Explained: The Changes to SBTi’s Corporate Net Zero Standard

The Science Based Targets initiative (SBTi) has released a draft version of its updated Corporate Net Zero Standard.

The organisation announced in February 2025 that it would be revising this particular standard, in order to give companies a clearer pathway to decarbonisation.

The SBTi also stated its intention to consult with business leaders and key stakeholders on these changes.

"Reaching net zero is never going to be straightforward. But the guidance to get businesses there should be,” Tracy Wyman, Chief Impact Officer at the SBTi, said at the time.

This draft follows on from the first set of consultations, and whilst nothing will be finalised until June 2025, the new Corporate Net Zero Standard is beginning to take shape.

Why does the SBTi want to revise its standards?

In essence, the SBTi hopes that these revisions will make corporate climate commitments more effective and actionable.

The proposed changes focus on addressing barriers to value chain emissions reductions, scaling climate finance and simplifying requirements for businesses in developing economies.

The draft standard in particular is designed to help more companies (alongside the 3,000 businesses that have already lodged commitments with the SBTi) set and achieve net zero targets.

By incorporating the latest climate science, regulatory updates and stakeholder feedback, the SBTi is aiming to provide a robust framework that can align with global sustainability goals.

Addressing the challenges in Scope 3 emissions

Scope 3 emissions, which encompass the indirect emissions from a company’s value chain, remain a significant challenge for businesses.

More than half of the companies surveyed by SBTi identified this as their biggest obstacle in setting net zero targets.

The draft standard introduces increased flexibility in tackling these emissions by allowing companies to set targets for green procurement and revenue generation rather than solely focusing on absolute emissions reductions.

By directing action towards the most emissions-intensive activities and key suppliers, the proposed approach aims to maximise impact where businesses have the greatest influence.

This move acknowledges the complexity of decarbonising entire supply chains while still maintaining the standard’s rigour.

Carbon removals and climate finance

Another key proposal is the recognition of corporate investment in Beyond Value Chain Mitigation (BVCM).

This includes options for companies to receive formal recognition for funding carbon removals and other climate finance initiatives beyond their direct emissions reduction obligations.

The draft standard also introduces interim carbon removal targets, providing businesses with a structured approach to addressing residual emissions.

This marks a shift towards integrating climate finance into corporate decarbonisation strategies without diverting focus from direct emissions reductions.

Changes to accountability

To reinforce corporate accountability, the revised standard includes a requirement for businesses to assess and communicate progress against their targets.

This new reporting framework is designed to enhance transparency, enabling stakeholders to evaluate companies' progress more effectively and incentivising continued action.

“The SBTi has always been at the frontier of climate action,” says Francesco Starace, Chair of SBTi.

“The draft standard addresses complex, emerging issues and lays the foundation to enable more companies to move further and faster towards net zero.”

Easing participation for businesses in emerging markets

Recognising that businesses in developing economies and small to medium-sized enterprises (SMEs) often face unique challenges in setting net zero targets, the draft standard proposes simplified requirements tailored to their capabilities and resources.

By reducing barriers to participation, SBTi aims to encourage broader corporate engagement in climate action.

“The draft standard reflects lessons drawn from thousands of businesses worldwide,” says Alberto Carillo Pineda, Chief Technical Officer at SBTi.

“The public consultation will help us identify the changes we can make to ensure SBTi’s revised standard creates impact at scale as effectively as possible.”

Next steps in the consultation process

The public consultation period runs from 18 March to 1 June 2025.

During this time, businesses, policymakers and other stakeholders are encouraged to provide feedback on the proposed revisions.

Input from this process, alongside insights from expert working groups and pilot testing, will shape the final version of the standard.

Dr Kornelis Blok, Chair of the SBTi Technical Council, reinforces the standard’s scientific foundation. 

“This draft standard serves as a comprehensive framework that aligns with the latest scientific research and global best practices,” he explains.

“The Technical Council’s rigorous review process ensures that this standard is not only robust but practical.”

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