SBTi releases final Corporate Net-Zero Standard 2.0

The Science Based Targets initiative (SBTi) has released the final version of its Corporate Net-Zero Standard 2.0, introducing significant changes for organisations that have adopted science-based targets through the SBTi framework.

While science-based target setting remains at the core of the framework, the revised standard places greater weight on how targets are delivered, tracked, and communicated. It also introduces a 'best-efforts' approach, recognising that external factors may affect progress while still encouraging organisations to take meaningful action towards their emissions reduction goals.

Key changes in the revised standard

Requirements now vary depending on company size and national context

• New Category A and Category B classifications: Different obligations now apply based on company size and national context. For example, Category A represents large companies from all countries and medium-sized companies from high-income countries.
• Mandatory near-term emissions targets: Organisations covered by the framework are expected to set near-term (5-year) Scope 1 and Scope 2 targets.
• Additional obligations for larger organisations: Category A organisations must also set near-term Scope 3 targets.
• Greater accountability and transparency: Category A organisations are required to disclose transition plans and obtain limited assurance over target base-year emissions data.

More flexibility in target setting

• Multiple target-setting pathways: The revised standard introduces multiple pathways for addressing both operational and value-chain emissions, allowing organisations to adopt approaches that better reflect their circumstances.
• Broader Scope 2 options: Organisations can reduce Scope 2 emissions through a combination of emissions reduction targets, increased use of low-carbon electricity and a range of renewable electricity procurement approaches.
• Greater focus on material emissions sources: Organisations can prioritise the areas of their supply chain that contribute most significantly to their emissions profile and where they have the greatest ability to drive change.
• Limited flexibility for exclusions: Companies may be able to exclude some Scope 3 emissions sources where they are not material or where the company has limited ability to influence outcomes.

Greater focus on implementation

• Greater focus on reducing emissions at source: The standard prioritises direct emissions reduction activities before other interventions.
• Introduction of a best-efforts approach: Organisations are expected to make genuine progress towards their targets and be transparent about implementation barriers where they arise.
• Greater emphasis on transition planning: Organisations are expected to demonstrate how emissions reductions will be achieved, governed and monitored over time.
• Increased focus on continuous improvement: Organisations are expected to regularly assess progress and strengthen their decarbonisation as circumstances and technologies change over time.

Increased expectations for residual emissions

• New framework for addressing ongoing emissions: The Ongoing Emissions Responsibility (OER) framework recognises organisations that voluntarily support emissions reductions and removals while working to reduce their own emissions.
• Growing role for carbon removals and residual emissions: Category A companies will eventually be required to support carbon removals, with increasing attention on how residual emissions are addressed as organisations approach their net-zero target year.

What organisations should take from this?

One of the more important aspects of the revised standard is its recognition that decarbonisation does not always follow a linear path. The introduction of a best-efforts approach acknowledges that many organisations face challenges outside their direct control while still encouraging meaningful progress towards emissions-reduction goals.

With increased expectations around implementation, transparency, and ongoing emissions responsibility, the revised standard reflects a wider change in how organisations approach net-zero target setting, emphasising progress and accountability rather than target setting alone.

Organisations will be able to submit targets under the new framework from early 2027. In the meantime, organisations can continue to use the current standard while assessing the implications of the updated requirements and preparing for the transition. For organisations with existing science-based targets, understanding these changes early may make the transition smoother and help identify areas where additional planning, governance or reporting capability may be required.

How BDO can help

The new Corporate Net-Zero Standard Version 2.0 introduces new considerations around target setting, implementation, transparency and ongoing emissions responsibility. Our sustainability experts can help you understand the implications of the revised requirements, assess your readiness for the transition, and evaluate how your existing climate commitments align with this new framework.