The Science Based Targets initiative (SBTi), a leading standard-setter for corporate climate goals, released a fresh 97-page draft of its updated Corporate Net-Zero Standard V2.0 on November 6, offering companies wider flexibility on target setting while introducing stricter requirements for ongoing emissions.
The proposed revisions will not become mandatory until 2028, although the SBTi plans to publish the final version in 2026.
In the meantime, business stakeholders have until December 8 to provide input on this iteration.
Key changes include new recognition classes (“Recognized” and “Leadership”) for companies moving to address ongoing emissions, and well-defined pathways for tackling Scope 1, 2 and 3 emissions.
To qualify for “Leadership” firms would need to impose a carbon price of at least $80 per metric ton of carbon dioxide equivalent (CO2e) on their entire ongoing emissions and devote at least 40% of the proceeds to mitigation activities.
Relevant: SBTi Sees Global Surge In Science-Based Climate Targets Led by Asia And Key Industries
Additionally, this second draft clarifies how companies can set Scope 3 emission reduction targets—either via an emissions intensity metric for commodities or by committing to source 95% of inputs from suppliers who are themselves aligned with net-zero by 2050.
The overhaul comes amid criticism that many corporate net-zero commitments lack substance, relying on offsets or vague plans.
With nearly 12,000 companies currently using SBTi guidance and roughly 2,200 already validated for net-zero by 2050 or sooner, the draft marks a significant shift in expectations for corporate decarbonization.
By tightening standards and delaying mandatory adoption, the SBTi aims to balance ambition with practicality—while signaling a move away from offset-heavy strategies in favor of direct emissions reductions and credible removal pathways.
Read more: SBTi Opens Door To Carbon Removal, Releases Net-Zero Standard For Public Consultation
