An Ambitious Revision to Strengthen Corporate Climate Commitment
The Science Based Targets initiative (SBTi) has recently launched a public consultation on its Corporate Net-Zero Standard V2.0, which will become mandatory starting in 2027. This updated version of the corporate standard aims to reinforce methodological rigor and climate ambition, leveraging the latest scientific advancements.
We welcome the momentum created by this consultation, to which many stakeholders—including Carbometrix—have contributed. This revision offers an opportunity to broaden adoption of the standard while ensuring the credibility and comparability of climate commitments.
Same Philosophy, Stricter Framework
The new standard maintains the core goal of aligning decarbonization targets with science but introduces stricter requirements to ensure the integrity of climate trajectories.
Key Structural Advances:
Companies are now categorized into two groups:
Group A: Large companies in high-income countries.
Group B: Medium-sized enterprises in developing countries and SMEs.
Targets become cyclical every 5 years, enhancing accountability and monitoring, compared to the previous 10-year targets.
In the case of missed targets, a pedagogical approach is proposed for Scope 1: the SBTi suggests calculating the performance gap and requiring it to be addressed in the next cycle.
Publishing a transition plan becomes mandatory for large companies, along with an external audit of the GHG inventory used as a baseline for SBTi targets—strengthening the credibility and transparency of corporate targets.
Focus on Scope-Specific Evolutions
Scope 1: Improved Prioritization
Scope 1 targets must now be set separately (not bundled with Scope 2), allowing companies to focus more precisely on direct emissions—those they have the most control over. The SBTi proposes a new methodology that incorporates a corporate “carbon budget” approach for setting decarbonization targets in this scope.
Scope 2: Ambition in Need of Clarification
Companies must set:
One location-based target, and
Either a market-based target or a target for the share of purchased renewable energy.
However, our climate consultants raise concerns:
Companies have limited control over the carbon intensity of the national electricity grid.
The energy transition encourages electrification across sectors, which mechanically increases electricity consumption.
There's a greenwashing risk if green electricity contracts are purchased in different geographies without actual local decarbonization impact. Safeguards are necessary.
Scope 3: Broader Coverage and Enhanced Monitoring
The new framework replaces the 67% coverage rule for Scope 3 with a dual approach:
Cover all categories accounting for ≥5% of Scope 3 emissions.
Specifically target high-emission activities as defined by the SBTi classification if they represent ≥1% of Scope 3 or >10 ktCO₂e.
This requirement adds rigor and ambition to Scope 3, but the high uncertainty margins in emissions inventories make this level of granularity hard to track over time. We’ve suggested more pragmatic alternatives to keep the main goal in sight: enabling as many companies as possible to set rigorous and achievable commitments. For example:
Increasing Scope 3 coverage to 80% instead of the current 67%.
Lowering the high-emission activity threshold to 3%.
Other key proposals by the SBTi:
Mandatory supplier engagement, especially for those involved in high-emission activities.
Possible integration of indirect mitigation measures if direct reductions are temporarily unfeasible (see next section for our views).
New Options Introduced by the SBTi
Indirect Mitigation: A Tool to Use with Caution
The standard introduces indirect mitigation mechanisms where direct reduction is not feasible (e.g., “book and claim” for sustainable aviation fuels). We remain highly cautious with these mechanisms: they should never replace direct action and energy efficiency efforts, which are crucial to achieving Net Zero.
Compensation and Residual Emissions
The SBTi also proposes optional targets for residual emissions or efforts Beyond Value Chain Mitigation (BVCM). While we are not specialists in these mechanisms, we believe they can be useful as long as they complement a clear decarbonization goal and the selected projects are rigorously vetted.
Balancing Ambition, Clarity, and Adoption
The SBTi’s initiative deserves praise for its ambition level and reinforced methodological rigor. However, the standard is becoming increasingly complex. If not well supported, this technicality may hinder adoption—much like the mixed reactions seen with the CSRD rollout. It is therefore essential that the final documentation remains clear, readable, and accessible, especially for mid-sized companies.
What’s Next?
At this stage, the new standard is still in the consultation phase and subject to change. It is expected to be published in 2026, with mandatory adoption starting in 2027. Targets validated under the current methodology will remain valid until 2030, with support provided to update them.
Carbometrix is ready to support companies in understanding and embracing this new framework, turning climate commitments into concrete, measurable action.