The Corporate Net-Zero Standard

The SBTi’s Corporate Net-Zero Standard is the world’s only framework for corporate net-zero target setting in line with climate science. It includes the guidance, criteria, and recommendations companies need to set science-based net-zero targets consistent with limiting global temperature rise to 1.5°C.

Following SBTi’s Standard Operating Procedure for the Development of SBTi Standards and adhering to the regular review cycle that must happen every two to five years, the Corporate Net-Zero Standard is currently undergoing major revision. Learn more about the development process.

Why set a science-based net-zero target?

The Corporate Net-Zero Standard provides a common, robust, science-based understanding of net-zero. It gives business leaders clarity and confidence that their near- and long-term decarbonization plans are aligned with climate science.

Net-zero pledges now cover 92% of GDP and 88% of emissions worldwide. Despite this, the definition of net-zero and the path to get there has been interpreted in different and inconsistent ways.

Without a common definition, targets can differ in terms of the emissions sources included and the depth and speed of emissions reductions. This has fuelled confusion and accusations of greenwashing.

The SBTi’s Corporate Net-Zero Standard addresses this problem by providing a clear, consistent and science-based definition of net-zero. By aligning with this Standard, companies can set science-based net-zero targets to demonstrate their climate action leadership and their commitment to ensuring a habitable planet for all.

Key components of the Corporate Net-Zero Standard

1. Near-term targets: Rapid, deep cuts to direct and indirect value-chain emissions must be the overarching priority for companies. Companies must set near-term science-based targets to roughly halve emission before 2030. This is the most effective, scientifically-sound way of limiting global temperature rise to 1.5°C.
2. Long-term targets: Companies must set long-term science-based targets. Companies must cut all possible - usually more than 90% - of emissions before 2050.
3. Neutralize residual emissions: After a company has achieved its long-term target and cut emissions by more than 90%, it must use permanent carbon removal and storage to counterbalance the final 10% or more of residual emissions that cannot be eliminated. A company is only considered to have reached net-zero when it has achieved its long-term science-based target and neutralized any residual emissions.
4. Beyond Value Chain Mitigation (BVCM): Businesses should invest now in actions to reduce and remove emissions outside of their value chains in addition to near- and long-term science-based targets. Please refer to the BVCM page and resources for details.

Who can set a net-zero target?

The Corporate Net-Zero Standard is intended for companies that wish to set science-based net-zero targets through the SBTi.

SMEs can set net-zero targets by using the Corporate Net-Zero Standard or a tailored route. Read the SME FAQ for more information.

This Standard does not cover net-zero targets for financial institutions. The SBTi is developing the first global standard for net-zero targets in the financial sector.

How to set a net-zero target

Corporates can follow the SBTi’s established target-setting process to commit to and set science-based targets.

Companies are invited to commit to set net-zero targets by signing the SBTi Commitment Letter. To submit your net-zero target for validation, use the SBTi Target Validation booking system, or for SMEs, use the SME target setting system.

Companies can also use the SBTi Criteria Assessment Indicators (CAI) to understand the relevant criteria by sector or target type. The CAI consolidates all criteria across SBTi resources, providing businesses with verifiable control points to use when developing science-based targets. It also provides clear and concise descriptions of the minimum documentation required to demonstrate alignment with each criteria point.