SBTi 2.0: The New Standard for Corporate Net Zero Strategy

The new Science Based Targets initiative (SBTi) standard provides businesses with multiple target-setting options to advance climate action.

According to SBTi, the Corporate Net-Zero Standard Version 2.0 moves beyond a one-size-fits-all approach and establishes SBTi as a strategic partner in corporate decarbonisation.

Founded in 2015 by CDP, the United Nations Global Compact, World Resources Institute and WWF, SBTi helps companies align their decarbonisation plans with what climate science demands. 

It provides frameworks and validation for corporate net zero targets that are consistent with the 2015 Paris Agreement on climate change.

What's new in Version 2.0

Previously, businesses used SBTi standards to set long-term, science-based decarbonisation goals. The updated standards now support practical, emissions-cutting initiatives tailored to each company’s specific context.

“Businesses now have a great opportunity to manage their transition risk and strengthen resilience in a fast-changing world,” says David Kennedy, CEO at SBTi.

“The Standard provides a framework to achieve this in practice across a wide range of contexts, through aligning climate science with actions that they can and should take to transform their businesses.

“Those that use it will gain competitive advantage while contributing to international climate objectives.”

Focus on what you can control

The new standards prioritise direct emissions reduction across operations and value chains, as well as support implementation. Companies are expected to focus on those emissions over which they have the greatest control and which will deliver the greatest impact. 

“The standard introduces three options for setting near-term Scope 3 targets: overarching emissions reduction targets, overarching supplier/customer alignment targets, and category- or activity-specific targets, so companies can also use the coming months to identify which option is appropriate for them,” SBTi explains.

SBTi says the revised standard is designed to help more companies take credible, science-based climate action that delivers real business value and measurable emissions reductions.

It has been informed by public consultations, pilot testing and expert working groups, and responds to feedback from businesses seeking more practical guidance.

“It is more streamlined and clearer to navigate, while maintaining scientific rigour and ambition,” says an SBTi spokesperson.

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Creating flexibility in the face of the unknown

The standard also introduces a voluntary recognition mechanism to encourage companies to take short-term action to reduce emissions.

It recognises that companies may face unexpected business impacts affecting sustainability efforts. As long as they act in good faith and transparently, they may remain within the SBTi framework even if targets are missed. This approach aims to encourage more ambitious emissions reduction targets.

The spokesperson for SBTi explains that the flexibility introduced in the new standard is not lowering the bar for companies but provides them with guidelines to make credible claims about progress toward net zero and avoid greenwashing risk.

“Decarbonisation across operations and value chains requires new approaches, stronger collaboration and better tools for decision-making,” says Francesco Starace, Chair of the Board of Trustees at SBTi.

“By reflecting a decade of learning, the Standard will help companies open their door to the benefits of decarbonisation: embedding climate action into core business strategy, managing their transition risks, and strengthening long-term competitiveness in a rapidly changing global economy.”

Meaningful progression

The updated Standard builds on a decade of experience supporting more than 11,000 companies in setting science-based targets and reinforces the SBTi’s evolving role in helping companies translate ambition into credible action and accelerate progress toward net zero by 2050 at the latest.

“The revised net zero standard marks a meaningful progression and has the potential to drive real impact across the global economy,” says Kirsten Schuijt, WWF Director General.

“The adoption of the new standard will not be straightforward, but with the right guidance and support, it can help businesses move faster from ambition to delivery and drive the scale of change urgently needed.”