets; a validated SBTi target strengthens competitiveness in procurement.

Reporting alignment – SBTi supports disclosure requirements under CSRD and IFRS S2, and as the leading industry standard it is expected to set the direction for future regulation and market expectations.

A defined deadline – The requirements and timeline are now fixed; companies that build capabilities early will be well positioned before 2028.

Getting Started

For most organizations, the journey begins with:

Measuring Scope 1, Scope 2, and Scope 3 emissions
Establishing a baseline year
Identifying emissions reduction opportunities
Developing science-based targets
Embedding climate objectives into business strategy and decision-making

With the Corporate Net-Zero Standard V2.0 now published, the requirements are defined and the timeline is set. Feel free to contact us to learn more about what Version 2.0 means for your organization.

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Sources: SBTi Corporate Net-Zero Standard Version 2.0 (published 11 June 2026); SBTi news release, 11 June 2026; SBTi Draft Corporate Net-Zero Standard V2 Public Consultation (March 2025); SBTi Second Draft Corporate Net-Zero Standard V2 for Consultation (November 2025); SBTi Consultation Materials and Technical Summary.