Developing the Corporate Net-Zero Standard
This SBTi is developing V2 of its Corporate Net-Zero Standard. A draft is now available for public consultation. The draft standard aims to be science-based, innovative and pragmatic – in line with feedback from businesses about what they need.
The SBTi’s flagship Corporate Net-Zero Standard has become the global benchmark for businesses committed to ambitious climate action – more than 3,000 companies have science-based net-zero targets or have committed to make them.
Now, we are revising this standard to support more companies to set targets and make corporate climate action more effective, to accelerate the pace of decarbonization.
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.
Your expertise is needed: Feedback on the draft Corporate Net-Zero Standard V2
Feedback and stakeholder consultation are critical to the development of science-based target-setting standards that work for businesses and accelerate climate action. The first draft of the Corporate Net-Zero Standard V2 is now open for public consultation until June 1, 2025.
Our Chief Technical Officer, Alberto Carrillo Pineda and Head of Corporate Standards, Emma Watson, provide an overview of the contents of the draft standard:
To understand the draft standard:
- Explore our digital consultation guide, outlining all the information for the consultation in one place.
- Read our blog series, covering key themes in the draft: scope 1, 2 and 3 emissions, progress and environmental attribute certificates (EACs).
- Watch our deep dive training video series on eight topics explored in the draft standard.
- Register and submit your questions for our Q&A webinar on 9 April.
- Sign up our mailing list and follow us on social media to receive the latest updates.
Your expertise is vital to helping us develop a final standard that is science-based, innovative and pragmatic. When you are ready to provide feedback, complete the public consultation survey before 1 June 2025.
Once the first consultation is complete, SBTi will review all the feedback received and use it to help develop the next draft of the standard. This will go for a second round of consultation and pilot testing. Details of how to apply to the pilot will be made available at a later date.
The evolution of the Corporate Net-Zero Standard is at the frontier of best practice while ensuring it is actionable and effective for companies. The draft of V2 aims to introduce clarity on critical areas, including:
- Categorization: To ensure inclusivity and relevance, a new categorization system tailors requirements based on company size and geography, making the standard more accessible.
- Progress and transparency: The draft standard helps companies understand how to credibly report progress against their goals and the process for setting updated targets in line with relevant external requirements.
- Focus on action: The draft standard splits out scope 1 and scope 2 emissions to reflect the unique challenge decarbonizing each of these categories. The scope 2 approach increases the focus on action by requiring companies to source their electricity from zero carbon sources.
- Value chain emissions (scope 3): Addressing value chain emissions is one of the biggest challenges in corporate decarbonization. The SBTi is exploring several ways to increase the effectiveness of scope 3 target-setting and implementation. This includes considering a wider set of metrics, methods and tools that companies can use to set targets, report progress and manage emissions in their value chain.
- Carbon removals: 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.
- Interoperability: The relationship to other SBTi standards, such as the upcoming Financial Institutions Net-Zero Standard, and other relevant frameworks, standards, and regulations is clarified in the public consultation draft.
The SBTi is convening five expert working groups (EWGs) to support the revision of the Corporate Net-Zero Standard.
The EWGs will bring together subject-matter experts from across business, civil society and academia to provide in-depth input on key topics. These groups will focus on five key themes that are critical to businesses setting effective, practical and ambitious targets:- Scope 2: Addressing emissions from purchased or acquired electricity to ensure effective decarbonization.
- Scope 3: Target-setting approaches, strategies and interventions for addressing scope 3 emissions.
- Removals: Neutralization and Carbon Dioxide Removal (CDR), particularly regarding removals targets.
- Ongoing emissions and BVCM: Addressing ongoing emissions in the transition to net-zero through Beyond Value Chain Mitigation (BVCM) activities, including the scale of action and allowable measures.
- Data quality, data assurance and claims: Data quality and assurance and substantiation of claims.
The SBTi held an open call for applicants, which closed in February 2025. Thank you to all those that applied - we will respond to all applicants and publish the list of members soon. View terms of reference for the EWGs here.
The SBTi has gathered insights from a range of sources to inform the development of the Corporate Net-Zero Standard V2 to date. This includes working sessions with key stakeholders including businesses.
We have also carried out the following research:- Scope 3 discussion paper: A discussion paper setting out the SBTi’s initial thinking on potential changes being explored around scope 3 target setting, including underlying principles and concepts. The paper is informative in nature and does not propose requirements or criteria. Published July 2024. The feedback report from this paper is available here.
- Evidence received on the effectiveness of Environmental Attribute Certificates: The release of all evidence received as part of the open call on the effectiveness of environmental attribute certificates (EACs) without SBTi assessment. Published July 2024.
- Environmental Attribute Certificate reports presenting the SBTi’s synthesis of the evidence submitted through the call for evidence on EACs:
- Synthesis report of evidence on the effectiveness of Environmental Attribute Certificates in corporate climate targets – Part 1: Carbon credits. Published July 2024.
- Evidence synthesis report part 2: Energy carries and commodity certificates. Published March 2025.
- Evidence Synthesis Report Part 2: Environmental Attribute Certificates – Fuels. Published March 2025.
- Evidence Synthesis Report Part 2: Environmental Attribute Certificates – Electricity. Published March 2025.
- Evidence Synthesis Report Part 2: Environmental Attribute Certificates – Commodities. Published March 2025.
- Findings of independent systematic review on the effectiveness of carbon credits in corporate climate targets: A statement summarizing the assessment conducted by an independent third party on peer-reviewed academic literature on the effectiveness of carbon credits when used as a substitute for direct abatement. The statement summarizes the process followed, findings and limitations of this research exercise. The Annex describes the methodology. Published July 2024.
The SBTi welcomes and invites feedback on this project at any time via the project feedback form.
For enquiries about the SBTi Corporate Net-Zero Standard, email the team at standards@sciencebasedtargets.org.
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