SBTi Net-Zero Standard 2.0: What Changed and What to Do Next

SBTi’s new Corporate Net-Zero Standard Version 2.0 is a more practical, implementation-focused update to the earlier standard (Version 1.3, referred to here as the earlier standard). It keeps the same core direction of travel towards net zero by 2050 or sooner, but adds stronger requirements on governance, transition planning, progress checks and how companies can credibly use market instruments.

For most companies, the main message is simple: the earlier standard was mainly about setting targets, while Version 2.0 is much more about proving how those targets will be delivered and tracked over time.

SBTi Standard Main changes

Topic	Earlier standard (v1.3)	Version 2.0
Core emphasis	Focused mainly on target structure, coverage, ambition and net-zero definition.	Adds governance, transition planning, implementation and end-of-cycle assessment.
Company differentiation	Mostly one common framework, with limited flexibility for SMEs and sectors.	Splits companies into Category A and Category B, with lighter requirements for smaller firms and some companies in lower-income markets.
Scope 1	Allowed absolute and sector methods.	Keeps those methods and adds an asset-transition route for emissions-intensive capital stock.
Scope 2	Could be combined with scope 1 and generally relied on annual matching for renewable electricity claims.	Requires more explicit scope 2 treatment, tighter rules for electricity instruments and greater emphasis on hourly matching disclosure.
Scope 3	Used percentage coverage thresholds, such as 67% for near-term coverage and 90% for long-term coverage.	Moves towards relevance-based boundaries and offers broader target types, including supplier/customer alignment and category-specific approaches.
Delivery model	Less explicit on what counts as credible implementation.	Introduces an implementation hierarchy: direct action first, then shared-system action, then sector-level action where needed.
Progress and assurance	Validation at target setting, with fewer structured checks during delivery.	Adds periodic assessment, stronger disclosure and assurance expectations, especially for Category A companies.

What companies should do

1. Confirm whether the business is likely to fall into Category A or Category B under Version 2.0, because this affects scope 3, assurance and disclosure expectations.
2. Upgrade the greenhouse gas inventory so it is complete, recent and assurance-ready, especially if the company is large.
3. Build or refresh a transition plan that links targets to procurement, capital expenditure, operations and supplier engagement, because this is now central rather than optional.
4. Reassess scope 3 using a relevance lens, not only the old percentage coverage logic, particularly for major upstream and downstream emissions sources.
5. Review electricity procurement and market instruments against the new integrity rules, especially if the company relies heavily on certificates or contractual instruments.
6. Set up annual progress reporting and governance oversight so the company is ready for end-of-cycle assessment under the new model.

By when

Version 2.0 was released in June 2026 and is scheduled to take effect for target validations from 1 February 2027. SBTi says Version 1 will remain open for setting targets until the end of 2027, which gives companies a transition window rather than an immediate hard stop.

In practice, companies already working towards 2030 targets can usually continue with the earlier standard for the current cycle, but should prepare to use Version 2.0 for the next target cycle, especially for 2030-2035 planning. The best near-term move is to start aligning governance, transition plans, inventory quality and scope 3 analysis now, even if the next formal submission still uses the earlier standard.

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Sources

• SBTi Corporate Net-Zero Standard Version 2.0
• SBTi: The Corporate Net-Zero Standard Development
• Watershed overview of SBTi CNZS 2.0
• Bloom ESG on implementation hierarchy and market instruments