SBTi unveils Net-Zero Standard 2.0: Three key changes companies should know

SBTi has released Version 2.0 of its Corporate Net-Zero Standard, the first major update since the framework was launched in 2021. (Photo: iStock)

The Science Based Targets initiative (SBTi) released Version 2.0 of its Corporate Net-Zero Standard on Thursday, marking the first major revision since the framework launched in 2021.

For the more than 11,000 companies that already hold SBTi-validated targets, the new standard changes how near-term and long-term climate commitments will be structured. SBTi board chair Francesco Starace said the update reflects a decade of experience showing that “ambition alone is not enough” for companies pursuing net-zero goals.

Several of the new flexibilities, including revised Scope 3 options and the “best efforts” approach to target-setting, are available immediately to companies with existing targets or those renewing under the current Version 1.3.1, ahead of full Version 2.0 validation opening in the first quarter of 2027.

For companies across Asia’s manufacturing and energy supply chains that sell into corporate decarbonization commitments, three changes stand out: how supply chain emissions are counted, how long-term targets are structured, and how carbon credits factor into ongoing climate commitments.

Unlock the full article to explore three key takeaways:

1. SBTi Net-Zero Standard 2.0 now lets companies count low-carbon product purchases—green steel, green cement, EVs—toward Scope 3 targets.
2. Fixed 2050 net-zero commitments are replaced by continuous five-year target cycles with annual progress reporting and end-of-cycle assurance.
3. A new voluntary three-tier carbon credit program runs from "Engaged" to "Leadership".