The Science Based Targets initiative (SBTi) has released Net Zero Standard 2.0, introducing the most substantial update to its corporate Net Zero framework since the standard was first published. For businesses committed to credible climate action, this update raises expectations around ambition, accountability and transparency, while reinforcing the need for immediate and measurable emissions reductions.
What is the SBTi Net Zero Standard?
The SBTi Net Zero Standard provides a globally recognised framework for companies to set emissions reduction targets aligned with limiting global warming to 1.5°C. It defines how much and how quickly emissions must be reduced, how Net Zero is achieved, and the role of neutralisation at the end of the pathway.
Since its introduction, the standard has become the benchmark for credible corporate Net Zero commitments, with thousands of organisations using it to guide climate strategy and communicate ambition to investors, customers and regulators.
Why has the Net Zero Standard been updated?
The update reflects changes in climate science, policy expectations and corporate practice. As Net Zero commitments have proliferated, concerns have grown around inconsistent target quality, over-reliance on offsets and a lack of near-term action.
Net Zero Standard 2.0 responds to these challenges by tightening definitions, closing loopholes and placing greater emphasis on real-world emissions reductions rather than long-term promises.
What has changed in Net Zero Standard 2.0?
A stronger focus on near-term action.
One of the most important shifts in the updated standard is the emphasis on action in the near term. Net Zero is no longer framed primarily as a long-term destination. Instead, credibility is determined by the speed and scale of emissions reductions delivered in the coming decade.
Businesses are expected to demonstrate rapid progress during the 2020s and early 2030s, supported by clear implementation plans. Delaying action while relying on future technologies or offsets is explicitly discouraged.
For organisations, this means Net Zero strategies must be embedded into operational and investment decisions today, not deferred to later stages.
Clearer limits on offsets and neutralisation
Net Zero Standard 2.0 reinforces a clear principle. Emissions reductions come first. Offsets cannot be used to meet near-term or long-term science-based targets, and neutralisation is only permitted for residual emissions at the point of Net Zero.
The updated guidance also places greater scrutiny on the quality, durability and permanence of removals used for neutralisation. This reflects growing concern about the credibility of many offset-based claims.
Businesses that have relied heavily on offsets will need to refocus efforts on reducing emissions across operations and value chains.
More robust Scope 3 expectations
Scope 3 emissions often represent the largest share of a company’s footprint, yet they have historically been the weakest area of target-setting and delivery. The updated standard introduces clearer expectations around Scope 3 coverage and alignment with Net Zero pathways.
Companies are expected to address material Scope 3 categories more comprehensively and demonstrate meaningful engagement with suppliers and customers. Value chain transformation is no longer optional. It is central to meeting the standard.
This has significant implications for procurement, product design and supplier relationships.
Greater transparency and accountability
Net Zero Standard 2.0 strengthens expectations around disclosure and communication. Companies must ensure that public claims about Net Zero accurately reflect their targets, progress and use of neutralisation.
The update aims to reduce the risk of misleading or ambiguous Net Zero statements and align corporate communications more closely with climate science.
As scrutiny from regulators, investors and civil society increases, consistency between strategy, action and reporting becomes critical.
Clearer definitions of Net Zero
The revised standard sharpens the definition of what Net Zero means in practice. It draws a clearer distinction between emissions reductions and neutralisation, clarifies what qualifies as residual emissions, and aligns terminology more closely with scientific pathways.
As a result, there is less room for interpretation. The threshold for compliance and credibility is higher than before.
Who does Net Zero Standard 2.0 apply to?
The updated standard applies to organisations setting new SBTi Net Zero targets, as well as companies with existing commitments that will need to transition to the revised framework over time.
Any business facing regulatory pressure, investor scrutiny or customer expectations around credible climate action should assess how the changes affect its current strategy.
Latest update on implementation timelines
The SBTi has also shared important guidance on the rollout of Net Zero Standard 2.0. Version 2.0 of the Corporate Net Zero Standard has now been published, with target submission opening in February 2027.
Until submissions open, organisations are encouraged to continue using the current versions of the Corporate Net Zero Standard, the Near-Term Criteria and any relevant sector-specific guidance when developing and submitting targets.
The update also introduces a new company categorisation system as part of the validation process. Businesses that have not yet been assigned a category are advised to update their company profile with the required information, enabling SBTi Services to determine the appropriate classification.
To support a smooth transition, companies can register their interest in Version 2.0 to receive updates on timelines and next steps.
What should businesses do next?
Businesses should start by reviewing existing targets against the updated requirements and identifying gaps, particularly around near-term ambition and Scope 3 coverage. Emissions reduction pathways may need to be strengthened, with a renewed focus on operational change rather than offsetting.
Improving data quality, deepening supplier engagement and aligning internal teams across sustainability, finance and procurement will be essential. Acting early will reduce compliance risk and help businesses maintain credibility as expectations continue to rise.
How can Positive Planet support your Net Zero journey?
Positive Planet works with organisations to develop science-based, credible and practical Net Zero strategies aligned with the latest SBTi guidance. From emissions measurement and target setting to implementation and reporting, we help businesses turn ambition into action.
If you would like support aligning with SBTi’s Net Zero Standard 2.0, get in touch with Positive Planet to understand what the changes mean for your business.