SBTi Corporate Standard v2.0 – A once-in-a-decade update: initial reactions and brief summary

Yesterday, the Science Based Targets initiative (SBTi) published v2.0 of its Corporate Net Zero Standard, following two rounds of consultation in 2025.

The final Standard has watered down some of the requirements set out in the draft proposals, most notably around Scope 2 and renewable electricity procurement. Nonetheless, it represents a significant revision, introducing a more pragmatic, cyclical approach and a wider range of target-setting options.

Companies with existing validated targets are not required to act immediately. Because revalidation runs on a five-year cycle, v2.0 may not become mandatory for some companies until as late as 2032, depending on when their cycle falls. For new validations, v2.0 will be available from 1 February 2027 and mandatory from 1 February 2028. There is an 11-month transition period during which companies can choose between either Standard.

The SBTi has published several supporting documents alongside the Standard itself, as signposted in its blog article.

Key takeaways

Significant changes to the SBTi framework, but phased adoption depending on companies’ current validation status and preferences.

The SBTi has moved ahead of the GHG Protocol revisions that will underpin several target-setting and reporting elements of v2.0. Some further reconciliation may be required.

Interoperability with the forthcoming ISO Net Zero Standard (expected consultation June 2026, publication May 2027) remains uncertain. Given ISO’s historical emphasis on process over outcomes, it is possible that the ISO Net Zero Standard will provide a more accessible Standard, with SBTi providing an additional “gold stamp”.

See below for a list of the key features of v2.0, highlighting areas of change from the draft version:

Scope 1 and 2

Separate Scope 1, Scope 2 and Scope 3 targets retained.

Three target-setting options for Scope 1: (1) absolute, (2) intensity and (3) asset transition targets, with 100% emissions coverage.

Multiple Scope 1 options can be combined, but if setting a near-term target only, then only the absolute reduction option can be used, because the intensity and asset transition options require a long-term target as well.

Scope 2 is the area where there has been the greatest relaxation of consultation proposals. There are now two Scope 2 target-setting options: low-carbon electricity (LCE) alignment or absolute emissions reduction.

The threshold defining LCE is now defined as power at or below 0.048 kgCO2/kWh, tightening to 0.024 kgCO2/kWh from 2035. The draft had applied the stricter 0.024 figure from the start, so the final version relaxes the near-term threshold but holds the tighter level for the long run.

The ‘100% LCE by 2040’ milestone has been removed. The long-term Scope 2 target is now 100% LCE (or residual Scope 2 emissions) by 2050.

Hourly matching is no longer required, although reporting of the % of hourly matching is mandatory for power consumers >10 GWh/yr.

Overall, the new Scope 2 target setting criteria are stricter than the current (v1) criteria, with a 15-year generator age limit and tighter rules on physical deliverability.

Scope 3

Near-term targets must cover all categories contributing >5% of total Scope 3 emissions (was 10% in draft). Long-term targets must cover 100%.

Target options simplified into three overarching approaches: (1) absolute emissions reduction, (2) supplier/customer alignment, and (3) category- or activity-specific targets. Absolute reduction can be applied universally, while alignment approaches are limited to certain GHG categories.

Commodity-level targets for “emissions-intensive activities” (EIAs) are no longer mandatory. Instead, EIAs must be identified and disclosed but can be addressed through any eligible target setting approach. An EIA is significant where it represents 5% or more of Scope 3 emissions.

‘Implementation hierarchy’, with activity pool and sector-level mechanisms, is available where direct value chain action is not feasible. As per the draft, this provides something of a safety valve, whilst still contributing to decarbonisation and effectively putting a price on a portion of value chain emissions.

Offsetting

Post-2035 responsibility requirement: 1% of ongoing Scope 1, 2 and 3 emissions, increasing to 100% by the company’s net zero year (no later than 2050). The SBTi describes this as a signalled requirement, to be reviewed in the next major revision, with the mandatory element falling on Category A companies. Requirements for scaling long-duration removals are less prescriptive than in the draft.

Voluntary ‘Ongoing Emissions Responsibility’ (OER) programme with three levels: Engaged, Advanced and Leadership. The minimum “Engaged” level does not require a mandated carbon price for climate contributions (a $20/tCO2e price is recommended, not required).

Other points

Assurance requirement for independent third-party assurance across Scopes 1, 2 and 3 (not just material Scope 3 categories). Also, LCE calculations and significant EIAs, at a minimum of limited assurance, for both Category A and B, at a minimum of limited assurance. This includes data underpinning reported progress (e.g. market instruments and EACs), largely a Category A obligation. Recalculated inventories (e.g. for re-baselining) must also be assured.

Company categorisation (Categories A and B) remains unchanged from the draft. Most large and mid-sized companies in high-income countries will fall into Category A, meaning that the full suite of criteria applies. Category B companies have a smaller set of criteria to meet.

The draft required a Climate Transition Plan within 12 months of initial validation; the final requires disclosure at the time of target validation (with 15 months' flexibility). Financial costing was required in the draft; it is now only recommended. However, a new ‘Emission Intensive Activity (EIA)’ plan requirement is added, and the Climate Transition Plan is now mandatory for Category B companies (no longer optional).

To find out more about the changes, or discuss SBTi-related support, contact our team.