SBTi Seeks Feedback for Corporate Net-Zero Standard Updates

• Content
• Environment & Sustainability
• SBTi Seeks Feedback for Corporate Net-Zero Standard Updates

27 March 2025

The Science Based Targets initiative is seeking feedback on new proposals to change how companies set & deliver net-zero targets.

 

Watch the Video

 

 

The Corporate Net-Zero Standard Version 2.0 will be the newest iteration of the Corporate Net-Zero Standard, which was first published in 2021. It is intended that from 2027, companies will use the new version to set new near-term and long-term targets.

 

Why is the Standard Being Updated Now?

 

The last decade has been the warmest on record, with extreme weather events such as wildfires, floods, droughts and heatwaves. To align with the latest climate science, the SBTi is looking to revise its corporate standard. 

 

Splitting Out Scope 1 and Scope 2 Emissions

 

The new standard will split out Scope 1 and Scope 2 emissions, for more transparent carbon reporting. Scope 1 and Scope 2 emissions have different reduction strategies and approaches, so this change will allow businesses to set clearer reduction targets for each category.

It will also allow businesses to make better distinctions where they can take direct action to reduce emissions (Scope 1) or where  better supply chain engagement is needed (Scope 2).

 

Separating Companies Based on Size and Geography

 

The new standard also splits businesses into two categories. Category A companies (large and medium-sized companies operating in higher-income geographies) are required to follow all criteria. Category B companies (small and medium-sized companies operating in lower-income geographies) are offered increased flexibility by making some criteria optional. 

Under the current standard, companies only needed to set Scope 3 targets if these emissions made up at least 40 per cent of total emissions. Now, all Category A companies must set Scope 3 targets, while they remain optional for Category B companies.

 

New Options for Tackling Scope 3 Emissions Reductions

 

The previous requirement to cover 67 per cent of Scope 3 emissions for near-term targets and 90 per cent for long-term targets has been replaced. Instead, companies are encouraged to focus on the most emission-intensive activities and those where they have the most influence, such as Tier 1 suppliers.

 

Addressing Unabated and Residual Emissions

 

The new draft standard recognises the significance of unabated emissions (those that companies cannot eliminate within their own operations or value chains due to technological or economic constraints) and residual emissions (emissions that remain after all feasible abatement measures have been implemented). 

The standard proposes integrating high-quality carbon removals into corporate strategies, as companies will inevitably have some level of residual emissions by their net-zero target year.

The public consultation will run from Tuesday 18 March - Sunday 1 June.

Picture: a graphic showing a clipboard with a paper checklist, some pens, a phone and a cup of coffee. A hand can be seen marking a tick on the checklist. Image Credit: Pixabay

Article written by Ella Tansley | Published 27 March 2025

Share

---

---

Related Articles

---