Version 2.0 of the SBTi Corporate Net-Zero Standard asks a simple but consequential question differently. It no longer asks primarily whether a company sets ambitious targets, but whether it implements and evidences them credibly.

This brings together what many organisations still run separately: the climate target, the transition plan and investment planning. Setting a target today also means deciding on investments, on how to handle residual emissions, and on early access to removals. This article reads the standard from exactly that angle.

The real shift: evidence over announcement

The framework has proven itself since 2021, with over 11,000 companies working to science-based targets. Version 2.0 draws a conclusion: a target alone creates no impact. A continuous steering process replaces one-off validation, with annual progress reviews, disclosed assumptions and a link to economic incentives. For corporate steering, this is the real change.

Who sets which targets

Instead of one size fits all, the standard differentiates by context. Category A covers large companies from all countries and mid-size companies in high-income regions; Category B covers small companies and mid-size companies in lower-income regions. Scope 1 and Scope 2 are kept separate, each with its own five-year targets. For Scope 3, a five-percent significance test decides what is in scope, and a near-term Scope 3 target is mandatory only for Category A, which also faces limited assurance of its data.

Reduce first, the market only as a complement

The standard sets a clear order: direct reductions in your own operations first, then along the value chain, then systemic levers. Market instruments such as energy attribute certificates remain possible, but only as a complement and only where quality requirements are met. A best-efforts principle keeps companies within the framework if they disclose barriers and use all levers. In practice: the reduction pathway must stand before credits are discussed.

Ongoing emissions: OER and the price of residuals

New is a voluntary model for taking responsibility for ongoing emissions, Ongoing Emissions Responsibility (OER). It starts in 2027, complements decarbonisation rather than replacing it, and the contributions used for it stay separate from target progress. Companies choose their level across three tiers.

Eligible contributions include emission reductions, CO₂ removals, low-carbon research, adaptation and resilience funding, and support for loss and damage. The economic core: from 2035, large and medium-sized companies in high-income countries must cover a growing share of their ongoing emissions with removals, and neutralisation follows durability. Because durable removals are scarce and rising in price, the timing of procurement shapes the cost.

The roadmap

Existing validated targets remain valid throughout their cycle. For new targets: Version 1.3.1 is usable until 31 January 2028, validation against Version 2.0 opens in early 2027, and from 1 February 2028 it is mandatory. From 2035 the removal component applies to Category A and grows to the net-zero year. The transition looks long, but the cost-relevant decisions fall much earlier.

Sources: SBTi Corporate Net-Zero Standard V2.0, Executive Summary and supporting materials (June 2026); ESG Today.