Corporate Net-Zero Standard V2 Second Public Consultation

We have developed this digital consultation guide to facilitate participation in the second 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 elements of the second consultation draft, and how to take part. Sections 4 – 9 introduce the contents of each of the chapters of the draft Standard 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 this digital consultation guide on a desktop computer, as the PDF viewer is not available on mobile devices.

Corporate climate leadership starts with embedding net-zero ambition across strategy and operations. The updated draft Standard requires company-wide ambition to work towards net-zero, clear internal accountability, and connection of this ambition to transition planning and transparency over dependencies.

Companies are expected to align near-term actions across operations and value-chains with long-term climate objectives, and to publish transition plans setting out the roadmap of actions they will take to demonstrate this.

Our aim is to make net-zero by 2050 a guiding north star for target setting, underpinned by robust governance, transparent reporting, and alignment of core business practices.

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 introduces a range of options to set separate targets to address scopes 1, 2, and 3 emissions, better reflecting the range of levers that companies have in different contexts and allowing them to focus on priority emissions sources where they can have the most impact. It includes:

• Diversified scope 1 target-setting methods: The revised Standard introduces dedicated scope 1 target-setting requirements and more granular pathways, enabling companies to use metrics that better reflect their activities and priority emission sources. Additionally, 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 within a carbon budget.
• Tightened integrity for low-carbon electricity (scope 2): The draft Standard sets clear criteria for scope 2 decarbonization, including the use of credible contractual instruments and geographic and temporal matching, implemented through a phased approach that begins with the very largest electricity consumers. These updates aim to align with forthcoming GHG Protocol revisions, helping companies manage actual emissions exposure and transition risks, while supporting credible claims.
• Focused and practical scope 3 framework: The draft Standard refines the target-setting approach to address priority emissions, and introduces three options for setting targets—emissions intensity, activity alignment, and counterparty alignment—to reflect varying data quality and the different mitigation strategies companies use across their value chains. It refocuses target setting on the highest-priority value chain emission sources, allowing exclusions for lower-impact activities and areas where influence is limited, and includes action-based targets that consider value chain complexity and data maturity. This approach incentivizes continuous improvement over time, and considers a wider set of metrics, methods and tools to help companies report progress, and manage emissions in their value chain in a more practical, credible, and scalable way.
   

The revised Standard sets expectations on how progress against targets should be measured and disclosed. It provides an end-to-end cycle that incentivizes ambition and recognizes progress achieved at the end of the target cycle, driving continuous improvement and accountability to help companies remain aligned with their net-zero ambitions.

Chapter 5 maintains the same requirements proposed in the first public consultation for reporting on target metrics and scope 1, 2 and 3, as well as events that trigger required target recalculations. A new requirement has been added for companies to report on barriers and gaps to achieving targets. This aims to ensure companies stay the course, improve targets where necessary, and demonstrate impact to investors and wider stakeholders.

Once you have reviewed the draft, you can submit your feedback via an online survey.