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
Explore the first consultation draft of the Corporate Net-Zero Standard V2
The SBTi is revising the Corporate Net-Zero Standard to support more companies to set targets and make corporate climate action more effective. As part of this process, we have published a first draft of V2 of the standard for public consultation.
The draft standard aims to be both more rigorous and practical – in line with feedback from businesses and other stakeholders.
We have developed this digital consultation guide to facilitate participation in the consultation. It is designed to help you understand the content of the draft and identify the key changes and areas requiring feedback. The feedback we gather from consultations, our expert working groups and pilot testing will all inform changes ahead of its final approval. We encourage everyone to participate.
The first two sections of this guide highlight the key changes proposed between the initial consultation draft and the current standard (Version 1.2), and how to take part. Sections 4 – 9 introduce the main chapters of the draft standard, the key changes in each chapter and signpost to the relevant draft criteria via a PDF viewer. The final section provides supporting documentation, including background information, key changes and details of the development process.
We recommend browsing the digital consultation guide on a desktop computer, as the PDF viewer is not available on mobile devices.
Moving from the current standard to the new standard
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.
Companies with existing near-term 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.
Chapter 1: Corporate net-zero commitment
Currently, most companies start the science-based target-setting process by submitting a commitment letter in which they pledge to set science-based emissions reduction targets within 24 months. The draft standard proposes replacing the current commitment letter with a more robust commitment process.
Our aim is that these proposals align with emerging best practices, including those developed by the UN High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities, the UN Race to Zero and the Climate Action 100 Framework. They require companies to more clearly and uniformly demonstrate their intentions and plans to back up net-zero targets.
Chapter 2: Determining performance in the target base year
Setting effective science-based targets requires companies to determine their base year performance in a clear and transparent way. Chapter 2 of the draft standard provides a more robust framework for companies to assess their baseline for target-setting purposes. Some of the key proposed changes include:
- A revised consolidation approach to align with best practice, emerging regulation and voluntary frameworks
- Changes to base year selection to ensure that the base year is representative of the actual structure and performance of the company and that targets are effective in driving change
- A new approach to identify the most relevant sources of scope 3 emissions, which serves as the basis for scope 3 target setting
- Incentives to increase the quality of data used for target-setting purposes, including a requirement for Category A companies to obtain third-party assurance on GHG emissions inventories
Chapter 3: Target setting
Chapter 3 of the draft standard describes the target-setting process which builds upon previous SBTi target-setting criteria and the current version of the Corporate Net-Zero Standard. It also proposes changes to make the target-setting process more effective and addressing stakeholder feedback. This chapter covers:
- A more nuanced benchmarking approach to determine target ambition
- Target ambition, composition and timeframe
- Addressing scope 1 and 2 emissions
- Addressing scope 3 emissions
- Addressing residual emissions
- Target transparency, review and adjustment
Chapter 4: Addressing the impact of ongoing emissions
Companies release emissions while they work to implement transformations to achieve net-zero emissions. These are referred to as ‘ongoing emissions’. They are different from residual emissions, which remain at the net-zero target year after all feasible abatement measures have been implemented.
Version 1.2 of the Corporate Net-Zero Standard recommends companies take responsibility for ongoing emissions by contributing to mitigation outside their value chains. The draft standard proposes additional recognition for companies that address ongoing emissions through BVCM. This change provides additional incentive for companies to address the impact of emissions released into the atmosphere throughout the net-zero journey and to contribute to climate mitigation outside of their value chains.
Chapter 5: Assessing and communicating progress
Acknowledging the growing number of companies approaching the end of their near-term targets and the demand for clearer guidance on determining target progress, the draft standard introduces a new validation model that extends the SBTi’s focus from target-setting to include target implementation. The draft requires companies to assess and communicate progress at the end of their target period 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.
Chapter 6: SBTi Claims
In line with best practice for sustainability standards, the draft standard introduces a new chapter providing general guidelines on substantiating claims related to science-based target setting and SBTi validation. It clarifies what companies can claim at different stages of the target-setting process. The draft will be supplemented with specific types of claims and substantiation guidelines, informed by the consultation process.
Respond to the consultation
Once you have reviewed the draft, you can submit your feedback via an online survey.
