The Science Based Targets initiative (SBTi) has released a new draft of its Corporate Net-Zero Standard (Version 2), introducing more flexible and scope-specific approaches to help companies set and achieve science-based decarbonization goals while maintaining alignment with the Paris Agreement [1][2].

The updated draft, published on 6 November 2025, reflects extensive stakeholder feedback from the first consultation held earlier this year. According to SBTi CEO David Kennedy, the new standard provides “a menu of options for companies to drive down their carbon footprint,” allowing more tailored pathways to reach net zero without diluting scientific rigor.

More Flexibility Across Scopes

For Scope 1 emissions, companies can now choose among three reduction pathways:

1. A linear decarbonization path toward net zero,
2. A low-carbon activity share increase, or
3. An Asset Decarbonization Plan, aligning asset upgrades with technological readiness.

In Scope 2, the draft clarifies requirements for purchased energy, maintaining mandatory near-term reduction targets but making long-term targets optional for smaller firms. It also refines rules for low-carbon electricity procurement, ensuring Energy Attribute Certificates (EACs) are regionally relevant.

The Scope 3 framework, often the most complex, now focuses on priority emissions sources where companies can exert the most influence. It introduces three target-setting options, emissions intensity, activity alignment, and counterparty alignment, to better reflect supply-chain diversity.

Broader Recognition and New Obligations

The revised draft also introduces a “leadership” recognition category for companies taking early action on residual emissions and a requirement for credible transition plans within 12 months of target validation for large firms (Category A). From 2035 onward, these companies must address residual emissions using carbon removals.

SBTi Chief Technical Officer Alberto Carrillo Pineda said the framework aims to make climate action “more inclusive, actionable, and adaptable for businesses everywhere.” The public consultation on the draft remains open until 8 December 2025, with the final standard due in 2026 and implementation beginning in 2028.

As of mid-2025, more than 11,000 companies worldwide, representing 40% of global market capitalization, have committed to SBTi-validated targets, underscoring the growing corporate shift toward measurable, science-based climate leadership [1][2].

References
[1] ESG Today. SBTi Increases Climate Target Flexibility in New Proposed Corporate Net Zero Standard. Retrieved from https://www.esgtoday.com/sbti-increases-climate-target-flexibility-in-new-proposed-corporate-net-zero-standard/
[2] ESG Dive. SBTi’s Latest Draft Standard Proposes Flexible, Scope-Specific Target Setting. Retrieved from https://www.esgdive.com/news/sbtis-latest-draft-standard-proposes-flexible-scope-specific-target-setti/805160/