Our thinking

SBTi’s updated corporate net-zero standard

28 March, 2025

Several years ago, the corporate net zero landscape was routinely likened to the ‘Wild West’ for its lack of accountability, clarity and consistency. 

The release of the Science-Based Targets initiative’s (SBTi) Corporate Net-Zero Standard in October 2021 did much to clear that up with a credible standard for what corporate net zero alignment means. Plenty has changed since then including for corporate net zero – many companies are approaching the end of their target periods, and the focus is (or at least should be) shifting from ambition to progress. And of course, climate-related crises are only intensifying.

The SBTi has now published a draft of its second version of the standard, aiming to reflect these developments by creating a “new validation model that provides and end-to-end framework for incentivising and recognising credible climate action”. This includes a greater focus on implementation, requiring climate transition plans within a year of validated targets, progress against targets to be validated by the SBTi and moving from standalone target setting to a cycle.

It also increases robustness (such as requiring assurance of GHG inventory data and interim targets) while reflecting nuance (such as through more flexible types of target and thresholds for emissions coverage). And it aims to ultimately build clarity too, with scope 2 and the treatment of residual emissions being key focus areas.

This draft guidance represents an important next step for continuing to build the robustness of and accountability for net zero. It’s certainly become more complex and onerous, but driving transformation is not easy. We’re looking forward to fully digesting the details and implications in the coming weeks as we prepare our consultation response. If you have any questions, feel free to reach out to the team.

By Patrick Bapty