SBTi Releases Version 2.0 Draft of the Corporate Net-Zero Standard
Here’s What You Need to Know
31st March 2025
Insights
The Science Based Targets Initiative (SBTi) has released a new draft of its Corporate Net-Zero Standard for public consultation. Following a robust review process, this updated version (“Version 2.0,” published March 2025) includes proposed new requirements that will affect how businesses set, track and adjust their near-term and net-zero targets.
Overall, Version 2.0 emphasises action and aims to provide more flexible pathways for companies to reduce their greenhouse gas emissions by 2050 or sooner. These pathways include tailored requirements based on business size and location, adjusted criteria for target setting and emissions mitigation across all scopes, a greater focus on carbon removals and recognition of mitigation efforts beyond a company’s value chain.
Key Changes and Implications
Version 2.0 is structured into six chapters, the first covering criteria for net-zero commitments and transition plans, and the following five focusing on criteria that supports a “continuous improvement” cycle across GHG inventories, and target setting, assessing, and updating. Collectively, this structure puts forth a new validation model intended to facilitate ongoing improvement throughout a company’s transition to net-zero.
Of note are key changes in seven core areas:
Categorisation
The draft introduces a new categorisation of businesses based on size and geography, and tiers requirements accordingly. The company size categorisation is guided by EU regulatory definitions and the geographical categorisation is based on the World Bank classification.
Commitments & Transition Plans
Large companies and those located in certain high-income countries will no longer be allowed to set near-term targets without also setting a net-zero target for 2050, at the latest. Version 2.0 also proposes a requirement for these companies to publish climate transition plans following validation of their targets by SBTi.
Greenhouse Gas (GHG) Inventories
Version 2.0 introduces several changes to GHG emissions inventories, with a focus on consolidation approach, base-year selection and performance, Scope 3 emissions , and ensuring data quality of the inventory, including through a new requirement for third party assurance.
Targets
Notably, Version 2.0 proposes that SBTi no longer allow for a range of target time periods to be adopted. Instead, near-term targets will be set on 5-year timeframes. Additionally, separate 1.5°C aligned targets will be required for each Scope (no more combined Scope 1 and 2 targets), companies will be required to set location-based as well as market- based scope 2 targets, and Version 2.0 provides some additional flexibility and options on Scope 3 target setting and mitigation.
Ongoing & Residual Emissions, BVCM, and Removals
SBTi is currently considering different options for companies to address residual Scope 1 emissions, either by mandating removal targets or offering greater flexibility in removal pathways. Version 2.0 indicates an acceleration in SBTi’s treatment of removals and may help to build the removals market.
Regarding Beyond Value Chain Mitigation (BVCM), Version 2.0 provides optional and additional pathways for companies to seek recognition of their reduction efforts, however BVCM will continue to not count towards the achievement of science-based targets.
Progress Against Targets
A core objective of Version 2.0 is to integrate continuous improvement and assessment of progress against set targets by introducing an assessment and communication of progress requirement to enhance accountability and recognise companies leading on decarbonisation.
Claims
Version 2.0 significantly expands on guidelines for companies to use when communicating about commitments and target validation, pushing for consistent, transparent, and accurate claims.
What This Means for You
Setting Targets Today and the Status of Existing Targets
While these proposed changes will surely affect future target setting, companies setting targets in 2025 and 2026 will use the current SBTi criteria, setting targets that will be valid for 5 years or until 2030 (at which time new targets will be set using Version 2.0). Starting in 2027, Version 2.0 will be required to be used for new target setting.
Meanwhile, existing near-term targets are expected to remain valid until 2030 or their end date, whichever comes first.
The Public Consultation Period
The Science Based Targets initiative (SBTi) is seeking feedback on Version 2.0 from March 18th to June 1st, 2025. This is a chance for all businesses to review the draft and provide input to help shape the final version. This feedback will ensure the standard is effective in promoting corporate ambition towards a net-zero future.
If your business has existing or planned near-term or net-zero targets, participating in this consultation is highly recommended. Additionally, if you want more influence on the final standard, consider joining SBTi’s pilot testing in the second half of 2025.
How Anthesis Can Help
Anthesis encourages companies to continue their decarbonisation journeys and to account for annual unavoidable emissions via carbon credits and projects. We offer comprehensive support to organisations throughout the inventory, target-setting, revalidation, and decarbonisation process, and throughout their net-zero journey. We also support companies and organisations through investing in high-quality carbon removal projects.
Partnering with Anthesis ensures that your organisation’s SBTs remain credible, ambitious, and aligned with the latest climate science, mitigating your climate risk and ensuring your business’ future relevancy and resiliency in a net-zero economy.
Explore our services
Learn more about how we deliver decarbonisation, net zero and carbon market expertise to support sustainable transformation.
We are the world’s leading purpose driven, digitally enabled, science-based activator. And always welcome inquiries and partnerships to drive positive change together.
