The Science Based Targets initiative (SBTi) published its Corporate Net-Zero Standard Version 2.0 in June 2026. Validation under Version 2.0 opens on 1 February 2027. The revised Standard broadens the framework from target setting towards implementation, governance, transparent reporting and continuous improvement.
Key changes include differentiated requirements based on company size and market context; context-specific target setting; stronger links between targets and transition plans; a best-efforts approach to implementation; annual reporting and periodic progress assessment; and an implementation hierarchy that prioritises direct reductions in company operations and value chains.
What has changed
Version 2.0 introduces a more tailored model. Category A generally covers larger companies, while Category B includes SMEs and qualifying companies in lower-income countries. Some requirements that apply to Category A are optional for Category B.
Companies set two or more near-term targets and may choose to set an overarching net-zero target.
The principal operational changes are:
- Governance and transition planning: Targets must be approved at the highest level and supported by a maintained transition plan.
- Implementation: Companies are expected to use available levers, state assumptions and dependencies, and address barriers.
- Progress management: Annual reporting is complemented by periodic assessment of progress, barriers and corrective action.
- Implementation hierarchy: Direct reductions are prioritised, with broader activity-pool, sector-level and eligible market-based actions recognised where appropriate and subject to safeguards.
- Ongoing emissions responsibility: Version 2.0 introduces a framework for companies to take responsibility for emissions released while they transition, with supporting arrangements being introduced separately.
Who is affected and when
Companies can book validation under Version 2.0 from 1 February 2027. Between 1 February 2027 and 31 January 2028, they can choose Version 2.0 or continue using Version 1.3. Existing validated targets remain valid throughout their target cycle, subject to the SBTi’s five-year review provisions.
Organisations should therefore avoid treating 2027 as a single mandatory switchover date. The appropriate route will depend on whether they are setting targets for the first time, renewing them or operating within an existing target cycle, as well as on the SBTi transition and renewal arrangements that apply.
The practical implication is that companies considering a submission in 2027 should compare both versions early, assess the data and governance requirements, and confirm the route that best fits their target cycle and readiness.
Operational implications
Version 2.0 makes target delivery a cross-functional management issue. Finance may need to reflect transition priorities in investment appraisals; procurement may need emissions criteria and supplier-engagement plans; estates and operations may need named retrofit, energy and fleet programmes; and leadership teams will need clear ownership of progress and corrective action.
Scope 3 will be a particular challenge where emissions are significant. Emissions data may sit across multiple systems and suppliers, calculation methods may vary, and an organisation’s influence may be limited. Effective management will require clearer data ownership, category-level priorities, supplier engagement and transparent treatment of dependencies.
Transition plans will also have greater practical importance. SBTi validation can assess whether specified plan elements and related requirements are present; it does not amount to an endorsement of the plan’s overall quality, feasibility or legal compliance. Companies remain responsible for ensuring that plans are credible, adequately resourced and aligned with applicable regulation.
What organisations should do now
Organisations do not need to wait for their next submission to prepare. Priority actions are to:
- Map current targets, validation dates and review points against the Version 2.0 transition timetable.
- Confirm whether the organisation falls within Category A or Category B and identify the applicable requirements.
- Compare the existing transition plan with Version 2.0 expectations for actions, responsibilities, assumptions, dependencies and governance.
- Assign ownership for Scope 1, 2 and material Scope 3 data, including data quality and assurance processes.
- Translate targets into funded operational initiatives, such as building retrofits, energy procurement, fleet replacement and supplier programmes.
- Define progress indicators, reporting responsibilities and triggers for corrective action when delivery falls behind plan.
Looking ahead
Version 2.0 does not make validation less important; it makes the work around validation more explicit. Companies will need reliable data, accountable governance and a transition plan that connects targets to real decisions and measurable interventions.
For organisations preparing to submit or renew targets, the immediate task is to understand which version and category apply, then close any gaps in data, governance and implementation capability before entering validation.
Written By: Tim Holman – Head of Consultancy, MSc, MEng, CEng, MEI
Tim leads TEAM Energy’s consultancy practice and has extensive experience supporting organisations through ESOS compliance, audits and regulatory review.