The Science Based Targets initiative (SBTi) has published its Corporate Net-Zero Standard Version 2.0. The updated framework signals a strategic transition for the organisation from a focus on target-setting validation towards acting as an operational implementation partner for corporate climate action.
The revised standard modifies the criteria for how international corporations manage, track, and report their greenhouse gas emissions across their operations and value chains, moving away from a uniform framework to accommodate varying industrial contexts.
The updated framework introduces several operational changes designed to align climate science with practical business management:
- Implementation hierarchy: The standard requires companies to prioritise direct internal emissions reductions across their core operations and supply chains before deploying secondary interventions to alter systemic market dependencies where direct abatement remains unfeasible.
- Best-efforts target management: The framework explicitly acknowledges that variables outside a corporation’s direct operational control can obstruct emissions reduction trajectories. Under Version 2.0, companies facing external barriers will remain compliant within the SBTi framework provided they maintain transparency regarding implementation obstacles, deploy available mitigation levers, and document corrective actions.
- Ongoing emissions liability: A voluntary recognition mechanism has been introduced to incentivize short-term mitigation of ongoing emissions. For larger corporations, the standard establishes a long-term requirement to take progressive financial or operational responsibility for these residual emissions.
- Transparency metrics: The standard elevates disclosure requirements, mandating continuous reporting of progress and active target adjustments as corporations advance toward net-zero benchmarks.
The updated guidelines will apply to companies with existing validated targets and those currently compiling or renewing disclosures under the previous Version 1.3 framework.
The publication follows a decade of data collection involving more than 11,000 participating corporations. The development of Version 2.0 involved two rounds of global public consultation, technical pilot testing, and formal reviews by specialized working groups. The final text secured technical approval from the SBTi’s independent Technical Council before its formal adoption by the Board of Trustees.
David Kennedy, Chief Executive Officer at the SBTi said, “We are at a critical moment for climate action: companies have told us that they need a partner that can help foster implementation and that’s what the Corporate Net-Zero Standard Version 2.0 is designed to do. The Standard provides a framework to achieve this in practice, aligning climate science with actions businesses should take to transform their operations.”
Francesco Starace, Chair of the Board of Trustees at the SBTi, stated, “When the SBTi was founded over a decade ago, the aim was simple: help companies set targets to reduce their emissions in line with climate science. In the decade since, companies have recognised that ambition alone is not enough—delivery is paramount. The Standard will help companies embed climate action into core business strategy, manage transition risks, and strengthen long-term competitiveness.”
Dr Kornelis Blok, Chair of the SBTi’s independent Technical Council, added, “The next phase of corporate climate action requires standards that combine scientific rigour with practical application. By strengthening the link between target setting, implementation, and continuous improvement, the Corporate Net-Zero Standard V2.0 provides a robust framework to support more consistent and measurable progress toward net-zero.”
