Rethinking Net Zero: SBTi Closes Consultation and Looks Ahead

The public consultation period on the Science Based Targets initiative (SBTi)’s revised Corporate Net Zero Standard has officially closed. Now, all eyes are on what the initiative will make of the feedback and how it will shape the next era of climate accountability.

The SBTi is widely considered the global benchmark for corporate climate target-setting. Its seal of approval signals that a company’s emissions reduction plans are not only ambitious, but also aligned with science. Now, as climate action becomes more scrutinized, and greenwashing risks grow, SBTi is raising the bar.

In February, the initiative released the draft of its Corporate Net Zero Standard 2.0, aiming to introduce a more rigorous, consistent framework for companies to set and implement long-term decarbonization goals. The revisions reflect a clear shift: from “setting targets” to proving progress.

What’s Changing?

The draft version of Net Zero Standard 2.0 includes several key updates:

• Stronger Target Architecture: Companies must set a short-term (5–10 year) target aligned with 1.5°C, a long-term target to cut >90% of emissions by 2050, and remove what can't be reduced through verified carbon removal efforts.

  
  

• Progress Reporting Becomes Mandatory: Rather than simply setting and forgetting targets, companies will now be required to track and publicly report progress at the end of their target period, thereby closing loopholes and boosting transparency.

  
  

• Stricter Baseline Requirements: Enhanced rules for base year selection and performance tracking mean that companies will need more robust data, and in some cases, third-party assurance.

  
  

• A Smarter Scope 3 Approach: Scope 3 emissions often account for the bulk of a company’s footprint but are the hardest to tackle. The new standard moves away from rigid, fixed-percentage requirements, and toward a materiality-based approach that prioritizes high-impact categories.

  
  

• Interim Carbon Removal Targets: A new provision allows for the inclusion of interim targets for carbon removals, helping standardize how residual emissions are addressed along the way.

  
  

• Recognition of Beyond Value Chain Mitigation (BVCM): Companies will now receive formal recognition for climate finance efforts that go beyond their own operations, such as investing in carbon removal projects or mitigation in their supply chains.

  
  

• Easier Pathways for SMEs and Developing Countries: The draft includes simplified requirements for smaller companies and those operating in emerging economies.

What’s Next? 

The revised standard is expected to be finalized by early 2026 and fully adopted by 2027. Targets validated under Version 1.2 in 2025–2026 will remain valid for five years or until the end of 2030, whichever comes first.

Therefore, if your company already has validated targets, do not fear! SBTi will provide transition pathways to help align with the new standard over time.

The Bottom Line

SBTi is doubling down on credibility, and this revision will likely raise the bar for corporate climate leadership. While the requirements may be tougher, they also offer a clearer and more consistent path to net zero, one that the planet urgently needs, and both businesses and consumers can trust.