SBTI says new standard will turn promises into action

The Science Based Targets initiative has launched a major update to its corporate net zero standard, with a sharper focus on turning climate promises into real emissions cuts.

Corporate Net-Zero Standard Version 2.0 will take effect from 1 February 2027, giving companies a new framework for setting, implementing and reporting science-based climate targets.

SBTi says the update reflects more than 10 years of experience, wide consultation and pilot testing with companies trying to align their businesses with climate science.

The organisation now has more than 11,000 companies with validated targets worldwide but Francesco Starace, Chair of SBTi, said the main lesson from the past decade is that ambition alone is not enough. “Commitment is not the hardest part. Delivery is.”

Version 2.0 is designed to move companies beyond headline net zero claims and into the practical decisions that determine whether emissions actually fall, from capital allocation and technology investment to procurement, supplier engagement and the management of long-lived assets.

SBTi wants the standard to sit inside core business decision-making, shaping the work of boards, Chief Financial Officers, operations teams and procurement departments rather than existing as a separate sustainability exercise.

The update also recognises that companies do not control every part of their carbon footprint, especially scope 3 emissions across supply chains and the use of sold products.

Under the new framework, companies will be expected to use every lever within their control, act on a best-efforts basis and be transparent about the barriers limiting progress.

That is not intended to weaken the standard, as companies will still need science-based targets, implementation plans, progress reporting and stronger accountability over time – but the new version puts more emphasis on how companies actually deliver change across messy, complex and shared systems.

The standard sets out a clearer hierarchy for action, with companies expected to prioritise direct emissions cuts within their own operations and value chains before supporting action in wider systems such as electricity grids, logistics networks and supply chains.

Market instruments, including energy and commodity certificates, may be used where they meet integrity requirements.

SBTi has also introduced a voluntary Ongoing Emissions Responsibility programme for companies that want to go further by supporting climate finance and wider system change, while making clear this cannot replace cutting their own emissions.

The new standard changes how companies set and track targets, with near-term targets required and overarching net zero targets available for businesses that choose to set them.

Large companies will face stronger expectations around transition plans, target base year assurance and scope 3 targets.

Companies with existing 2030 targets are expected to start setting their next cycle of targets for 2030 to 2035 from 2028, while Version 1 of the standard will remain open for target setting until the end of 2027.