On 6 November 2025, the Science Based Targets Initiative (SBTi) published a second draft of the Corporate Net-Zero Standard (the Standard) Version 2.0 for public consultation, which marks the next step in the revision process of SBTi’s key voluntary, science-based net zero target-setting standard. The second draft draws on feedback from the first public consultation, alongside input from expert working groups.
The SBTi is an organisation that develops standards and guidance, intending to assist companies to set greenhouse gas (GHG) emission reduction targets in line with reaching net zero by 2050.
The Standard, released on 28 October 2021, was the first global framework for setting corporate net zero targets. Since then, it has been revised several times (the current version being Version 1.3), aiming to incorporate “the latest developments in science”.
On 18 March 2025, the SBTi published the first consultation draft on Version 2.0 of the Standard. This version proposed significant, substantive updates to Version 1.3 and, according to the SBTi, aimed “to continue to enable companies to set and deliver ambitious, science-based targets consistent with achieving net-zero emissions at the global level by 2050”.
The first consultation draft proposed the addition of several potential pathways for reaching GHG emission reduction targets, required explicit Scope 2 emissions targets, and mandated large companies to set Scope 3 value chain emissions goals and consider options to address residual emissions (including the introduction of interim carbon removals targets).
The second consultation draft of Version 2.0 was released on 6 November 2025, with the consultation running to 8 December 2025. This consultation draft advances and refines the proposals from the earlier consultation.
Version 2.0 (as proposed in both consultations) looks to introduce two categories of companies based on company size and geography.
Category A includes: (i) large companies (net worldwide turnover above €450 million and/or more than 1,000 employees); and (ii) medium companies in high‑income countries, meeting two of the following three thresholds: balance sheet total ≥ €25 million; net worldwide turnover €50–€450 million; and 250–1,000 employees.
Category B includes medium companies in below-high-income countries, and small and micro companies (i.e., those that did not meet the above thresholds).
The below table compares the current Version 1.3 with the two Version 2.0 consultation drafts.
|
|
Version 1.3 |
Version 2.0 (first draft) |
Version 2.0 (second draft) |
|
Ambition: net zero emissions no later than 2050 |
Companies shall make a commitment through the SBTi |
Companies shall publicly commit to reaching net zero emissions |
Companies shall set an ambition to transition their operations and value chains to align with the goal |
|
Transition plans requirements |
Not required |
Introduced the question on requiring transition plans |
Category A companies required to disclose within 12 months of target validation |
|
Assurance requirement |
Not required |
Requirement for Category A companies to obtain limited assurance on base-year GHG emissions inventory |
Requirement for Category A companies to obtain limited assurance on the values for metrics used in target-setting |
|
Scope 2 targets |
Near- and long-term targets required across all scopes
|
Required near- and long-term targets for all companies, covering 100% of emissions |
Near-term target required for all, long-term target required for Category A Option to exclude limited emissions from the near-term boundary |
|
Scope 3 targets |
Near- and long-term targets required across all scopes (small and medium enterprises not required to set Scope 3 targets) |
Introduces new alignment options and includes both emissions reduction and mandatory supplier engagement targets |
Focus on alignment targets in the near-term, and absolute emissions in the long-term Refined target-setting approach to address “priority emissions” and includes three options for target-setting: emissions intensity, activity alignment, and counterparty alignment |
|
Responsibility for ongoing emissions |
Required emissions neutralisation at net zero, with more limited interim guidance |
Considers whether removal targets to proactively address residual emissions should be required or recognised |
Introduces two levels of recognition for ongoing emissions responsibility From 2035, Category A companies will be required to take responsibility for at least 1% of ongoing Scope 1-3 emissions through carbon removal activities |
Stakeholders can participate in the public consultation (until 12 December 2025) by using this link. The stated goal of the consultation is to ensure that the revised draft is clear, practical, and aligned with stakeholder needs.
Feedback will then be reviewed and used to inform the further development of Version 2.0 of the Standard. There is the potential for further public consultation before the Standard is submitted for review by the SBTi Technical Council, and finally adopted by the Board of Trustees. Following this, the SBTi intends to publish Version 2.0 in 2026.
Latham & Watkins will continue to monitor ESG developments globally.
This article was prepared with the assistance of Samantha Banfield at Latham & Watkins.