{"id":178934,"date":"2026-07-27T07:20:00","date_gmt":"2026-07-27T05:20:00","guid":{"rendered":"https:\/\/renewable-carbon.eu\/news\/?p=178934"},"modified":"2026-07-20T14:02:34","modified_gmt":"2026-07-20T12:02:34","slug":"the-sbti-corporate-net-zero-standard-v2-what-the-final-version-changes-in-practice-for-companies","status":"publish","type":"post","link":"https:\/\/renewable-carbon.eu\/news\/the-sbti-corporate-net-zero-standard-v2-what-the-final-version-changes-in-practice-for-companies\/","title":{"rendered":"The\u00a0SBTi\u00a0Corporate Net-Zero Standard V2: What the\u00a0final version\u00a0changes in practice for\u00a0companies"},"content":{"rendered":"\n\n\n<p>The release of the final SBTi Corporate Net-Zero Standard V2 on&nbsp;11&nbsp;June&nbsp;marks the end of a long and closely watched development process. Following the publication of two drafts in 2025, the update reflects extensive stakeholder input and debate on some of the most consequential questions in corporate climate target-setting:&nbsp;<strong>how companies set,&nbsp;deliver&nbsp;and report against net-zero targets,&nbsp;taking&nbsp;responsibility for ongoing emissions.<\/strong>&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"880\" height=\"600\" src=\"https:\/\/renewable-carbon.eu\/news\/media\/2026\/07\/adobestock_1850581906-880x600-1.webp\" alt=\"\" class=\"wp-image-178946\" style=\"width:591px;height:auto\" srcset=\"https:\/\/renewable-carbon.eu\/news\/media\/2026\/07\/adobestock_1850581906-880x600-1.webp 880w, https:\/\/renewable-carbon.eu\/news\/media\/2026\/07\/adobestock_1850581906-880x600-1-300x205.webp 300w, https:\/\/renewable-carbon.eu\/news\/media\/2026\/07\/adobestock_1850581906-880x600-1-150x102.webp 150w, https:\/\/renewable-carbon.eu\/news\/media\/2026\/07\/adobestock_1850581906-880x600-1-768x524.webp 768w, https:\/\/renewable-carbon.eu\/news\/media\/2026\/07\/adobestock_1850581906-880x600-1-396x270.webp 396w\" sizes=\"auto, (max-width: 880px) 100vw, 880px\" \/><\/figure><\/div>\n\n\n<p>As with the&nbsp;previous&nbsp;versions, the Corporate Net-Zero Standard is a voluntary framework. However, V2&nbsp;raises the bar&nbsp;beyond purely target setting,&nbsp;turning what was&nbsp;previously a commitment into an ongoing performance system,&nbsp;including&nbsp;transition&nbsp;planning,&nbsp;a performance-based&nbsp;5-year&nbsp;target cycle to ensure targets reflect effective past progress&nbsp;and&nbsp;future ambition, and stronger reporting requirements&nbsp;operating on a&nbsp;best-effort basis&nbsp;and&nbsp;honest communication.&nbsp;The standard becomes more influential in shaping how companies design their climate journey,&nbsp;prepare for&nbsp;investor scrutiny, and meet disclosure and transition framework requirements.&nbsp;&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/quantis.com\/insights\/the-sbti-corporate-net-zero-standard-v2-what-the-final-version-changes-in-practice-for-companies\/#:~:text=LET%E2%80%99S%20CONNECT-,This%20article,-is%20also%20available\"><strong>Read the interactive article<\/strong><\/a><\/p>\n\n\n\n<p>To allow companies to adapt to the material changes V2 introduces,&nbsp;the standard will be rolled out&nbsp;gradually:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Until\u00a031\u00a0January\u00a02027:\u00a0<\/strong>companies\u00a0continue\u00a0setting goals using\u00a0V1.\u00a0\u00a0<\/li>\n\n\n\n<li><strong>Between\u00a01\u00a0February 2027 and\u00a031\u00a0January 2028<\/strong>:\u00a0both V1 and V2 can be used for target-setting, noting the\u00a0SBTi recommends\u00a0continuing\u00a0to use\u00a0V1\u00a0until the full\u00a0application in\u00a0February\u00a02028.\u00a0<\/li>\n\n\n\n<li><strong>From\u00a01\u00a0February\u00a02028:\u00a0<\/strong>New targets\u00a0must\u00a0follow\u00a0V2, while existing targets are expected to remain valid until the end of their target\u00a0timeframe\u00a0or their\u00a05-year\u00a0cycle.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>So what does this concretely mean for the&nbsp;10,000 companies&nbsp;that&nbsp;have engaged with SBTi?&nbsp;Let\u2019s&nbsp;look at the practical&nbsp;changes through five key questions:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>How does this impact my targets?<\/strong>\u00a0<\/li>\n\n\n\n<li><strong>How does this impact my roadmap?<\/strong>\u00a0<\/li>\n\n\n\n<li><strong>How does this impact my reporting and footprint measurement?<\/strong>\u00a0<\/li>\n\n\n\n<li><strong>Which sectors are most exposed?<\/strong>\u00a0<\/li>\n\n\n\n<li><strong>What should I do now vs later?<\/strong>\u00a0<\/li>\n<\/ul>\n\n\n\n<div style=\"height:13px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. How does this impact my targets?&nbsp;<\/strong><\/h3>\n\n\n\n<p>V2 fundamentally changes how targets are structured.&nbsp;&nbsp;<\/p>\n\n\n\n<p>First,&nbsp;companies will&nbsp;define&nbsp;their base year based on&nbsp;the&nbsp;most recent&nbsp;footprint&nbsp;year&nbsp;instead of&nbsp;past&nbsp;base&nbsp;years&nbsp;(eg.&nbsp;2018).&nbsp;Note that&nbsp;progress achieved&nbsp;under&nbsp;previous&nbsp;targets will be&nbsp;considered&nbsp;when&nbsp;defining the&nbsp;new ambition.&nbsp;Companies may&nbsp;also&nbsp;continue&nbsp;communicating progress relative to their original baseline externally, but official targets&nbsp;will&nbsp;reflect&nbsp;current emissions, ensuring ongoing alignment with net-zero pathways as the business&nbsp;evolves.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Beyond&nbsp;the base year, what&nbsp;was&nbsp;previously two targets, Scope 1&nbsp;and&nbsp;2 combined and Scope 3, now becomes a minimum of three: separate targets for Scope 1, Scope 2, and Scope 3, making each scope independently visible and accountable. Within each scope, the logic changes and targets can be further divided by category,&nbsp;activity&nbsp;or emission source, especially in Scope 3.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Scope\u00a01<\/strong>\u00a0now\u00a0requires a 100%\u00a0coverage of emissions\u00a0and\u00a0has\u00a0three target-setting pathways available:\u00a0absolute\u00a0emissions reduction,\u00a0emissions\u00a0intensity\u00a0reduction\u00a0and\u00a0asset\u00a0transition.\u00a0<\/li>\n\n\n\n<li><strong>Scope\u00a02<\/strong>\u00a0becomes\u00a0standalone\u00a0preventing Scope 1\u00a0transition delay, also\u00a0requiring a 100%\u00a0coverage\u00a0and\u00a0with\u00a0two target-setting options available:\u00a0absolute\u00a0emissions reduction\u00a0in line with the net-zero\u00a0electricity\u00a0pathway\u00a0or\u00a0low-carbon electricity alignment\u00a0through high-credibility renewable procurement.\u00a0<\/li>\n\n\n\n<li><strong>Scope 3<\/strong>\u00a0target setting\u00a0becomes more\u00a0flexible\u00a0with\u00a0three approaches available,\u00a0of which\u00a0some can\u00a0be\u00a0combined:\u00a0two overarching options\u00a0\u2014\u00a0absolute\u00a0emissions reduction covering all Scope 3 or\u00a0supplier\/customer\u00a0alignment targeting tier 1 counterparties setting SBTs\u00a0and\u00a0one\u00a0category-specific targets tailored per source.\u00a0For\u00a0the\u00a0category-specific\u00a0option, companies focus on significant categories (\u22655% of total Scope 3), using quantitative targets for priority commodities\/transport and alignment for other categories, while smaller sources\u00a0remain\u00a0excludable from target\u00a0boundary.\u00a0<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/quantis.com\/wp-content\/uploads\/2026\/06\/sbti-updates-1.webp\" alt=\"\" class=\"wp-image-22265\" style=\"width:670px;height:auto\"\/><\/figure><\/div>\n\n\n<p>The practical consequence: target-setting shifts from submitting a single commitment to managing separate targets for each scope \u2014 with companies&nbsp;able to choose&nbsp;for their&nbsp;Scope&nbsp;3 targets&nbsp;between&nbsp;overarching approaches,&nbsp;providing broader&nbsp;options for mitigation&nbsp;or&nbsp;more granular category-specific targets&nbsp;on a subset of emissions&nbsp;based&nbsp;on their business&nbsp;priorities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. How does this impact my roadmap?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>V2 brings target-setting closer to delivery planning.&nbsp;Under V1, the main focus was on the targets themselves, while the delivery plan remained unchecked.&nbsp;Under V2, companies are now expected not only to set targets, but also to deliver against those targets&nbsp;through&nbsp;a clear&nbsp;<strong>transition plan<\/strong>.&nbsp;&nbsp;<\/p>\n\n\n\n<p>V2 also introduces an&nbsp;<strong>implementation hierarchy:<\/strong>&nbsp;companies must prioritize direct action (engaging suppliers, reducing at&nbsp;the&nbsp;source), then&nbsp;activity-pool actions (shared systems like grids, supply sheds)&nbsp;when direct action is not&nbsp;feasible,&nbsp;and finally&nbsp;sector-level actions when structural constraints exist.&nbsp;&nbsp;<\/p>\n\n\n\n<p>SBTi&nbsp;target&nbsp;definition&nbsp;becomes&nbsp;less of a&nbsp;pure&nbsp;target-setting exercise and more of a transition management exercise. The key question is no longer only \u201cwhat is our ambition?\u201d but \u201cwhat is our plan, what counts as progress, and how do we prove it?\u201d&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. How does this impact my reporting and footprint measurement?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>V2 makes measurement and reporting more structured,&nbsp;specific&nbsp;and auditable.&nbsp;The inventory coverage&nbsp;goes to&nbsp;100%, removing the previously authorized 5% exclusion.&nbsp;&nbsp;<\/p>\n\n\n\n<p>When it comes to the targets, Scope 1 and Scope 2 targets must cover 100%,&nbsp;but Scope 3&nbsp;target&nbsp;boundary&nbsp;flexibility&nbsp;remains&nbsp;flexible&nbsp;for&nbsp;categories &lt;5%.&nbsp;Companies also need to&nbsp;identify&nbsp;and quantify EIAs (Emissions-Intensive Activities).&nbsp;&nbsp;<\/p>\n\n\n\n<p>Regarding disclosure, all&nbsp;companies must&nbsp;now&nbsp;publish their baseline emissions and targets within six months of validation.&nbsp;Category&nbsp;A companies&nbsp;must&nbsp;also&nbsp;publish&nbsp;their&nbsp;climate transition plan&nbsp;either&nbsp;at validation or within 15 months&nbsp;at&nbsp;the&nbsp;latest.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Furthermore,&nbsp;the&nbsp;annual&nbsp;progress&nbsp;reporting now&nbsp;goes beyond&nbsp;simply sharing the&nbsp;footprint&nbsp;evolution and performance. It&nbsp;requires companies to explain&nbsp;the&nbsp;barriers,&nbsp;gaps&nbsp;and corrective actions&nbsp;to ensure progress,&nbsp;and both the&nbsp;footprint&nbsp;and&nbsp;progress report&nbsp;is&nbsp;audited&nbsp;by a third&nbsp;party&nbsp;for&nbsp;Category A companies.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Reporting&nbsp;is no longer&nbsp;just about disclosure. It becomes how companies prove that their targets, transition&nbsp;plan&nbsp;and claims are credible over time.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Which sectors are most exposed?<\/strong>&nbsp;<\/h3>\n\n\n\n<p>While&nbsp;the Net-Zero&nbsp;Standard&nbsp;is cross-sectored, it will not affect all sectors in the same way. For some companies and sectors, it will mean a substantial redesign of targets, delivery plans, footprint&nbsp;measurement&nbsp;and reporting.&nbsp;For others, the changes may be more limited, especially for companies that have already made meaningful progress on decarbonization&nbsp;and&nbsp;will face a lighter transition.<\/p>\n\n\n\n<p>Here are some key shifts for&nbsp;highly exposed&nbsp;sectors:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Hard-to-abate industry<\/strong>\u00a0<strong>(steel, cement, aluminum, chemicals):\u00a0<\/strong>with Scope 1 requiring 100% coverage and available pathways, the focus will be on fossil transition,\u00a0e.g.\u00a0through Asset Decarbonization Plan, managing capex phasing and declining carbon budgets.\u00a0<\/li>\n\n\n\n<li><strong>Heavy electricity users<\/strong>\u00a0<strong>(data centers, manufacturing):\u00a0<\/strong>with Scope 2\u00a0aligned with electricity sector net-zero pathways\u00a0and stricter integrity requirements, the focus shifts to upgrading renewable procurement strategies beyond basic RECs toward higher-quality certificates and\/or PPAs.\u00a0<\/li>\n\n\n\n<li><strong>Diversified upstream Scope 3 (retailers, F&amp;B, fashion):<\/strong>\u00a0companies choosing\u00a0the\u00a0category-specific\u00a0approach\u00a0will have to\u00a0build\u00a0procurement-led strategies with granular supplier engagement at commodity\u00a0level.\u00a0Note that FLAG\u00a0remains\u00a0in application\u00a0for ag value chains.\u00a0<\/li>\n\n\n\n<li><strong>Companies with material sold-product emissions (e.g.\u00a0electronics, appliances):<\/strong>\u00a0with product-use becoming an explicit target requirement, companies must integrate efficiency, phase-out and circularity into product strategy and R&amp;D.\u00a0<\/li>\n<\/ul>\n\n\n\n<p>The overall direction does not&nbsp;change:&nbsp;credible action toward net-zero by 2050 at the latest, with companies expected not only to set targets, but also to act on them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. What should I do now vs later?<\/strong>&nbsp;<\/h3>\n\n\n\n<p><strong>If you have valid targets through 2027 or beyond:<\/strong>&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Focus on delivering and achieving your current targets\u00a0<\/li>\n\n\n\n<li>Understand V2\u2019s requirements to prepare for eventual renewal\u00a0<\/li>\n\n\n\n<li>Start building capabilities (cross-functional alignment, Scope 3 data systems, internal communication) that will ease transition when your targets come up for renewal\u00a0<\/li>\n<\/ul>\n\n\n\n<p><strong>If&nbsp;you\u2019re&nbsp;setting new targets soon:<\/strong>&nbsp;<\/p>\n\n\n\n<p>SBTi recommends continuing with V1&nbsp;and not&nbsp;delaying&nbsp;target-setting. V1 offers&nbsp;flexibility&nbsp;(combined Scope 1&nbsp;and&nbsp;2 targets, Scope 3 boundary options, lighter assurance)&nbsp;and&nbsp;your&nbsp;targets will remain valid for their full cycle;&nbsp;you&nbsp;will&nbsp;then transition to V2 for the&nbsp;subsequent&nbsp;cycle.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Define and\u00a0submit\u00a0your targets\u00a0using V1\u00a0<\/li>\n\n\n\n<li>Prepare for eventual V2 transition by\u00a0mapping\u00a0your\u00a0current\u00a0targets\u00a0against V2\u2019s requirements\u00a0(separate scope targets, implementation hierarchy, transition planning)\u00a0<\/li>\n<\/ul>\n\n\n\n<p><strong>Over time:<\/strong>&nbsp;build&nbsp;the capabilities V2 will require,&nbsp;i.e.&nbsp;delivery planning, cross-functional alignment, and communication frameworks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The release of the final SBTi Corporate Net-Zero Standard V2 on&nbsp;11&nbsp;June&nbsp;marks the end of a long and closely watched development process. Following the publication of two drafts in 2025, the update reflects extensive stakeholder input and debate on some of the most consequential questions in corporate climate target-setting:&nbsp;how companies set,&nbsp;deliver&nbsp;and report against net-zero targets,&nbsp;taking&nbsp;responsibility for [&#8230;]<\/p>\n","protected":false},"author":59,"featured_media":178946,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","nova_meta_subtitle":"What does the Net-Zero Standard V2 concretely mean for the\u00a010,000 companies\u00a0that\u00a0have engaged with SBTi?","footnotes":""},"categories":[5572],"tags":[27082,22310],"supplier":[24458],"class_list":["post-178934","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bio-based","tag-climateprotection","tag-netzero","supplier-science-based-targets-initiative-sbti"],"_links":{"self":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/178934","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/comments?post=178934"}],"version-history":[{"count":2,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/178934\/revisions"}],"predecessor-version":[{"id":178971,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/posts\/178934\/revisions\/178971"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/media\/178946"}],"wp:attachment":[{"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/media?parent=178934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/categories?post=178934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/tags?post=178934"},{"taxonomy":"supplier","embeddable":true,"href":"https:\/\/renewable-carbon.eu\/news\/wp-json\/wp\/v2\/supplier?post=178934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}