SBTi Publishes Final Corporate Net-Zero Standard V2.0

The Science Based Targets initiative (SBTi) published the final Version 2.0 of its Corporate Net-Zero Standard on 11 June 2026. This is the most comprehensive framework for corporate climate action the SBTi has produced 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 more practical framework for target setting.

What's new in V2.0?

V1 was essentially 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 point.

V2.0, by contrast, is an implementation and continuous improvement framework. It segments companies (Category A and B), separates Scope 1 and Scope 2, replaces the rigid Scope 3 coverage with a significance 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.

The key changes for industrial companies at a glance

1. Company categorization (Category A vs. B)

In V2.0 of the standard, requirements are differentiated even more clearly by company size and geographic location, divided into Category A and Category B.

Category A covers companies in high-income countries whose Scope 1 and Scope 2 emissions are at least 10,000 tCO₂e, or that meet at least two of the following three criteria:

• Balance sheet total: ≥ EUR 25 million
• Net turnover: ≥ EUR 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 disclosure of the transition plan, 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 in the future be considered separately with 100% coverage each for both near-term and long-term targets.

For Scope 3, a new significance test applies to the coverage of near-term targets: all categories accounting for 5% or more of Scope 3 must be included. For Category A companies, Scope 3 target setting remains mandatory; for Category B companies it is optional.

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 assurance of the inventory

V2.0 anchors target setting more firmly within the company:

• Approval of targets by the highest decision-making body (board or executive management)
• Mandatory development of a transition plan setting out how the targets are to be achieved. Category A companies must publish this plan.
• Limited assurance, i.e. a limited third-party review of the GHG inventory, becomes mandatory for Category A companies.

4. Target base year on a current data basis

The fixed historical base year is removed in the new standard. Instead, a target base year is set on the basis of the most recent comprehensive data and updated in each target-setting cycle. As a result, there are no longer different base years for Scope 1, 2, and 3.

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 emissions reductions remain the top priority. Where direct measures are not possible, for example because there is no direct contact with the supplier, V2.0 permits measures within shared systems ("activity pools" such as electricity and gas grids, supply sheds, logistics networks). Only where this too is structurally impossible can action be taken at the sector level. In addition, projects and market instruments, e.g. for electricity, are recognized, provided they follow 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 the path to net-zero and complements, but does not replace, its own decarbonization. It takes the place of what V1 included as "Beyond Value Chain Mitigation" (BVCM).

Companies can be recognized across three levels (Engaged, Advanced, Leadership), graded by the share of emissions covered. From 2035, the program becomes 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 remains usable for target setting. Companies can set or renew targets under either V1.3.1 or V2.0.
• From January 31, 2028: V2.0 becomes mandatory for all new target setting and target renewals.

For companies with existing targets, no immediate action is required. However, the SBTi recommends familiarizing yourself with the new framework early on. Companies that still wish to set, update, or renew targets on the basis of V1.3.1 should do so as soon as possible.

How Tanso supports you

Many of the requirements of V2.0 of the Corporate Net-Zero Standard depend on the quality of the underlying emissions data. Tanso supports manufacturing companies with an audit-compliant, AI-powered platform for the corporate carbon footprint, Scope 3 data management, and decarbonization.

Specifically, Tanso helps to:

• build a robust, assurance-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 begins in early 2027, companies with a solid data basis will be best positioned to move quickly and credibly from targets to implementation.