The Science Based Targets initiative (SBTi) has published a revamped version of its Corporate Net-Zero Standard, focusing on creating a more customizable framework that addresses the needs of different business contexts.
Version 2.0 of the standard introduces a range of target-setting options designed to maintain a science-based approach while offering flexibility for a variety of business situations. The standard was designed to offer practical and accessible guidance for companies at every stage of net-zero transition.
“We are at a critical moment for climate action: companies have told us that they need a partner that can help foster implementation and that’s what the Corporate Net-Zero Standard Version 2.0 is designed to do,” said David Kennedy, CEO of SBTi.
The updated Corporate Net-Zero Standard focuses on implementation, emphasizing that setting targets is the first step of a company’s net-zero journey. This expanded focus on implementation includes enhanced transparency about reporting progress and continuous improvement, while reinforcing action and encouraging companies to be more ambitious as they advance toward their net-zero goals.
“The next phase of corporate climate action requires standards that combine scientific rigor with practical application,” said Dr Kornelis Blok, chair of SBTi’s independent technical council. “By strengthening the link between target setting, implementation, and continuous improvement, the Corporate Net-Zero Standard V2.0 provides a robust framework to support more consistent and measurable progress toward net-zero in line with science.”
The new standard encourages companies to prioritize direct emissions reductions across operations and value chains, while at the same time adjusting systems within their operation where direct decarbonization isn’t possible. And it recognizes companies for “best efforts”—emphasizing that while ambitious climate targets can lead to significant change, factors outside a company’s control can affect progress. As long as companies use all available tools to work toward targets, they can remain within the SBTi framework.
“Decarbonization across operations and value chains requires new approaches, stronger collaboration, and better tools for decision-making,” said Francesco Starace, chair of the SBTi board of trustees. “By reflecting a decade of learning, the Standard will help companies open their door to the benefits of decarbonization: embedding climate action into core business strategy, managing their transition risks, and strengthening long-term competitiveness in a rapidly changing global economy.”
Version 2.0 of the Corporate Net-Zero Standard also rewards companies for their progress, incorporating a voluntary recognition mechanism to encourage participants to take action to address both short-term emissions goals, as well as longer-term requirements.
The standard, which was first introduced in 2021 builds on SBTi’s work with more than 11,000 companies—such as MAS Holdings, Elevate Textiles, Sapphire Mills and YKK—to set science-based targets to achieve net-zero by 2050. The updated standard was developed with input from two rounds of public consultation, pilot testing and feedback from expert working groups, as well as approval by SBTi’s independent technical council and board of trustees.
“Businesses now have a great opportunity to manage their transition risk and strengthen resilience in a fast-changing world,” Kennedy said. “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.”
