SBTi 2.0 introduces a new era of corporate climate accountability and ambitious climate action. The updated net-zero standard requires more rigorous emissions reduction targets, separates Scope 1 and 2 targets, tightens Scope 3 requirements, and mandates climate transition plans and performance validation every five years. Stakeholders and business leaders must prepare now — especially around supplier engagement, carbon removals, and beyond value chain mitigation. Pulsora’s platform is built to help you align with these new expectations.
In the face of a growing climate crisis, companies around the world are under mounting pressure to turn bold climate targets into measurable results. The Science Based Targets initiative (SBTi), a non-profit formed to anchor corporate climate action in science, has been central to this shift, helping thousands of companies chart credible paths to reduce greenhouse gas emissions.
Now, with the release of its draft Corporate Net-Zero Standard 2.0, SBTi is reshaping what it means to lead in a net-zero economy. The update doesn’t just refine SBTi criteria; it expands the scope of responsibility and requires companies to prove performance.
New methodologies emphasize the real-world impact of emissions reductions across Scope 1, 2, and 3, and push companies to move away from fossil fuel reliance and toward renewable energy, low-carbon technologies, and supplier engagement. Businesses must align with more rigorous standards for setting climate targets and preparing for long-term decarbonization, consistent with limiting global temperature rise to 1.5°C above pre-industrial levels.
For enterprise sustainability leaders and stakeholders, this represents a step-change. SBTi services are evolving from target validation alone to include ongoing assessment, transition planning, and transparent disclosure. The message is clear: to stay credible in a net-zero economy, companies must act and be able to show it.
What is SBTi?
SBTi has always set the global benchmark for what counts as a credible science-based target. Its purpose is to align corporate action with climate science and limit global temperature rise to 1.5°C.
The Science Based Targets initiative (SBTi) was created to bring scientific rigor to corporate climate action. In a world of vague net-zero pledges and inconsistent emissions claims, SBTi offered structure and accountability to climate change initiatives.
At its core, SBTi answers a critical question: how much and how fast must a company reduce its greenhouse gas emissions (or GHG emissions) to align with climate science?
By translating the goals of the Paris Agreement into sector-specific emissions reduction targets, SBTi has become the global standard for credible corporate decarbonization. Companies submit near-term and net-zero targets—focusing on Scope 1 (direct), Scope 2 (energy-related), and Scope 3 (value chain) emissions—and receive third-party validation that their plans are aligned with limiting global warming to 1.5°C.
Since its inception, nearly 11,000 companies have committed to or are setting targets. The framework prioritized deep carbon reductions over offsets and emphasized real, measurable progress over long-term promises.
Now, with the release of Version 2.0, SBTi is evolving to ensure that corporate climate strategies aren’t just ambitious—they’re verifiable, actionable, and effective.
What is SBTi 2.0 — and why it matters
Version 2.0 of the corporate net-zero standard marks a philosophical and structural shift:
- From target setting to full performance accountability
- From emissions coverage percentages to emissions relevance
- From optional plans to required, auditable climate transition plans
The update expands the framework to cover performance assessment, implementation, progress evaluation, and net-zero claims. In short, it makes corporate climate commitments measurable and enforceable.
Key changes in the new corporate net-zero standard
Validation becomes an ongoing process
SBTi 2.0 introduces a three-tier validation structure:
- Entry check
- Initial validation
- Renewal validation every five years
This shift reflects a new emphasis on performance over promises. Targets will no longer be a one-and-done activity—they must be revalidated to ensure alignment with real-world progress.
More nuanced company categories
Companies are now categorized by size and geography:
- Category A: large and medium-sized companies in high-income regions
- Category B: smaller firms and companies in lower-income countries
Category A companies face stricter requirements, including mandatory assurance and shorter deadlines to submit their science based targets.
Scope 1 and 2 targets must be separated
Where companies could previously combine Scope 1 and 2 targets, SBTi 2.0 requires separate goals. This ensures clearer accountability over direct and energy-related emissions, pushing companies to take deeper operational ownership.
Scope 3 emissions targets must focus on relevance
Forget the 67% rule. Under the revised standard, Scope 3 emissions targets must include all categories that account for 5% or more of total emissions. There's also a heightened focus on:
- Supplier engagement (100% of tier 1 suppliers in emissions-intensive activities must set SBTs by 2030)
- Non-emissions-based metrics (e.g. procurement from climate-aligned suppliers)
Carbon removal and beyond value chain mitigation (BVCM)
For the first time, the science based targets initiative introduces clearer guidance around residual emissions and carbon removal:
- Companies must set separate carbon removal targets for Scope 1 residuals
- BVCM, including high-integrity carbon credits, is recognized for ongoing emissions during transition
This brings much-needed structure to how companies incorporate carbon credits and market mechanisms into their emissions reduction targets.
What SBTi 2.0 means for corporate climate strategy
A tradeoff: shorter target cycles, higher scrutiny
Targets must now be renewed every five years. While this supports agility and accountability, it creates new challenges for companies with long-horizon climate investments. Heavy industry, infrastructure, and manufacturing sectors will need to balance ambitious decarbonization goals with practical timelines.
Climate transition plans become mandatory
Category A companies must now submit a detailed, auditable climate transition plan within one year of SBTi target validation. These plans must outline:
- Specific emissions reduction activities
- Investment strategies
- Supplier engagement models
- Timelines and governance structures
Quality and assurance take center stage
SBTi will now require limited assurance on base-year inventories and performance reporting. The era of unaudited spreadsheets is over. Companies must demonstrate credible, traceable reductions.
What companies should do now?
Already have approved targets?
Stay the course. Near-term and net-zero targets set under Version 1.2 remain valid until 2030 or the end of the target timeframe. Now is the time to:
- Begin internal alignment around climate transition planning
- Review data systems for audit readiness
- Engage suppliers for future Scope 3 compliance
Still working on your first targets?
You can still submit targets under the current standard through 2025–2026. However, enterprises should:
- Develop readiness for the upcoming climate standard
- Prioritize high-quality emissions data for Scope 1, 2, and 3
- Lay the groundwork for carbon removal and indirect mitigation strategies
How Pulsora helps enterprises lead with confidence
Pulsora is built for the rigor of SBTi 2.0. Our sustainability management platform helps enterprises:
- Centralize emissions data across scopes and business units
- Map and prioritize Scope 3 emissions by relevance
- Engage and track supplier targets and performance
- Build, manage, and report on climate transition plans
- Prepare auditable GHG inventories for assurance
- Model and incorporate carbon removals and beyond value chain mitigation
SBTi 2.0 marks a new era of credible climate leadership. With Pulsora, companies can move from ambition to execution and lead the way to a net-zero future.
See what Pulsora can do for your decarbonization strategy → book a personalized demo now!
Frequently asked questions about SBTi 2.0
What is SBTi 2.0?
SBTi 2.0 is the updated Corporate Net-Zero Standard released by the Science Based Targets initiative. It expands the framework from simple target-setting to a full performance-based system that includes implementation, progress tracking, and validation every five years. It’s designed to ensure corporate climate commitments translate into real-world emissions reductions.
How does SBTi 2.0 change Scope 3 emissions reporting?
The new standard requires companies to include all Scope 3 categories that represent 5% or more of their total emissions. It emphasizes relevance over blanket coverage and encourages the use of supplier engagement metrics and non-emissions KPIs to drive value chain decarbonization.
Do companies need to submit a climate transition plan under the new standard?
Yes. Category A companies must submit a detailed climate transition plan within one year of SBTi target validation. These plans must outline key actions, governance, investments, and supplier strategies to ensure targets are both credible and actionable.
What is beyond value chain mitigation (BVCM) and how is it treated in SBTi 2.0?
BVCM refers to mitigation efforts that go beyond a company’s direct and indirect emissions—such as purchasing high-integrity carbon credits. While not a substitute for direct reductions, SBTi 2.0 formally recognizes BVCM as a way to address ongoing emissions during the transition to net-zero.
Who’s behind the Science Based Targets initiative?
The Science Based Targets initiative (SBTi) is a collaboration between four leading climate organizations: CDP, the United Nations Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). As one of the founding partners, WWF brings deep expertise in biodiversity, conservation, and climate science to help ensure the framework aligns with global environmental goals. WWF’s involvement helps ground SBTi in both ecological urgency and scientific integrity—reinforcing the initiative’s mission to drive ambitious, science-aligned corporate climate action.
