The Science Based Targets initiative (SBTi) published a draft of Version 2 of its Corporate Net-Zero Standard for public consultation in 2025 — the first major revision of the standard since it launched in 2021. As of this writing the standard is still in development, with consultation and piloting feeding a finalisation expected over the following one to two years. Nothing in the draft is yet binding. But the direction of travel is unambiguous, and companies setting or revalidating targets should design with V2 in mind rather than be surprised by it.
Why a Version 2 at all
Version 1 established the now-familiar architecture: near-term and long-term targets, roughly 90% absolute emissions reduction by 2050, and neutralisation of only the small residual with permanent removals. In practice it drew consistent criticism on a few fronts — the feasibility of blanket Scope 3 coverage, the quality and accuracy of underlying data, the treatment of carbon removals, and weak accountability for actual progress between target-setting and the target year. V2 is SBTi's attempt to answer those critiques without abandoning scientific rigour.
The proposed changes that matter most
- Company categories: a proposed split between larger / higher-capacity companies (stricter requirements) and SMEs or companies in lower-income economies (streamlined requirements), so the burden scales with capability.
- A rethink of Scope 3: moving away from a single blanket coverage percentage toward targeting the most material categories, combined with additional 'alignment' levers — for example, the share of suppliers with their own validated targets, or the share of revenue/procurement aligned to net zero — recognising that not all value-chain emissions are equally within a company's control.
- Carbon removals: clearer expectations on addressing ongoing emissions over time and a more defined role for removals and beyond-value-chain mitigation — while keeping absolute reduction as the primary obligation.
- Data and progress: a higher bar on data accuracy, base-year discipline and ongoing disclosure, so targets are tracked and recalculated rather than set and forgotten.
What is not changing
The fundamentals hold. Targets remain anchored to climate science and a roughly 1.5°C trajectory. Absolute emissions reduction stays primary. Offsets still do not count toward reduction targets — removals play a role only in neutralising the residual at the net-zero point. If your strategy already treats reduction as the work and removals as the residual, V2 does not undermine it.
How to prepare now
- Keep strengthening a complete, accurate GHG inventory — V2 raises the data bar, and good data is the precondition for everything.
- Deepen Scope 3 data quality on your most material categories, and begin or expand supplier engagement.
- Do not rush to revalidate against a draft that may still change — but design target architecture that will survive the transition rather than only satisfying V1.
- Treat removals strictly as a residual-emissions tool, and keep credits out of your reduction accounting.
Bottom line
V2 is evolution, not reversal. It makes the standard more workable on Scope 3 and more demanding on data and honesty about progress. The companies that fare best will be those whose inventories and Scope 3 programmes are already strong — because the revision rewards substance over the appearance of ambition. Treat the current draft as a signpost, build the data foundation now, and validate when the final standard lands.
Because V2 is an evolving draft, always check the current status and requirements directly with SBTi before making target commitments.
Sources & further reading
This article is general information, not legal, financial or compliance advice. The regulations and standards referenced here evolve; verify the current position with the issuing body, or ask us. Published June 2026.