What’s next for net-zero: an updated draft of the Corporate Net-Zero Standard V2
Nov 6th 2025
The Science Based Targets initiative (SBTi) has released a revised draft of the Corporate Net-Zero Standard V2 for a second public consultation—the next step in the revision process for SBTi’s flagship Standard.
This updated draft draws on insights from the first public consultation, expert working groups, and further research. The result is a stronger, more inclusive Standard, designed to help companies worldwide translate climate science into practical action. It provides tools businesses need to manage net-zero transition risks and opportunities effectively, and to remain competitive in an increasingly carbon-constrained world.
Turning science into practical action
The updated draft Corporate Net-Zero Standard makes climate science more accessible and actionable, empowering more companies to set ambitious, science-based targets and deliver measurable progress. It maintains focus on direct decarbonization, while improving clarity and usability, so that businesses can confidently turn ambition into credible action.
Built for the real world
The revised draft features a simpler, more streamlined structure and innovative approach, reflecting the operational realities of different sectors and geographies, while driving alignment with global climate goals. It brings together scientific integrity and practical application, making net-zero target setting easier to understand, apply, and scale.
It also introduces a wider range of science-based options that reflect the span of levers that companies have in different contexts, enabling them to focus on priority emissions sources where they can have the greatest impact.
Our goal is to deliver a Standard that maintains scientific ambition while being more inclusive, actionable, and adaptable, helping companies build resilience, strengthen investor confidence, and unlock long-term growth.
Net-zero as the north star
Embedding net-zero ambition into corporate strategy and operations is the foundation of credible climate action. It demonstrates leadership and accountability toward global climate goals.
The updated draft Standard maintains the requirement for companies to align their near-term actions, in their operations and value chain, with the long-term climate objective of reaching net-zero by 2050 at the latest.
Category A companies (i.e., large companies in all countries and medium-sized companies in high-income countries) are required to publish credible transition plans, outlining the roadmap of actions to substantiate their net-zero ambition.
Below, we highlight how the requirements to embed this ambition have been updated between the first and second public consultation drafts.
| Topic | First Consultation Draft | Updated Draft | Summary of Change |
| Ambition | Companies shall publicly commit to reaching net-zero greenhouse gas emissions by no later than 2050. | Companies shall set an ambition to transition their operations and value chains to align with the goal to be net-zero by no later than 2050. | The requirement is unchanged. What’s changed is the wording, to avoid confusion between ‘commitment’, which in SBTi terms has a very specific meaning associated with the language used as part of the target-setting process, and what’s intended here, which is the company's overarching intention to reach net-zero by 2050. |
| Transition plan | The decision on whether companies are required or recommended to publish a climate transition plan within 12 months from initial validation was under public consultation. | Category A companies are required to disclose a transition plan within 12 months of initial validation. | Moved from an open question to a requirement. |
Scope-specific target approach
The revised draft introduces a scope-specific target approach to enhance integrity and actionability. This means tailored target-setting requirements for each scope—including maintaining separate requirements for scope 1 and 2—to better reflect the unique challenges and decarbonization levers companies have in different contexts, allowing them to focus on priority emissions sources where they can have the most impact.
Scope 1 targets
Addressing direct operational emissions remains a key decarbonization priority for the coming decade. The revised draft Standard introduces dedicated scope 1 target-setting requirements and more granular pathways, enabling companies to use metrics and benchmarks that better reflect their activities and priority emission sources. Learn more about the key proposed updates in our explanatory paper Deep dive: Evolving approaches to address scope 1 emissions.
Building on consultation feedback and further research, the second draft Standard includes three approaches for setting scope 1 ambition: reducing emissions on a linear pathway to net-zero; increasing the share of low-carbon activities over time; and implementing Asset Decarbonization Plans to decarbonize assets based on technological readiness, while maintaining science-based ambition.
| Topic | First Consultation Draft | Updated Draft | Summary of Change |
| Interoperability | Sector-specific methods and pathways partially incorporated in the draft Standard. | Full integration of existing pathways. | We’ve moved from partial to full integration of sector-specific pathways to clarify how the Corporate Net-Zero Standard relates to other SBTi Standards, and make it easier to use alongside other relevant frameworks, standards, and regulations. Read How to use the SBTi Corporate Net-Zero Standard Version 2 alongside other SBTi Standards to learn more. |
| Target setting (metrics and methods) | Consideration of two proposed methods for emissions-based targets—Linear Contraction (LC) or Budget Conserving Contraction (BCC)—and inclusion of alignment-based approaches. | For emissions-based targets the SBTi proposes to focus on the Linear Contraction approach or the Sector Decarbonization Approach, and introduces further options for target setting based on alignment metrics and the Asset Decarbonization Plan. | New options for scope 1 target setting, enhancing flexibility to use the methods that make the most sense for each business, while maintaining ambition. |
| Performance | Proposal allowing companies to adjust their next targets, following the validation cycle, based on performance via method design or removals purchases. | Following the validation cycle, subsequent targets can be adjusted based on performance via method design. | More focused approach to ensure companies stay the course, improve targets where necessary, while also building consistency across the ecosystem. |
Scope 2 targets
Companies are seeking greater clarity on expectations around scope 2 (electricity, heat, steam, and cooling) targets and low-carbon electricity. The draft Standard sets clear criteria for scope 2 decarbonization, including the use of credible contractual instruments and geographic and temporal matching. Temporal matching is implemented through a phased approach that begins with the very largest electricity consumers. These metrics and benchmarks, as well as the potential role for energy efficiency in scope 2 targets are further examined in our research explanatory paper Integrating a decade of learning in voluntary low-carbon electricity markets.
These updates aim to align with forthcoming GHG Protocol revisions, helping companies manage actual emissions exposure and transition risks, while supporting credible claims.
| Topic | First Consultation Draft | Updated Draft | Summary of Change |
| Ambition | Near- and long-term scope 2 targets required for all companies. | Near-term targets required for all companies; long-term targets required for Category A companies and optional for Category B companies. | Near-term targets must include physical deliverability, a project age limit of ten years, and hourly matching for the largest users. |
| Target boundary | 100% of scope 2 emissions covered. | Near-term: includes mechanisms to exclude limited amounts of electricity, heat, steam and cooling from the near-term target boundary. Long-term: 100% coverage. | Heat, steam, and cooling follow a pathway aligned with the International Energy Agency Net Zero Emissions scenario. |
| Target setting (metrics and methods) | Requirement to set both a location-based target, and either a market-based or electricity purchasing target. | Near-term: low-carbon electricity alignment targets required. Long-term: low-carbon electricity alignment, location or market-based optional. | Ensure companies manage their actual emissions exposure and the market instruments they use to procure clean energy. |
| Performance | Introduces criteria for purchasing zero carbon electricity. | Improved criteria for purchasing low carbon electricity. | We are developing high-level integrity principles to guide the potential use of environmental attribute certificates, including those issued to low-carbon electricity. These principles––covering accuracy, exclusivity, traceability, transparency, and expiry––are provisional and will be refined through consultation and pilot testing. |
Scope 3 targets
Our research has shown that addressing value chain emissions continues to be one of the biggest barriers to setting science-based targets—due to varying levels of access to high quality data and limited influence over some emissions’ categories.
The draft Standard refines the target-setting approach to address priority emissions and includes three options for setting targets—emissions intensity, activity alignment, and counterparty alignment—to reflect the diversity of value chain emissions and the different mitigation strategies companies use across their value chains. This approach incentivizes continuous improvements and impact over time to help companies report progress and manage emissions in their value chain in a more practical, credible, and scalable way.
For more details, check out our research explanatory paper Towards a focused and flexible framework for scope 3 targets.
| Topic | First Consultation Draft | Updated Draft | Summary of Change |
| Target boundary | Determining category and activity relevance:
| Determining category relevance:
| Refocus target setting on the highest-priority value chain emission sources, allowing exclusions for lower-impact activities and areas where influence is limited. |
| Target setting (metrics and methods) | Introduces new alignment options, and includes both, emissions reduction and mandatory supplier engagement targets. | Focus on alignment targets in the near-term, and absolute emissions in the long-term. | Introduce three main options for setting targets (emissions intensity, activity alignment, and counterparty alignment) to reflect the diversity of value chain emissions and the different mitigation strategies companies use across their value chains. |
| Performance | Increased nuance for “hard to trace” emissions:
| Transparency at intervention level. Companies will report mitigation efforts based on four levels:
| Improve transparency and reflect the range of data quality and mitigation strategies companies use across their value chains. |
Taking responsibility for ongoing emissions
Even as companies reduce emissions, some emissions will continue to be released on the path to net-zero. Taking responsibility for the impact of these ongoing emissions can help limit temperature overshoot, reduce transition risks, and accelerate climate solutions.
To support this, the SBTi is introducing a new recognition mechanism for companies that take early, voluntary action to address the impact of their ongoing emissions, plus a requirement for all Category A companies to progressively assume responsibility for these emissions from 2035 onward.
While the focus remains on direct decarbonization, the post-2035 requirement aims to ensure that an increasing proportion of these removals deliver long-lived carbon storage so that by the time companies reach their net-zero target, corresponding removal capacity has been developed to address residual emissions.
For further information on how near-term investments in nature can complement the scale-up of long-lived carbon removal needed over time, see Nature and CDR: How SBTi’s Ongoing Emissions Responsibility framework incentivizes both.
| Topic | First Consultation Draft | Updated Draft | Summary of Change |
| Beyond value chain mitigation (BVCM) | Recognition for companies taking responsibility for the impact of ongoing emissions. | Integrates BVCM, removals, and neutralization into a new, cohesive framework. It introduces two levels of recognition for ongoing emissions responsibility:
From 2035, Category A companies will be required to take responsibility for at least 1% of their ongoing scope 1-3 emissions through carbon removal activities, progressively increasing through the net-zero target year, at which point all residual emissions are neutralized on an ongoing basis through a portfolio of removals, with at least 41% from long-lived removals. | Provides a clear, voluntary recognition framework for companies going above and beyond in the near-term. Enables companies to build capacity for removals from 2035 onward to ensure neutralization capabilities by net-zero target year. |
| Removals on the way to net-zero | Explores whether removal targets to proactively address residual emissions should be required or recognized, and defines eligible removals based on durability thresholds (with two options for consultation). | ||
| Neutralization | Requirement to neutralize residual emissions at net-zero target year and thereafter, with further consultation on the role of durability. |
Transparency as a lever for impact
Clear and transparent communication of performance against targets strengthens credibility by demonstrating measurable progress toward net-zero goals. The updated draft Standard outlines the process for renewing targets at the end of each target cycle. It also includes a new requirement to report dependencies and barriers to achieving targets, ensuring companies stay the course, improve targets where necessary, and demonstrate their climate strategies are robust, ambitious, and accountable.
The draft Standard also provides criteria for companies to substantiate claims related to target setting and target progress, and communicate their efforts in a clear and credible way. Once a company has completed its performance assessment and set a new target, it will be able to make claims about its continued progress toward net-zero. The SBTi is exploring ways to recognize companies that have credibly met their targets, and highlight those showing leadership beyond the minimum requirements of target setting.
| Topic | First Consultation Draft | Updated Draft | Summary of Change |
| Framework | Introduction of four process-related claims including: application, ambition, conformance, and renewal. | Delimitation of three broad categories of claims covering all stages of the validation cycle for each target-setting method, that is, commitment, performance, and conformance. | The types of claims available have been further detailed while simplifying the overall framework. |
| Substantiation | Introduction of general guidelines on substantiating claims related to science-based target setting and SBTi validation. | Introduction of additional performance and integrity criteria throughout the Standard, as well as Annex E, providing examples of claims currently under consideration. | Provide a more robust framework for companies to substantiate permitted claims. |
| Renewal | Introduction of the validation cycle providing an end-to-end journey on the path to net-zero. | Additional proposal to allow for early target renewal. | Companies will be allowed to renew targets up to 24 months in advance before the completion of current targets, in order to avoid timing gaps between target cycles. |
| Reporting | Reporting requirements contained throughout the Standard. | Reporting criteria collected in Annex B, and reporting timing requirements clarified. | Clearer structure and contents of reporting requirements. |
A smooth transition
While these updates will prove critical to accelerating action, companies are encouraged to continue to set targets under the current Corporate Net-Zero Standard (Version 1.3). If your company already has targets, these are expected to remain valid until the end of your target timeframe. If your company is setting new targets, the existing Standard continues to be a credible, well-established framework for companies worldwide to set science-based targets.
The message is clear: don’t wait to act. Targets set today under Version 1.3 remain relevant and form a strong foundation for future alignment with Version 2. The SBTi will provide further details through publication of transition guidance in due course.
Help shape the future of corporate climate action
This consultation is your opportunity to help shape the next generation of corporate climate action.
Feedback and consultation are critical to developing a Standard that is scientifically robust, credible, and workable for businesses—helping accelerate climate action in line with global net-zero goals. You can submit your feedback on the updated draft Standard through the consultation survey by December 12, 2025 (11:59 PM PT).
We look forward to your input. Together, we can build a stronger, more inclusive Standard, designed for the real world—turning ambition into action, and action into impact.
This blog was updated to reflect the extended deadline for the second public consultation on the Corporate Net-Zero Standard V2 to December 12, 2025 (11:59 PM PT). This extension aims to ensure stakeholders have sufficient time to review the draft materials and provide high-quality, considered feedback. It reflects SBTi’s commitment to a transparent, inclusive, and robust standard development process.
