SBTi Corporate Net-Zero Standard 2.0: New Flexibility, New Obligations

Key Takeaways

What Happened: The Science Based Targets initiative (SBTi) released Version 2.0 of its Corporate Net-Zero Standard, a revised framework for setting, implementing, reporting, and assessing progress against corporate net-zero greenhouse gas (GHG) targets. The new standard takes a revised, more pragmatic approach, meeting the moment with updated rules on voluntary action and enabling more pathways to achieve deeper decarbonization. Version 2.0 expects companies to mobilize “all available levers” to reduce GHG emissions, including chain-of-custody and sectoral approaches to reduce supply chain emissions where appropriate. The new standard also recognizes that companies may face implementation barriers and enables companies to make progress toward their targets while addressing these barriers transparently over time. Importantly, SBTi acknowledges ongoing work by the Greenhouse Gas Protocol and the International Organization for Standardization (ISO)—each of which has