What does the updated SBTi Corporate Net-Zero Standard mean for your business?

The Corporate Net-Zero Standard is the SBTi’s framework for helping companies set science-based targets in line with reaching net-zero by 2050 at the latest.

Since 2021, more than 11,000 companies and financial institutions have used the Standard to set science-backed climate targets.

Now, following a rigorous development process – including two public consultations and pilot testing with hundreds of companies – The Corporate Net-Zero Standard V2.0 has arrived.

Let’s look at what’s new and what this means for your business.

How is 2.0 different from the original?

The main changes to the previous standard include:

• A transition from a dedicated SME pathway to a risk- and size-based framework: The standalone SME pathway has been replaced with a company categorisation model, with requirements tailored to different company types. This aims to create a more proportionate approach while introducing enhanced requirements for larger organisations.

• Greater emphasis on assurance and accountability: There is now greater focus on independent assurance, including verification of emissions inventories and progress against targets. This is intended to improve credibility, transparency and accountability.

• Stronger focus on governance and delivery plans: Companies will need to demonstrate how climate action is governed within the organisation and how targets will be delivered in practice. This includes documented transition plans outlining decarbonisation actions, responsibilities and progress monitoring.

• Increased flexibility in target-setting across all emissions scopes: A broader range of target-setting approaches has been introduced to reflect different business models and emissions profiles. Companies will also be required to set separate targets for Scope 1, Scope 2 and Scope 3 emissions.

• Creation of a decarbonisation action hierarchy: A new implementation hierarchy prioritises actions that deliver direct emissions reductions within a company’s operations and value chain. This is designed to place greater focus on real-world decarbonisation before relying on wider market mechanisms.

• Recognition for organisations undertaking Scope 2 hourly matching: A new recognition framework has been put in place for organisations adopting hourly electricity matching, moving beyond traditional annual matching approaches. This is intended to promote more transparent Scope 2 reporting and encourage better alignment between electricity consumption and low-carbon generation.

• Enhanced expectations for residual emissions and carbon removal activities: There are more specific requirements regarding the treatment of residual emissions at net-zero. Companies will also be encouraged to support the scaling of high-quality carbon removals from 2035 onwards, alongside deep emissions reductions.

What does this mean in practice?

Back in 2021, the first Corporate Net-Zero Standard helped define net-zero on a common, science-based footing.

V2.0 shifts the emphasis to what happens after validation – implementation, evidence and accountability.

Targets now come with transition planning expectations, annual progress reporting and re-assessment of ambitions – making validation part of a continuous cycle.

What happens next?

Targets can be submitted for validation under Version 2.0 from Q1 2027, so there’s time to prepare. Exploring the Standard and the supporting resources now will help your business build internal capability and approach submission with confidence.

Inspired’s ESG experts can help you navigate these changes. We can assess how Version 2.0 affects your current targets, identify gaps in your data or governance, develop meaningful transition plans and guide you through preparing a submission – placing you on a strong footing when the validation window opens.

Our support does not end there either. With hourly matching now recognised under the updated Standard, our procurement team can help you align your consumption with low-carbon generation from the outset.

Moreover, our optimisation experts can deliver decarbonisation and energy saving solutions that bring your transition plan to life.