Corporate Net-Zero Standard Version 2.0 Public Consultation

Through public consultation, the SBTi is empowering businesses and other stakeholders to feed back on the proposals, ensuring that the standard remains both rigorous and practical.

Key areas of proposed revision include:

• Focus on action - the draft standard splits out scope 1 and scope 2 emissions to reflect the unique challenges decarbonizing each of these categories. Proposals include a commitment to move to low-carbon electricity no later than 2040.
• New options for tackling scope 3 emissions reductions - the area over half of businesses surveyed by the SBTi cited as the most significant challenge in net-zero target setting. The draft standard proposes increased flexibility through options to set targets for green procurement and revenue generation, instead of setting an emissions reduction target. In focusing on direct suppliers and/or those in emissions-intensive sectors to align with net-zero, this proposal intends to focus action in the most emission-intensive activities and those where companies have the highest influence.
• Opportunities to scale carbon removals and mobilize climate finance above and beyond the requirement for the direct decarbonization to meet emissions reduction targets - the draft standard sets out options for consideration to address unabated and residual emissions. This includes looking at formally recognizing companies which are investing in Beyond Value Chain Mitigation (BVCM) and the introduction of interim carbon removal targets.
• Tracking and communicating progress against targets - the draft standard introduces an assessment and communication of progress against targets requirement, to enhance accountability and recognize companies leading on decarbonization.
• Simplified requirements for medium-sized companies in developing markets and SMEs - through the introduction of streamlined requirements reflective of capabilities and resources, providing a springboard for universal voluntary corporate climate action.

Your expertise is vital to helping us develop a final standard that is science-based, innovative and pragmatic. We invite all stakeholders to understand the draft standard by:

• Exploring our digital consultation guide, outlining all the information for the consultation in one place.
• Reading our blog series, covering key themes in the draft: scope 1, 2 and 3 emissions, progress and environmental attribute certificates (EACs).
• Watching our deep dive training video series on eight topics explored in the draft standard.
• Registering and submitting your questions for our Q&A webinar on April 9th.
• Joining our mailing list and following us on social media to receive the latest updates.

When you are ready to provide feedback, complete the public consultation survey before June 1st 2025.

Absolutely. The current Corporate Net-Zero Standard is the best framework available to set net-zero targets. We are committed to ensuring a smooth transition from the current to new standard:

For companies setting new near-term targets in 2025 and 2026

• Companies will continue to be able to set near-term targets for 2030 under the current versions of the Corporate Net-Zero Standard (V1.2) and Near-Term Criteria (V5.2) in 2025 and 2026. It is intended that from 2027 companies will use V2 to set new near-term and long-term targets.
• Near-term targets set in 2025 and 2026 under Corporate Net-Zero Standard V1.2 and Near-Term Criteria V5.2 will remain valid for five years or until the end of 2030, whichever is earlier. Companies validating near-term targets for this period should develop near-term targets for the subsequent period using V2 by the end of 2030 at the latest.
• The SBTi will provide a pathway for companies with targets validated in 2025 and 2026 to align their scope 3 targets with V2. This transition pathway will ensure a smooth process, preventing duplication of previously completed work. Further details will be released soon.

For companies with existing near-term targets

• Existing near-term targets are expected to remain valid until 2030, or the end of the target timeframe, whichever comes first.
• SBTi will provide further details on the intended renewal process for companies with previously validated near-term targets in the second public consultation, scheduled for later this year.

The standard revision is being carried out in line with our Standard Operating Procedure for Development of Standards, with our Technical Department leading its development, the independent Technical Council approving it and, finally, the Board of Trustees adopting it.

The draft standard will also be published for public consultation twice before finalization, in addition to input through the expert working groups and extensive pilot testing initiative.

Feedback from those actually putting the standard into action is critical - it’s only through marrying rigor with practicality that we can accelerate businesses' net-zero ambitions.

The draft standard sets out a science-based, innovative and pragmatic framework that enables more businesses worldwide to join the 3,000 with net-zero targets or which have committed to set them. It is informed by the latest climate science, regulation, and recognized standards and frameworks, as well as feedback from businesses about what they need to achieve the collective ambition of a net-zero future.

Through public consultation, the SBTi is empowering businesses and other stakeholders to feed back on the proposals, ensuring that the standard remains both rigorous and practical.

We are updating the Corporate Net-Zero Standard to support more companies to set targets and make corporate climate action more effective, to accelerate the pace of decarbonization.

The six chapters in the draft guide companies from initial commitments, through progress assessment and target renewals and concluding with reaching and maintaining a net-zero-aligned state.

Chapter 1 provides criteria on company-level net-zero commitments and transition plans. Chapters 2 to 6 outline criteria for companies to align with a recurring cycle. Together, they support a new validation model intended to enable continuous improvement throughout a company’s transition to net-zero.

The SBTi’s position remains unchanged – fast and deep emissions reduction must be front and center.

We know that investment in permanent carbon removals and related carbon credits can complement corporates' efforts to reduce their own carbon footprint - but should never be a substitute for this. The consultation therefore invites discussion of opportunities to address unabated and residual emissions, as well as situations where companies have acted but may not be able to realise their near-term ambition in full.