SBTi Net‑Zero Standard

The Corporate Net-Zero Standard of the Science Based Targets initiative (SBTi) is the leading global framework that defines how companies can set corporate net-zero targets aligned with limiting warming to 1.5 degrees C. It moves net zero from a vague pledge to a measurable, validated commitment built on deep emission cuts plus the permanent removal of any residual emissions.

At its core, the standard asks companies to decarbonise as far as possible, typically by around 90% across Scope 1, Scope 2 and Scope 3, and then to neutralise the small share of remaining emissions through permanent carbon removals rather than avoided-emission offsets.

Version 2.0: published June 2026

SBTi published the final Corporate Net-Zero Standard Version 2.0 on 11 June 2026. It becomes effective on 1 February 2027, with validation under the new rules beginning in 2027. Throughout 2026 the previous version (V1.3.1) remains the applicable framework for setting and validating targets, and there is a transition period before V2.0 becomes mandatory for all new submissions.

The main changes introduced by Version 2.0 include:

• Company categories: stricter requirements for larger, higher-impact companies (Category A) and more flexibility for smaller ones (Category B).
• A new approach to Scope 3: targets focus on the most significant categories rather than a single fixed percentage of total value-chain emissions, with a wider menu of methods including supplier engagement, intensity benchmarks and circularity measures.
• Ongoing emissions: a new framework asking companies to take responsibility for the emissions that persist while they work towards their targets, bringing removals, neutralisation and beyond value chain mitigation under one structure.
• Stronger emphasis on the quality and permanence of carbon removals used for neutralisation.

How science-based net-zero targets are structured

Under the SBTi approach, companies set two complementary types of target:

• Near-term targets: emission reductions over roughly 5 to 10 years, consistent with a 1.5 degrees C pathway.
• Long-term targets: reaching net zero, generally meaning a reduction of around 90% by no later than 2050, with residual emissions neutralised through removals.

This distinguishes a validated net-zero target from looser claims of carbon neutrality, which can rely heavily on offsetting without deep decarbonisation.

The validation process

1. The company commits to setting science-based targets.
2. It submits its targets to SBTi for assessment.
3. SBTi reviews the targets against its criteria.
4. Validated targets are approved and published.
5. The company reports progress and reviews its targets over time.

Why it matters

• It provides external, science-based credibility for corporate climate claims.
• It complements standards such as ISO 14068 on carbon neutrality and supports disclosure under the CSRD.
• Investors and lenders increasingly look for SBTi-validated targets when assessing transition plans.

At Manglai we help companies measure their carbon footprint and prepare credible, science-based climate targets and sustainability reporting. Discover how Manglai can help you.