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
Key features at a glance
From ambition to progress: enhanced accountability and recognition model
As a growing number of companies reach the end of their target timeframe, and as the focus shifts from ambition to progress, the draft standard introduces a new validation model that provides an end-to-end framework for incentivizing and recognizing credible climate action. The model guides companies in setting science-based targets, assessing and communicating progress at the end of their target cycle and establishing new targets for the next cycle. The aim is to enable and reinforce accountability, recognition and continuous improvement.
Tailored requirements based on company size and geography
The draft standard provides more tailored requirements for companies based on their size and geography. Two categories are introduced. Category A companies (large and medium-sized companies operating in higher-income geographies) are required to follow all criteria. Category B companies (small and medium-sized companies operating in lower-income geographies) are offered increased flexibility by making some criteria optional. This categorization intends to drive climate action across all types of companies while acknowledging differences in size, resources and operating context.
Enhanced scope 3 target-setting framework
To achieve net-zero emissions, it is critical for companies to align their procurement and revenue-generating activities with global climate goals. Recognizing the importance of this while acknowledging the challenges that companies face today, the draft standard introduces several changes intended to address common challenges.
Rather than using a fixed-target setting boundary (67% for near-term targets and 90% for long-term targets), the draft standard explicitly incentivizes companies to prioritize action on the most relevant sources of emissions in their value chain.
Acknowledging the challenges with accessing primary emissions data for activities in the value chain, the draft standard places greater emphasis on non-emission metrics and targets, such as the share of procurement directed towards entities and activities that are aligning with global climate goals, or the share of revenue derived from net-zero aligned products and services.
A more nuanced approach to substantiate progress against targets
Acknowledging the practical challenges that companies face today in establishing traceability and accessing primary emissions data for value chain activities, the draft standard proposes a more nuanced approach to addressing impact and substantiating progress against indirect emission sources (scopes 2 and 3).
The draft standard continues to prioritize direct mitigation, i.e. actions and interventions that can be linked to specific emission sources in the company’s value chain through a robust chain of custody model. For instance, measures to minimize emissions by implementing efficiency measures or switching towards lower-emitting suppliers, commodities or products.
When traceability to a specific emissions source in the value chain cannot be established, companies may rely on emissions data and interventions at the ‘activity pool’ level to assess performance over time and substantiate progress against targets. Examples include an ‘upstream supply pool’, such as a supply shed from which companies source a specific commodity, or a ‘downstream activity pool’, such as the electricity grid powering the products that the company brings to market.
When traceability either to the specific emissions source or the activity pool cannot currently be established, or if insurmountable barriers persist in addressing a source of emissions, the draft standard acknowledges the role of indirect mitigation to drive transformation relevant to a company’s value chain and comparable to direct mitigation as a time-limited measure to address indirect emissions. For example, the procurement of sustainable aviation fuel following a book-and-claim approach to achieve targets against jet-fuel-related emissions. Indirect mitigation measures are expected to adhere to quality criteria that will be refined throughout the consultation process.
Above and beyond: catalyzing corporate climate finance
The draft standard maintains its focus on the mitigation hierarchy by focusing on the reduction of emissions across company operations and value chains. At the same time, the draft acknowledges the urgency of addressing emissions released into the atmosphere today and the critical role that corporates can play in mobilizing finance for mitigation activities beyond their value chain.
While the current version of the standard (Version 1.2) recommends companies go above and beyond their science-based targets through beyond value chain mitigation (BVCM), the draft standard aims to provide a stronger incentive by recognizing companies that not only set science-based targets to reduce emissions within their operations and value chain but take responsibility for addressing the impact of emissions released into the atmosphere as they undergo their net-zero transformation.
Through the consultation process, the SBTi aims to identify the most effective mechanisms to shape and recognize this leadership practice.
Continued relevance of 1.5°C in science-based target setting
The temporary breach of the 1.5°C global warming threshold in 2024 and growing impact of climate change underscore the critical importance of accelerating efforts to phase out greenhouse gas (GHG) emissions from our economy. Scientific evidence shows that even small increases in global temperature—every 0.1°C—exacerbate risks of catastrophic impacts, such as more extreme weather events and irreversible tipping points.
As the window to stabilize global temperatures below 1.5°C narrows, and the effects of small temperature increases become clearer, the case for strengthening climate ambition becomes stronger. This ambition must also lead to meaningful action that lowers the accumulation of GHGs in the atmosphere.
In light of this, the draft of the Corporate Net-Zero Standard and its underlying pathways maintain achieving net-zero emissions by mid-century as the central ambition
