What is the SBTi Corporate Net-Zero Standard?

The SBTi Corporate Net-Zero Standard is the global framework for how companies set science-based climate targets—that is, targets that are in line with what climate science requires to limit global warming to 1.5°C.

To date, more than 11,000 companies worldwide have set targets under the SBTi framework. Version 2.0 is a direct response to ten years of experience, consultations, and pilot tests, and represents one of the most important climate policy documents for the business community in 2026.

The most important new features in version 2.0

1. From ambition to action – a new hierarchy of measures

Perhaps the most significant change in v2.0 is that the standard shifts from merely setting goals to actively supporting their implementation. A clear implementation hierarchy is introduced:

1. Direct measures – reduce emissions directly within our own operations and supply chain (efficiency improvements, fuel switching, supplier dialogue)
2. System measures – taking action within shared systems, such as electricity or gas grids, through market mechanisms with a high degree of integrity
3. Sector-specific measures – as a last resort, once all other options have been exhausted, cross-sectoral measures may be taken

This means that market mechanisms, such as guarantees of origin, will play a more prominent role in the standard.

2. Two categories of companies: Category A and B

Version 2.0 introduces a formal classification of companies into Category A and Category B, based on size and geographic location:

This is one of the most concrete changes: SMEs and companies in low-income countries will benefit from relaxed requirements without having to leave the framework.

3. Ongoing Emissions Responsibility

Version 2.0 introduces a framework for companies that wish to take responsibility for their residual emissions, in addition to their mandatory efforts to reduce emissions.

• The target level is flexible: 1–100% of current emissions
• Approved measures: carbon offsetting carbon credits (short-term and long-term), carbon capture and storage (CCS), climate adaptation

Starting in 2035, this will be mandatory for all companies —while the requirement to offset residual emissions by the time net-zero is achieved remains in place.

4. New options for Scope 1 targets

Previously, the standard essentially required absolute emissions reductions. Version 2.0 now offers three options:

• Absolute emissions reduction – a straight line of decline from the baseline year toward net-zero by 2050
• Sector-specific reduction – for sectors with sector-specific decarbonization pathways (e.g., steel, cement, chemicals)
• Targets based on the asset lifecycle – for companies with fixed assets that have a long useful life and are phased out according to a carbon budget

All three paths lead to net-zero by 2050 at the latest.

5. Updated rules for Scope 2 — electricity source and time limit

Scope 2 targets focus on the transition to fossil-free electricity generation. News includes:

• Contracts with power plants up to 15 years old are permitted (to accommodate commercial financing cycles)
• Power purchase agreements (PPAs) may be longer if the power plant is less than 36 months old
• Existing contracts do not need to be renegotiated
• Large-scale electricity consumers must report the proportion of electricity matched with fossil-free generation on an hourly basis (hourly matching)
• Time-based matching enables voluntary SBTi certification

6. More flexible Scope 3 targets

Scope 3—indirect emissions in the value chain—is often the most difficult to address. Version 2.0 provides more flexibility:

Permitted exceptions to Scope 3 targets:

• Categories, each of which accounts for less than 5% of total Scope 3 emissions
• Category 3 (energy-related activities), if these are already covered by Scope 1 or 2
• Activities over which the company has no practical influence (e.g., leased assets without operational control)

7. Continuous monitoring replaces one-time validation

In Version 1, goals were validated, and after that, it was largely up to the company to follow up. Version 2.0 introduces an ongoing follow-up framework:

• Annual reporting and regular assessment of progress
• Clear requirements for addressing and communicating barriers to implementation
• The next goal cycle is set before the previous one is completed
• High emission levels in the target year will lead to stricter requirements in the next cycle

This means that the SBTi acts more as a transition partner rather than merely a certification body.

8. Requirement for a transition plan for all companies

All companies that set targets under v2.0 must have a climate transition plan that:

• Describe specific measures to achieve the goals
• Identifies dependencies and obstacles
• Describes the path to net-zero at a high level

For Category A companies, the transition plan must be made public at the time of validation (with the option to delay publication for up to 15 months).

What applies to companies that already have targets?

• Version 1 will remain open for goal-setting through the end of 2027
• Companies with 2030 targets should begin setting their next target cycle (2030–2035) in 2028
• Some parts of version 2.0 (such as categorization and the implementation framework) can already be applied in version 1

Would you like to know how this affects your organization?

ZeroMission companies navigate the SBTi framework—from baseline measurement and goal-setting to implementation and reporting. Contact us for an open discussion about what Version 2.0 means for your organization.

Source: Science Based Targets , Corporate Net-Zero Standard Version 2.0, June 2026.