On June 11, 2026, the Science Based Targets initiative (SBTi) published the final Corporate Net-Zero Standard V2.0. The new version does more than revise individual requirements for climate targets. It marks a clear shift in focus: from setting science-based targets to implementing, managing, and regularly reviewing them. More than 11,000 companies have now set science-based targets.
For companies, the key question is therefore: What exactly is changing, and what should they already be doing now?
What is the SBTi?
The Science Based Targets initiative (SBTi) develops standards, methods, and guidance that enable companies to set science-based climate targets. Its aim is to align corporate emissions reductions with a global net-zero pathway by 2050 at the latest and with the goal of limiting global warming to 1.5°C.
The Corporate Net-Zero Standard sets out requirements for Scope 1, Scope 2, and Scope 3 emissions as well as for long-term decarbonization.
When does the SBTi Corporate Net-Zero Standard V2.0 apply?
Companies do not need to transition to V2.0 immediately.
- In 2026, V1.3.1 remains the applicable standard for the validation of new targets.
- From Q1 2027, companies can choose between V1.3.1 and V2.0.
- From February 1, 2028, new target submissions must comply with the Corporate Net-Zero Standard V2.0.
Previously validated near-term targets generally remain valid until the end of their target timeframe.
Companies that already have targets through 2030, for example, should nevertheless start taking V2.0 into account early. The SBTi recommends that companies with 2030 targets begin preparing for their next 2030–2035 target cycle, using V2.0 from 2028 onward.
The most important changes under SBTi V2.0
New company categories
V2.0 replaces the previous separate SME approach with Categories A and B. Going forward, the applicable requirements will depend more heavily on company size and location.
Category A generally includes large companies worldwide as well as medium-sized companies in high-income countries. This includes, for example, companies with at least €450 million in net turnover or 1,000 full-time equivalents. In high-income countries, Category A also applies to companies with at least 10,000 tCO₂e in Scope 1 and Scope 2 emissions or to companies that meet at least two of the following thresholds: €25 million in total assets, €50 million in net turnover, and 250 full-time equivalents. All other companies fall into Category B.
The distinction matters because additional requirements apply to Category A. These include mandatory Scope 3 targets, disclosure of the transition plan, and limited assurance over target base-year emissions data.
Climate targets move to five-year timeframes
Under V2.0, near-term targets are set with five-year target timeframes. Rather than carrying forward a historical base year over the long term, each new target cycle is based on current emissions data. This means companies regularly reassess their position and determine the reduction pathway required for the next timeframe.
Scopes 1, 2, and 3 are also treated more distinctly. Separate near-term targets are required for Scope 1 and Scope 2, each covering 100% of the respective emissions. For Scope 3, companies can focus more closely on the material sources of emissions across their value chain. Category A companies may, among other things, exclude individual Scope 3 categories if each accounts for less than 5% of total Scope 3 emissions and the requirements of the standard are met.
At the same time, a wider range of target-setting methods is available. In addition to absolute emissions reductions, V2.0 includes, for example, sector-specific intensity targets, asset transition targets, low-carbon electricity targets, and supplier and/or customer alignment targets for Scope 3. This is intended to align reduction pathways more closely with a company’s actual decarbonization levers.
From climate targets to a transition plan
One of the most significant changes concerns implementation. Companies must develop a transition plan that describes key measures, dependencies, and the pathway to achieving their targets. Climate targets must also be approved at the highest level of governance and embedded within the organization. Category A companies must publish their transition plan.
Regular progress assessments are another key element. Companies report annually and are assessed on their progress at the end of each target cycle.
Under V2.0, targets are pursued on a best-efforts basis: missing a target does not automatically result in exclusion from the SBTi system. Companies must, however, demonstrate which levers they have used, what barriers they encountered, and how those barriers were addressed. Higher residual emissions also result in correspondingly more ambitious requirements in the next target cycle.
This makes the quality of the underlying emissions data even more important.
Manage emissions data and SBTi targets centrally
Envoria’s Emissions Management solution combines carbon accounting, reduction planning, and progress tracking. Companies can capture Scope 1, Scope 2, and Scope 3 emissions, define SBTi-based reduction pathways, and track their development across multiple reporting years. The solution presented in the webinar covers the process from emissions calculation and reduction pathways through to carbon compensation.
New focus: Ongoing Emissions Responsibility and carbon removals
Of particular relevance is the new approach to emissions that continue to occur during the transition. With Ongoing Emissions Responsibility (OER), the SBTi introduces a dedicated framework for climate contributions outside the achievement of the company’s targets.
The distinction is important: these contributions do not replace emissions reductions within Scopes 1–3. They are accounted for separately and complement a company’s own decarbonization pathway. Participation in the OER Recognition Program is voluntary until 2035. Companies can achieve the Engaged, Advanced, or Leadership recognition levels.
From 2035 onward, responsibility for ongoing emissions is intended to become gradually mandatory for Category A companies. Under the V2.0 criterion published today, the required support for eligible carbon removals starts at 1% of ongoing Scope 1, Scope 2, and Scope 3 emissions in 2035 and increases linearly to 100% in the net-zero year, no later than 2050. At the same time, the share of long-lived removals is expected to increase.
There is, however, an important qualification: the SBTi explicitly describes these post-2035 requirements as forward-looking or illustrative requirements. They are intended to be reviewed again as part of a future Version 3 based on the scientific evidence available at that time.
The fundamental rule remains clear once net zero is reached: any remaining residual emissions must be fully neutralized through eligible carbon removals.
Manage carbon credits centrally
With Envoria’s carbon credit management functionality, companies can manage their calculated emissions and carbon credits in a single platform. Verified carbon credits can be purchased through partner Senken, with project and certificate data subsequently transferred back into Envoria. Credits purchased externally can also be documented, including project details and certificates.
This makes it possible to track emissions, progress in reductions, and additional climate contributions together across multiple years. Whether a specific carbon credit is eligible for a particular SBTi requirement or OER recognition continues to depend on the applicable SBTi integrity criteria.
What companies should prepare now
In 2026, there is no need for companies to revise their existing SBTi targets prematurely. However, it makes sense to start laying the foundations for V2.0 now: a robust foundation for Scope 1–3 emissions data, a clear classification as Category A or B, clearly defined responsibilities, and a transition plan that links targets to concrete measures.
The five-year target timeframes, stronger focus on Scope 3 management, and the future role of carbon removals, in particular, make SBTi more than a one-time target-validation exercise. Going forward, companies will need to plan, measure, and adjust their decarbonization efforts on a more continuous basis. This is the central shift introduced by the Corporate Net-Zero Standard V2.0.