On June 11, 2026, the Science Based Targets initiative (SBTi) published the final Version 2.0 of its Corporate Net-Zero Standard. It is the most comprehensive SBTi framework for corporate climate action to date. More than 11,000 companies have already set science-based targets through the SBTi. V2.0 builds on this experience and realigns the standard to create a practical framework for target setting.
What's new in V2.0?
At its core, V1 was a target-setting standard: commit to net zero, set a near-term and a long-term target, and neutralize the remaining residual emissions at the net-zero date.
V2.0, by contrast, is an implementation and improvement framework. It segments companies (Category A and B), separates Scope 1 and Scope 2, replaces the rigid Scope 3 coverage with a materiality test, introduces an implementation hierarchy and Ongoing Emissions Responsibility, and adds governance, transition plans and third-party assurance.
According to the SBTi's Main Changes Document, 42% of the sections in V2.0 are entirely new and 58% have been revised or expanded.
Key changes for industrial companies at a glance
1. Company categorization (Category A vs. B)
V2.0 of the standard differentiates requirements even more clearly by company size and geographic location, divided into Category A and Category B.
Category A covers companies in high-income countries if their Scope 1 and Scope 2 emissions are at least 10,000 tCO₂e or if they meet at least two of the following three criteria:
- Total assets: ≥ €25 million
- Net revenue: ≥ €50 million
- Employees (FTE): ≥ 250
For most mid-sized and large industrial companies in Europe, Category A is therefore the relevant one.
For Category B (smaller companies in lower-income countries), several requirements are optional, including transition plan disclosure, assurance of base year data and Scope 3 target setting.
2. New target-setting methods for Scope 1, 2 and 3
Scope 1 and Scope 2 will now be considered separately, each with 100% coverage for near-term and long-term targets.
For Scope 3, a new materiality test applies to the coverage of near-term targets: all categories that account for 5% or more of Scope 3 must be included. Scope 3 target setting remains mandatory for Category A companies and optional for Category B companies.
Companies can choose from several science-based methods that fit their own context:
- Scope 1: Absolute reduction, intensity targets or asset transition targets (decarbonization of individual assets along science-based milestones).
- Scope 2: Absolute reduction and/or increasing the share of low-carbon electricity, with specific requirements for electricity procurement.
- Scope 3: Absolute reduction, supplier or customer alignment targets, or category- and activity-specific targets.
3. Governance, transition plan and inventory assurance
V2.0 anchors target setting more firmly within the company:
- Approval of targets by the highest decision-making body (board or management)
- Mandatory preparation of a transition plan that sets out how the targets will be achieved. Category A companies must publish this plan.
- Limited assurance, meaning a limited third-party review of the GHG inventory, becomes mandatory for Category A companies.
4. Target base year based on current data
The new standard drops the fixed historical base year. Instead, a target base year is set based on the most recent comprehensive data and updated in every target-setting cycle. As a result, different base years for Scope 1, 2 and 3 are no longer provided for.
In addition, Category A companies must identify and quantify emissions-intensive activities (EIAs) that account for ≥5% of Scope 3 emissions. This change moves the base year inventory to the activity level.
Companies may also communicate a fixed reference year in parallel. Recalculation rules continue to apply, for example when emissions change by more than 5% due to a change in organizational boundaries.
5. New implementation hierarchy and market instruments
Direct emission reductions remain the top priority. Where direct action is not possible, for example because there is no direct contact with suppliers, V2.0 allows action within shared systems (“activity pools” such as power and gas grids, supply sheds and logistics networks). Only where this is also structurally impossible can action be taken at the sector level. In addition, projects and market instruments, for example for electricity, are recognized as long as they meet clear integrity criteria and are reported transparently.
6. Ongoing Emissions Responsibility (OER)
With Ongoing Emissions Responsibility (OER), V2.0 introduces a voluntary recognition program. It addresses the emissions a company continues to cause on its way to net zero and complements the company's own decarbonization without replacing it. It takes the place of what V1 covered as “Beyond Value Chain Mitigation” (BVCM).
Companies can be recognized at three levels (Engaged, Advanced, Leadership), graded by the share of emissions covered. From 2035, the program will become partly mandatory for Category A companies.
Timeline and next steps
- February 1, 2027: V2.0 takes effect.
- February 1, 2027 to January 31, 2028: V1.3.1 can still be used for target setting. Companies can set or renew targets under V1.3.1 or V2.0.
- From January 31, 2028: V2.0 is mandatory for all new targets and target renewals.
Companies with existing targets do not need to act immediately. However, the SBTi recommends becoming familiar with the new framework early. Companies that still want to set, update or renew targets based on V1.3.1 should do so as soon as possible.
How Tanso supports you
Many requirements of V2.0 of the Corporate Net-Zero Standard depend on the quality of the underlying emissions data. Tanso supports industrial manufacturers with an audit-ready, AI-supported platform for the corporate carbon footprint (CCF), Scope 3 data management and decarbonization.
Specifically, Tanso helps you
- build a robust, audit-ready GHG inventory as the basis for target setting and future limited assurance,
- capture Scope 3 categories and emissions-intensive activities at the activity level and assess them against the 5% threshold,
- plan and prioritize reduction measures in the Tanso reduction module and track their progress over the target cycle.
Once SBTi validation against V2.0 starts in early 2027, companies with a solid data foundation will be best positioned to move from targets to implementation quickly and credibly.
.avif)
