The Science-Based Targets initiative (SBTi) has released a new draft update to its Corporate Net-Zero Standard. With the second public consultation now open, this update marks a significant shift from high-level ambition to practical implementation and a critical evolution for corporate sustainability. The updated SBTi corporate net-zero standard aims to make science-based action more flexible and accessible while maintaining alignment with the 1.5°C pathway. Following input from more than 1,000 stakeholders and several technical working groups, this revised draft provides more nuanced guidance on how companies can set, validate, and track decarbonisation targets across scopes.
From commitments to action
The original SBTi Corporate Net-Zero Standard, released in 2021, helped catalyse a wave of climate commitments across the private sector. Today, over 11,000 companies, representing 25 percent of global revenue and 40 percent of global market cap, have set or committed to science-based targets. However, implementation has proven challenging, particularly in complex value chains and emerging markets.
The new draft reflects this reality. It places a stronger emphasis on enabling practical, scalable action by introducing:
- A scope-specific target-setting approach, with tailored pathways for Scopes 1, 2, and 3.
- More flexibility for smaller companies and those in lower-income regions.
- Three clear options for setting Scope 1 targets, including asset-level decarbonisation plans.
- Improved criteria for Scope 2 electricity purchasing and clearer national alignment rules.
- A tiered approach to Scope 3 target-setting, focusing on priority emissions sources.
Additionally, the draft formalises the use of environmental attribute certificates (EACs), such as carbon credits, under strict conditions, and introduces a new “leadership” recognition category for companies taking early, voluntary action on residual emissions.
Accelerate credible net-zero progress - enrol now and turn commitments into value
A shift toward practicality and transparency
Beyond technical changes, the updated standard reflects a shift in tone. Companies are no longer required to make a public “commitment” to net zero by 2050, but must instead set an ambition to align operations and value chains with that goal. The new language reduces the risk of greenwashing while still aligning with global targets.
Importantly, the revised SBTi corporate net-zero standard includes clearer expectations for disclosure, transition plans, and ongoing progress tracking. This makes it easier for investors, regulators, and stakeholders to assess credibility. Companies in Category A (large firms or those in high-income countries) will be expected to publish credible transition plans within 12 months of target validation and begin addressing residual emissions through removals from 2035.
The current consultation will run until 8 December 2025, with final publication of the updated standard expected in Q2 2026. Companies will not be required to align with the new version until January 2028, giving time for transition and further refinement. Click here to view the full draft and consultation.
Conclusion
The revised SBTi corporate net-zero standard reflects a critical step forward in the evolution of corporate climate strategy, moving from commitments to credible, measurable action. With clearer expectations, greater flexibility, and stronger accountability mechanisms, it challenges businesses to align operations with science while supporting a more inclusive global transition.
For corporate leaders, this is a signal to embed net-zero planning deeper into core operations, and to build the skills needed to navigate complex emissions data, evolving frameworks, and stakeholder demands. Explore our online, accredited net zero course to equip your team with the practical tools, strategies, and insights required to lead this next phase of corporate climate action.
Marek Wystepek is the Enterprise Sales Executive at the Institute of Sustainability Studies, bringing a wealth of experience in strategic growth, commercial sales, and enterprise partnerships.
With a consultative sales approach and a deep understanding of diverse markets across Ireland and the UK, Marek is passionate about helping businesses advance their sustainability education. His entrepreneurial mindset and proven track record in driving business success make him a key asset to the team.
