The Science Based Targets initiative (SBTi) has published v2.0 of its Corporate Net Zero Standard, the first major overhaul since launching the framework in 2021. In the first of two posts exploring the impact and detail of the changes, TBL’s Head of Technical Delivery, Danny Crewe, looks at what the changes mean for you if you’re planning on setting or renewing targets.
Want to understand the technical detail of what’s changed? Go to part two of Danny’s post, here.
Following an extensive consultation period and two draft standards, the final version of the new Corporate Net Zero Standard reflects the recently publicised shift in how the SBTi sees its role: moving focus from climate ambition to action. The goal is still very much the same: helping companies to set emissions targets that help them reach net zero by 2050. But it now has more to say about implementation, transition planning, and progress assessment as well.
That being said, while the SBTi remains the gold standard in corporate target setting, the changes also reflect an initiative clearly feeling the tension between pushing for hard and fast emissions reductions, and the reality of what this means for many organisations. While some areas have been significantly tightened (notably Scope 2 requirements), others see a much more pragmatic approach reflecting the operational barriers faced by companies.
The new standard also finds itself advocating for an approach to carbon accounting that is, in some ways, ahead of schedule when compared to the development of key standards setters GHG Protocol and ISO. As with previous developments around the FLAG target standard, this may prove uncomfortable for companies caught between wanting to demonstrate progress and being unsure how to do so while staying compliant.
I’m thinking about setting a science-based target – what does this mean for me?
For now, companies still have a window of choice.
Until Q1 2027, SBTi is only accepting applications for validation against v1.3.1 – the current (or old, depending on when you’re reading this) standard. Both the v1.3.1 and v2.0 standards will be valid for a one year transition period starting in Q1 of 2027. The v2.0 standard will become mandatory from 1 February 2028 onwards.
In practical terms, delaying a potential target application for six months may not be feasible or desirable. The significant differences in the standards do mean that some forward planning is required, and would-be target setters should begin to familiarise themselves with the new criteria.
My existing SBT is due for renewal or revalidation – which standard do I need to use?
This is dependent on timing.
Companies updating or renewing targets in 2026 or 2027 can continue to use v1.3.1 during the transition period. Companies planning target submissions or renewals from 2028 onward should expect to use v2.0.
Remaining with the v1.3.1 standard may offer business continuity, lower immediate complexity and an already-understood target structure. Moving earlier to the new standard may send a stronger market signal and/or simplify the target reporting.
Companies should also consider whether any methodological changes may lead to a mandatory restatement of target base year emissions post-2028. As a ‘target revalidation event’ this could potentially result in a messy exercise of mapping an old target to the new framework.
Technical updates in the new standard – what’s changed?
From transition plans and net-zero target setting to separating Scope 1 and 2 targets and refining Scope 3 boundary changes, there are lots of changes between v1.3.1 and new standard.
We explore them in part two of our post on the new standard, here.
Do you have questions about what the changes mean for you?
