SBTi Net Zero Standard 2.0: What’s New?

A Significant Shift in Target Setting

Version 2.0 represents the most significant update to the Corporate Net-Zero Standard since its launch, shifting the focus from setting ambitious commitments to demonstrating measurable progress. Oliver Orlik explained how under the updated framework, organisations will work within mandatory five-year target cycles, using recent emissions data to establish updated baselines and assess progress more regularly.

A major feature of the updated standard is the increased emphasis on transition planning. Rather than setting targets in isolation, organisations are expected to support them with robust governance, transparent assumptions and clear implementation plans that demonstrate how emissions reductions will be achieved in practice.

The standard also introduces an implementation hierarchy, providing organisations with a structured approach to decarbonisation by outlining the range of actions available as they work towards their science-based targets. For a detailed breakdown of the implementation hierarchy and guidance on how each level should be applied, download Oliver’s presentation slides.

We don't want the science-based target to exist as a badge on a company website. We want the action plans to exist behind it.

Oliver Orlik

Europe Engagement Manager, SBTi

A New Approach to Scope 3 

Scope 3 sees some of the most significant changes in Version 2.0. Oliver highlighted that large organisations are encouraged to focus on their most material emissions categories, allowing effort to be directed towards the areas where meaningful reductions can be achieved. The updated standard introduces a wider range of target-setting options, including supplier alignment, product alignment and category-specific approaches alongside absolute emissions reduction targets. This provides greater flexibility while recognising that organisations have different levels of influence across complex value chains and that decarbonisation pathways vary between sectors. 

To explore these changes in more detail, watch the full webinar recording or download the presentation slides. 

Greater Flexibility for Scope 1 and Scope 2 

The updated standard introduces greater flexibility in how organisations can set targets for operational emissions while strengthening expectations around direct action. Oliver explained that Scope 1 and Scope 2 targets must now be reported separately, with organisations able to choose from absolute emissions reduction targets, sector-specific intensity pathways and, for some industries, asset transition pathways. Scope 2 also introduces low-carbon electricity alignment targets, supported by new guidance on electricity procurement, market instruments and qualifying low-carbon electricity projects.