SBTi 2.0: from setting targets to delivering results

Over the past few years, science-based targets have become the benchmark for credible corporate climate action. Thousands of organizations have committed to reducing emissions in line with climate science, helping shift the conversation from ambition to accountability.

Now, the Science Based Targets initiative (SBTi) has released its Corporate Net-Zero Standard Version 2.0, marking one of the most significant updates since the framework was first introduced. While the core objective remains the same, achieving net zero in line with climate science, the new standard places much greater emphasis on implementation, transparency and measurable progress.

In simple terms, SBTi 2.0 is no longer just about setting ambitious targets. It is about demonstrating how those targets will be achieved.

What’s changing?

One of the biggest changes is the move from a one-size-fits-all approach to a more practical, risk-based framework. Companies are now classified into Category A and Category B based on their size, turnover and geography. Larger organizations face more comprehensive reporting and target-setting requirements, particularly for Scope 3 emissions.

Another major development is the way Scope 3 targets are determined. Instead of requiring companies to cover a fixed percentage of their Scope 3 emissions, the updated framework focuses on material emissions. Organisations are expected to identify the activities that contribute most significantly to their carbon footprint and prioritise action where it will have the greatest impact.

This change encourages companies to focus on meaningful emissions reductions rather than simply meeting numerical reporting thresholds.

Greater focus on accountability

SBTi 2.0 also introduces stronger expectations around progress reporting.

Organisations are expected to regularly disclose their emissions performance, explain barriers to implementation and demonstrate how they are progressing towards their climate commitments.

The emphasis has shifted from making long-term promises to providing evidence of continuous action.

Transition planning has also become more important. Companies seeking validation are expected to develop credible climate transition plans that outline how emissions reductions will be achieved through governance, investment, operational improvements and business strategy.

Scope 2 and beyond

The updated standard introduces greater flexibility for Scope 2 reporting while maintaining environmental integrity. New guidance covers renewable electricity procurement, power purchase agreements (PPAs), generator age and reporting expectations for electricity consumption.

At the same time, the concept previously known as Beyond Value Chain Mitigation (BVCM) has evolved into Ongoing Emissions Responsibility (OER). Rather than viewing climate contributions as optional, the framework encourages organizations to progressively take responsibility for emissions that remain while they continue their decarbonization journey.

What does this mean for businesses?

Companies with existing validated targets do not need to make immediate changes. SBTi has introduced a transition period, allowing organisations time to prepare before Version 2.0 becomes the primary validation framework.

However, businesses should not wait until the new requirements become mandatory. Strengthening emissions data, improving supplier engagement, reviewing governance structures and developing robust transition plans today will make future compliance significantly easier.

Organisations that already have strong carbon accounting systems and reliable Scope 3 data will be well positioned for the next phase of science-based target setting.

Looking ahead

SBTi 2.0 reflects the growing maturity of corporate climate action. Setting a target remains an important first step, but long-term credibility now depends on consistent delivery, transparent reporting and measurable progress.

As investor expectations, regulatory requirements and stakeholder scrutiny continue to increase, organisations that integrate climate action into everyday business decisions will be better equipped to navigate the transition to a low-carbon economy.

Science-based targets are no longer simply a commitment for the future. They are becoming a framework for demonstrating climate leadership today.