SBTi launches draft corporate Net-Zero Standard V2
The Science Based Targets initiative (SBTi) has released an initial draft of its revised Corporate Net-Zero Standard Version 2.0 for public consultation. This latest draft aims to accelerate corporate decarbonization by addressing key barriers to emissions reductions and providing new incentives for climate action.
Key Highlights of the Draft Standard
The revised standard is designed to enable more businesses to commit to net-zero targets while ensuring alignment with the latest climate science, regulatory requirements, and industry feedback. Some of the major updates include:
- Tackling Scope 3 Emissions Challenges: Recognizing that value chain emissions (Scope 3) are the most significant challenge for businesses, the new standard introduces flexible options such as green procurement and revenue-based targets for emissions reductions.
- Enhanced Focus on Action: The standard differentiates between Scope 1 and Scope 2 emissions to address their unique decarbonization challenges, including a proposed shift to low-carbon electricity by 2040.
- Scaling Carbon Removals and Climate Finance: Companies will have the opportunity to be formally recognized for investing in Beyond Value Chain Mitigation (BVCM) and for setting interim carbon removal targets.
- Tracking and Communicating Progress: New requirements will be introduced for assessing and reporting progress against set targets, ensuring greater transparency and accountability.
- Simplified Requirements for Emerging Markets & SMEs: Medium-sized companies in developing markets and small businesses will have access to streamlined target-setting requirements, encouraging broader corporate climate action.
Public Consultation & Transition Pathway
The public consultation for Version 2.0 of the Corporate Net-Zero Standard will be open from March 18 to June 1, 2025. Stakeholders can access the draft through the SBTi’s Consultation Guide and participate in an associated webinar to provide feedback.
To facilitate a smooth transition from the current Corporate Net-Zero Standard (V1.2) and Near-Term Criteria (V5.2), SBTi will develop a transition pathway, ensuring companies remain confident in setting targets under the existing framework while the new version is finalized.
Industry Leaders Weigh In
Francesco Starace, Chair, SBTi, emphasized the importance of stakeholder engagement in refining the standard:
“The SBTi has always been at the frontier of climate action. By addressing complex challenges and emerging issues, this draft standard lays the groundwork for companies to accelerate their journey towards net-zero. Our goal is to produce a standard that is rigorous, practical, and beneficial for both businesses and the planet.”
Alberto Carillo Pineda, Chief Technical Officer, SBTi, highlighted the significance of public consultation:
“This draft reflects insights gained from thousands of businesses, other standard setters, NGOs, policymakers, and regulators worldwide. We look forward to engaging with stakeholders to refine the standard further and maximize its impact at scale.”
Dr. Kornelis Blok, Chair, SBTi Technical Council, underscored the framework’s scientific rigor and practical application:
“The Technical Council has ensured this standard aligns with the latest research and global best practices. It will serve as a critical tool for corporates to make informed decisions and drive real change in their decarbonization efforts.”
Looking Ahead
As the corporate sector faces increasing pressure to accelerate its climate commitments, the revised Corporate Net-Zero Standard aims to remove obstacles, encourage ambition, and promote transparency in emissions reductions. Businesses, policymakers, and other stakeholders are encouraged to participate in the consultation process and contribute to shaping the future of corporate net-zero action.
Download Our Free Magazine
Get Industry Insights, Trends & Latest Innovations in the Textile & Apparel Industry
