SBTi’s Corporate Net-Zero Standard V2.0 introduces a more practical—and more demanding—logic for corporate climate action. The central shift is from validating a target once to managing it continuously through five-year cycles.
THE CONCLUSION IN ONE SENTENCE
A credible net-zero target must now be supported by governance, capital allocation, procurement, supplier engagement, evidence and disciplined external claims.
WHAT COMPANIES NEED TO KNOW
1. Climate targets become a governance responsibility
Boards or equivalent governing bodies are expected to oversee target-setting, submission and implementation. A target can no longer sit only with the sustainability team: capital expenditure, procurement rules, business-unit accountability and internal reporting must support the same pathway.
2. Scope 1 and Scope 2 require more than a reduction curve
For Scope 1, companies may use absolute reduction, sector-aligned intensity or asset-transition approaches, depending on their business model. For Scope 2, the quality of low-carbon electricity matters—including deliverability, generating-asset age and, for large electricity users, increasing transparency on hourly matching.
3. Scope 3 moves toward multiple levers
Companies may combine absolute reductions with supplier or customer alignment and activity-specific methods. This gives companies more ways to demonstrate progress, but it does not remove the need to calculate Scope 3 emissions or govern material high-emitting activities.
4. Implementation and claims face tighter boundaries
Direct action within operations and value chains remains the priority. Activity-pool or sector-level instruments are relevant where technical or market constraints prevent direct action, but they must not be presented as reductions in a company’s physical emissions inventory. Companies will need to distinguish clearly among inventory reductions, value-chain alignment and wider system contributions.
THE TIMELINE
V2.0 was published on 11 June 2026 and takes effect on 1 February 2027. During the 2027 transition period, companies may continue to use V1.3.1 until 31 January 2028. From 1 February 2028, all new target submissions must follow V2.0.
WHAT COMPANIES SHOULD DO NOW
• Confirm whether the company falls into Category A or Category B.
• Map board oversight, accountable executives and decision rights.
• Link emissions actions to budgets, owners, milestones and evidence.
• Review electricity contracts for location, generation source and data availability.
• Identify material Scope 3 activities and the suppliers or customers that must be engaged.
• Review sustainability reports, customer questionnaires and marketing claims for evidence gaps.
THE SSBTi VIEW
Setting a carbon-neutrality target is far easier than delivering one. V2.0 acknowledges this real-world friction. It also recognises that not every valuable climate action appears immediately as a reduction in a Scope 1, 2 or 3 inventory.
The new question is broader and more useful: even where inventory emissions have not yet fallen, are the suppliers, customers, products, electricity systems, logistics networks and industry structures that a company controls or influences moving toward net zero?
This gives companies a clearer channel for credible transition claims—while reducing the space for unsupported promotion.
FURTHER READING | FULL ANALYSIS
Our complete Digest analysis examines governance, Scope 1–3, electricity procurement, activity pools, implementation hierarchy, claims risk and a practical 30/90/180-day preparation pathway:
SBTi V2.0: Governance, Power, Supply Chains and Claims
SOURCES AND IMPORTANT NOTICE
• Science Based Targets initiative: Corporate Net-Zero Standard Version 2.0
https://sciencebasedtargets.org/corporate-net-zero-standard-v2
• SBTi: Introducing the Corporate Net-Zero Standard Version 2.0
https://sciencebasedtargets.org/blog/introducing-the-sbti-corporate-net-zero-standard-version-2-0
Editorial cut-off: 21 July 2026. This brief is based on SBTi materials available on that date. Supporting methodologies, assurance requirements and claims guidance may continue to evolve. Companies should rely on the latest effective SBTi documents, applicable sector standards and validation-body requirements when making submission or compliance decisions.