SUMMARY

  • SBTi Corporate Net Zero Standard Version 2.0 introduces mid-term targets, sector-specific flexibility, and stronger reporting for transparent, science-based climate action.
  • The update prioritizes beyond value chain mitigation, supports emerging markets and SMEs, and aligns all pathways with the latest IPCC climate science.
  • Companies must enhance emissions tracking, set ambitious targets, and disclose climate transition plans to meet new accountability and leadership standards.

 

What is Version 2.0 of the SBTi Corporate Net Zero Standard?

Version 2.0 of the SBTi Corporate Net Zero Standard is the latest draft update from the Science Based Targets initiative, released in March 2025. It serves as an enhanced framework for companies aiming to set robust, science-based targets for greenhouse gas (GHG) reduction in line with the goal of limiting global warming to 1.5°C. This update addresses feedback from businesses and stakeholders globally to overcome challenges like transparency, feasibility, and flexibility found in Version 1.0, initially launched in 2021.
This updated version introduces new practices such as intermediate milestones, sector-specific target frameworks, and improved reporting measures, making it easier for companies across varying industries and geographies to adopt workable net-zero strategies..

 

Major Revisions in SBTi CNZS Version 2.0

For most agriculture-linked companies, farm-level activities (Scope 1 / Scope 3) account for a significant share — often more than 70% — of total emissions. However, many rely on default or regionally averaged emissions factors, which miss critical differences between crops, practices, and geographies.

  1. Intermediate Milestones for Long-Term Goals
    • Companies must now include new "mid-term targets" (e.g., for 2040), enhancing visibility into their progress. Previously, only near-term (5–10 years) and long-term (by 2050) targets were mandated, limiting transparency.
  2. Prioritizing Beyond Value Chain Mitigation (BVCM)
    • Version 2.0 recommends minimum implementation thresholds for activities like investing in renewable energy and reforestation projects outside the direct value chain, making BVCM integral to climate strategies.
  3. Sector-Specific Target Flexibility
    • Industries facing technological or resource challenges, such as aviation and cement, can now adopt reduction targets tailored to their sector’s unique capacities and constraints.
  4. Data Reporting Enhancements
    • Stronger protocols for consistent and transparent reporting now require companies to include accurate Scope 3 (value chain) emissions. These measures aim to align reporting with global standards and mitigate data inconsistencies.
  5. Consideration for Emerging Markets and SMEs
    • Startups and businesses in emerging markets can simplify their compliance through tailored guidelines, lighter reporting requirements, and adaptable standards.
  6. Stronger Recognition for BVCM Leadership
    • Recognition is now given to companies that go above their value-chain targets, offering reputational and operational incentives for businesses investing heavily in global sustainability.
  7. Updated Science Alignment
    • All pathways developed under Version 2.0 are aligned with the IPCC’s Sixth Assessment Report for maintaining a 1.5°C trajectory. This ensures benchmarks are up to date with the latest climate science.
  8. Refined Metrics on Residual and Removal Targets
    • Greater requirements for the durability of carbon removals and managing residual emissions more effectively have been outlined to ensure lasting impact.
  9. Improved Public Accountability
    • Companies are now expected to draft and disclose their climate transition plans within 12 months of target validation, enhancing transparency and trust across stakeholders.

 

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Implications for Companies

To effectively prepare for the SBTi Corporate Net Zero Standard Version 2.0, businesses must first take a proactive approach to understanding the updated guidance and its implications. 
They should:

  • Assess current Scope 1, 2, and 3 emissions and improve data collection and reporting processes for accuracy.
  • Use AI-driven tools to enhance emissions tracking and simplify data integration across all operations.
  • Set ambitious, science-based targets that align with the new framework and meet stakeholder expectations.
  • Engage internal teams and supply chain partners to ensure alignment on climate objectives.
  • Communicate sustainability goals and progress transparently to build trust with stakeholders.
  • Identify and address gaps in your current climate strategy to align with the revised standard.
  • Conduct scenario analyses and risk assessments to validate decarbonization pathways.
  • Commit to ongoing preparation and collaboration to meet SBTi guidelines and strengthen your position as a sustainability leader.

By preparing effectively for these changes, companies can solidify their leadership roles in sustainability and confidently present themselves as forward-thinking, environmentally responsible players in their industries. With the right tools and strategies, sustainability professionals can drive impactful change towards a greener future.

Terrascope’s platform and expert advice can support you in visualising your emissions, planning for decarbonisation and managing progress towards setting, then validating your SBTi targets, in the context of V2.0 of the SBTi’s CNZS.

Contact us here for a free demo or to set up a first, obligation-free session of our available workshops.

Want to explore what this could look like for your supply chain? Get in touch with us.