Corporate Net-Zero Standard Version 2.0 Public Consultation
Explore the initial draft of the Corporate Net-Zero Standard Version 2.0 with our digital consultation guide.
Explore the draft standard
- 01 Getting started
- 02 Take part in the public consultation
- 03 Key features at a glance
- 04 Draft Standard Chapter 1: Corporate Net-Zero Commitment
- 05 Draft Standard Chapter 2: Determining Performance in the Target Base Year
- 06 Draft Standard Chapter 3: Target-Setting
- 07 Draft Standard Chapter 4: Addressing the Impact of Ongoing Emissions
- 08 Draft Standard Chapter 5: Assessing and Communicating Progress
- 09 Draft Standard Chapter 6: SBTI Claims
- 10 Project documentation
- 11 Frequently asked questions
Draft Standard Chapter 5: Assessing and Communicating Progress
Background and key concepts
Targets provide essential direction to companies as they decarbonize, but target-setting is just the starting point of this process. Achieving measurable progress toward these targets is crucial for a credible transition to a net-zero-aligned state.
Acknowledging the growing number of companies approaching the end of their near-term targets and the demand for clearer guidance on determining target progress, this draft standard introduces a new validation model (see A.5 Validation model). This model extends the SBTi’s focus from target-setting to include target implementation.
This cyclical model provides a structured framework to assess conformance with the standard’s requirements at key stages: the Entry Check, where companies commit to transitioning toward a net-zero-aligned business model; the Initial Validation, when targets are formally assessed; and the Renewal Validation, conducted at the end of the target timeframe to evaluate, communicate, and recognize progress.
The requirements within this chapter to assess and communicate progress are particularly critical for promoting accountability and transparency. This draft requires companies to assess and communicate progress at the end of their target timeframe and to set new targets that account for previous performance, bridging any gaps with achieving net-zero. By strengthening accountability and recognition, the revised validation cycle ensures that companies not only commit to science-based climate action but also demonstrate measurable progress and continuous improvement in the global effort to mitigate climate change.
Draft criteria and recommendations
5.1 Assessing and communicating target progress
Key changes and rationale (new):
For a company to make credible progress claims, robust evidence is required that substantiates mitigation outcomes. Although this criterion builds on criteria related to carbon credits and avoided emissions in Version 1.2 of this standard, this draft introduces an overarching criterion to stipulate the principles against which progress is substantiated. To enhance the credibility of such claims, the SBTi is consulting on whether third-party assurance of all supporting data should be a recommendation or a requirement for companies to substantiate progress.
Companies assess and communicate their progress against targets at the end of each target cycle, evaluate their performance level against net-zero benchmarks and set new targets to continue their transformation to net-zero.
Key changes and rationale (new):
As a growing number of companies reach the end of their target timeframe, this draft introduces a standardized process for evaluating progress against targets. This standardized process ensures consistency in progress assessments which is necessary for companies to make credible and comparable claims. To support this, the SBTi requires that all companies undergo a progress assessment using the formulas described in Annex G: Progress Assessment Formulas.
5.2 Setting targets for the next cycle
This standard requires companies to regularly assess their performance across relevant indicators against a net-zero-aligned benchmark, identify any gaps, and set new targets to bridge these gaps. At this stage, companies will return to Chapter 2 to determine performance against net-zero benchmarks and Chapter 3 for target setting.
At the end of the target timeframe, companies will exhibit varying levels of progress. Where scope 1 reductions fall short of the targeted ambition, this standard proposes alternatives to address potential underperformance. These options are outlined in the scope 1 target-setting section of this standard.
5.3 Renewal validation
To be eligible for renewal validation, companies are required to provide evidence that demonstrates that they conformed with all requirements of this standard across the previous target cycle. This is designed to prevent non-conformance across multiple target cycles and encourage continuous improvement. Companies shall submit the assessment of progress against targets from the previous target cycle, as well as new targets for the next target cycle. The SBTi is consulting on whether third-party assurance of all supporting data should be a recommendation or a requirement for companies to substantiate progress.
Key changes and rationale (revised):
Previous versions of this standard required companies to report annually on emissions and target progress but did not specify the data points to be disclosed. This draft standard introduces clearer requirements, mandating companies to publicly report on target progress at the end of the target cycle and specifying the information to be disclosed.