THE NEW SBTI – 2.0 V2! WHAT HAS CHANGED? WHY DOES IT MATTER?

Why SBTi 2.0 Even Exists?

SBTi updated its entire framework because science is getting clearer: we need faster and deeper emission reductions to avoid severe climate impacts. Companies are central to this. SBTi says businesses have the power to shape markets, change supply chains, and drive systemic decarbonization — but the old framework didn’t push companies hard enough or regularly enough.

So, Version 2.0 is designed to be clearer, be stricter, keep companies on track, and make climate targets something you actually implement, not just declare.

A key part of this is the Corporate Transition Plan (CTP), which turns ambition into a credible, board-approved roadmap with actions, timelines, and financing— making climate strategy reliable for stakeholders and investors by linking ambition to financing and governance.

What Has Actually Changed?

Near-term targets must cover 5 years from submission (shorter allowed for reporting cycles). Companies are also likely to be required to set mid-term targets (10-year), which are currently under consultation.

Targets must be renewed every 5 years — no more “set once and forget”.
The new framework brings Entry Check, Initial Validation, Renewal Validation & spot checks.
Companies must publish a real transition plan within 12 months of validation.
Scope 2 must align with 100% low-carbon electricity by 2040.
Scope 3 gets stricter with mandatory targets for all categories ≥5% emissions.

From 2035, Category A companies must take responsibility for ongoing emissions under the Ongoing Emissions Responsibility (OER) framework. Companies must disclose whether they will take responsibility for at least 1% of ongoing emissions during each 5-year cycle (voluntary now, mandatory from 2035).

At the net-zero target year, companies must neutralize 100% of residual emissions using removals only. Avoidance credits no longer count. At least 41% of removals must be long-lived by 2050.

How SBTi 2.0 Treats Carbon Credits

SBTi V2 clarifies how carbon credits can be used:

Neutralization: At net-zero year, use removals only.
Ongoing Emission Responsibility (OER): From 2035, mandatory for Category A.
Voluntary contributions: Companies can purchase additional credits anytime.

What This Means for Businesses Realistically?

You need faster decarbonization with shorter cycles.
Better data + third-party assurance becomes mandatory.
Your supply chain strategy must mature — suppliers must decarbonize.
Transition plans must be board-approved & renewed every 5 years.
Budgeting for ongoing emissions responsibility becomes essential.

Your Transition Plan Is Now an Investment Plan

SBTi 2.0 turns the Corporate Transition Plan (CTP) into a financial roadmap. It must include actions, timelines, costings, governance, supplier engagement, and decarbonization financing. Boards must approve and review it every 5 years.

This matters because long-lived removals will become costly and scarce. Early adopters secure removal capacity and avoid future cost shocks.

What Companies Should Do Now

Here’s the practical checklist.

Prepare for the new 5-year target cycle: Align internal ESG strategy and capital planning with this shorter window.
Start building or updating your transition plan: You’ll need to publish it within 12 months of your targets being validated.
Improve data systems and supplier engagement: Stricter Scope 3 rules and mandatory assurance require better data access and quality.
Plan for ongoing emissions responsibility: Especially if you will be a Category A company the 2035 rule will become mandatory.
Prepare for the switch to SBTi 2.0 before 2028: If you plan to submit targets between now and 2027, decide whether to use V1.3 now or move early to V2.0.

Conclusion

SBTi 2.0 marks a shift toward faster action, stronger accountability, and clearer expectations for businesses. Climate commitments must now translate into real investments, transparent reporting, and continuous progress.

Official Source: https://sciencebasedtargets.org/consultations/cnzs-v2-second-consultation