The Science Based Targets initiative (SBTi) Corporate Net Zero Standard is the world’s only framework that enables companies to set net zero targets consistent with limiting global temperature rise to 1.5°C. It provides clear guidance on near-term and long-term decarbonization, ensuring companies develop credible net zero plans.
To maintain alignment with the latest climate science, the SBTi is currently revising the Corporate Net Zero Standard. This update follows a structured review process and an extensive consultation phase, aiming to refine key elements and enhance corporate accountability.
What is the existing SBTi Net Zero Standard?
The SBTi’s Corporate Net Zero Standard provides science-based criteria for companies to achieve net zero. It requires businesses to set clear near term targets :
- Set near-term targets to reduce emissions rapidly—typically by half—before 2030.
- Set science-based net zero targets for long-term reductions of at least 90% of emissions before 2050.
- Neutralize residual emissions through permanent carbon removal, ensuring any remaining emissions are balanced.
- Engage in Beyond Value Chain Mitigation (BVCM) to accelerate climate action beyond direct operations and supply chains.
This framework ensures that corporate net zero strategies are credible and in line with climate science, limiting global temperature rise to 1.5°C.
Why was the Net Zero standard created?
The SBTi developed the Net Zero Standard to establish a common definition of net zero emissions and prevent inconsistencies in corporate climate commitments. Previously, net zero pledges varied widely in scope, ambition, and methodology, leading to concerns about greenwashing.
By aligning targets with the latest climate science, the Standard helps businesses set science-based net zero targets focused on emissions reduction , providing companies a clear blueprint for climate leadership. This is crucial, as net zero commitments now cover 92% of global GDP and 88% of global emissions.
Key elements of the Net Zero Standard
The SBTi’s corporate Net Zero Standard, as defined by the science based targets initiative, is built around four core components:
1. Corporate near term criteria
Companies must set a net zero near-term net-zero plans in line with science, to cut emissions by approximately 50% before 2030. These targets focus on deep decarbonization across direct operations and value chains.
2. Long-term targets
By 2050, companies must reduce at least 90% of emissions, making significant strides towards reaching net zero emissions through deep value-chain decarbonization.
3. Neutralizing residual emissions
After achieving long-term emissions reduction targets, businesses must counterbalance any remaining emissions with high-quality carbon removals. A company is only considered net zero when it has met its long-term target and neutralized residual emissions.
4. Beyond value Chain Mitigation (BVCM)
While direct emissions cuts remain the priority, the net zero standard gives companies guidance to support mitigation efforts outside their value chains and to align your company’s climate strategy with these efforts.
Proposed amendments to the Net Zero Standard
As part of its regular review cycle, the SBTi is updating the Net Zero Standard to address emerging challenges and opportunities:
1. Strengthen Scope 3 emissions reporting
Scope 3 emissions—those from a company’s value chain—often represent the majority of total emissions but remain challenging to track. The revised Standard proposes greater flexibility in reporting by allowing businesses to align with science based targets :
- Set targets for sustainable procurement and revenue-linked emissions reductions.
- Focus on key emissions-intensive activities where they have the most influence.
- Adopt a phased approach to improve data accuracy over time.
2. Recognize climate finance and carbon removals
The update introduces new guidelines for companies to receive recognition for:
- Investing in Beyond Value Chain Mitigation (BVCM), such as nature-based solutions and carbon removal projects.
- Setting interim carbon removal targets to help bridge the gap to full decarbonization.
3. Increase corporate accountability
To improve transparency, businesses will be required to:
- Report progress against their net zero targets consistently.
- Align disclosures with global climate reporting frameworks.
- Enhance public accountability by providing clear evidence of progress.
4. Simplify participation for developing economies
Recognizing the challenges faced by businesses in emerging markets, the revised Standard proposes a bold but credible net framework to support their efforts.
- Tailored requirements for small and medium-sized enterprises (SMEs).
- Adjusted expectations based on regional economic contexts.
- Greater flexibility in early-stage target-setting to encourage broader participation.
Next steps
The draft revision, including a minor resource update march, is currently open for public consultation until June 2025. Businesses, policymakers, and other stakeholders are encouraged to provide feedback to ensure the updated Standard remains both rigorous and practical.
By refining the Net Zero Standard, the SBTi aims to help more companies set net zero targets that are credible, actionable, and consistent with limiting global temperature rise to 1.5°C during this decisive decade for climate .
These changes will play a critical role in accelerating corporate climate action and ensuring long-term sustainability for businesses, particularly through enhancing climate resilience.
For organizations engaging in net zero target setting, now is the time to review existing targets and prepare for upcoming changes. Setting science-based net zero targets today is the best way to demonstrate climate leadership and future-proof business strategies against the risks of global warming.
