Publication Date: July 2026
SBTiCorporate Net Zero Standard V2
From Ambition to Accountability: What Businesses need to know
The Science Based Targets initiative (SBTi) has released its revised Corporate Net Zero Standard Version 2.0, representing one of the most significant changes to corporate climate target setting since the original framework was introduced.
The revised standard, taking effect from February 2027, shifts the focus from setting long-term ambitions towards demonstrating measurable progress, transparent reporting and accountable delivery. Organisations will be expected to show not only where they intend to go, but how they plan to get there and what progress is being made along the journey.
Why Is SBTi Changing?
As climate reporting matures, stakeholders are demanding more than high-level commitments. Investors, customers, regulators and financial institutions increasingly want evidence that organisations are delivering meaningful emissions reductions.
The updated framework has been designed to:
- Improve the practicality of target implementation.
- Strengthen accountability and transparency.
- Encourage more effective action across supply chains.
- Improve reporting quality and data integrity.
- Align with emerging international climate reporting expectations.
- The overall direction of travel is clear: businesses will need stronger evidence, better data and more robust delivery plans behind their net zero commitments.
Greater Focus on Delivery and Demonstrated Progress
One of the most important changes is the move away from relying solely on long-term net zero commitments.
The revised framework places greater emphasis on:
- Actionable transition plans.
- Defined implementation programmes.
- Progress tracking.
- Demonstrable reductions within shorter planning cycles.
Organisations will increasingly be assessed on delivery rather than ambition alone.
What this means:
- More detailed decarbonisation roadmaps.
- Greater scrutiny of reduction activities.
- Increased board-level accountability.
- Stronger links between sustainability, procurement, operations and finance teams.
- Enhanced reporting of progress against objectives.
Introduction: What Businesses need to know
Accountability Through Five-Year Review Cycles
The revised standard strengthens accountability by introducing more structured review periods.
Rather than relying on distant target dates, businesses will be expected to demonstrate regular progress and reassess targets through defined review cycles.
This creates greater focus on continual improvement and ensures climate strategies remain aligned with emerging business risks, technology developments and regulatory expectations.
What this means:
- More frequent target reviews.
- Improved governance arrangements.
- Greater emphasis on yearly progress monitoring.
- Clearer ownership of climate objectives.
New Expectations Based on Org Size and Location
For the first time, the standard introduces differentiated requirements based on organisation size and market context, recognising that implementation challenges vary across geographies and business types.
Larger organisations and those operating in more mature markets are expected to meet more demanding requirements, while smaller organisations may benefit from additional flexibility.
What this means:
- Reporting expectations will vary by organisation.
- Governance requirements will become more stringent for larger businesses.
- Supply chain engagement requirements are likely to increase.
Scope 2 Moves Beyond Renewable Electricity
The revised framework introduces a broader focus on Low Carbon Electricity (LCE).
While renewable electricity remains important, eligible solutions may increasingly include other low-carbon generation technologies that meet defined emissions criteria.
Organisations will also be expected to demonstrate practical action through:
- Energy efficiency improvements.
- On-site generation projects.
- Power Purchase Agreements (PPAs).
- Appropriate market-based procurement mechanisms.
The Role of Environmental Market Instruments
A notable development within the revised standard is the clearer recognition of environmental market mechanisms as part of a broader decarbonisation strategy.
While direct emissions reduction remains the priority, certain market-based solutions can support progress where operational reductions are not immediately achievable.
Any such approach must be supported by robust governance, transparency and credible accounting methodologies.
Key principle
Environmental market instruments should complement operational decarbonisation activities rather than replace them.
Emerging Energy Procurement Principles
Future electricity procurement is expected to place greater emphasis on:
- Near: Energy generated within a relevant geographical region.
- New: Generation assets that contribute to additional grid decarbonisation capacity.
- Now: Closer alignment between when electricity is generated and when it is consumed.
These developments signal a move towards higher quality energy procurement and greater transparency.
Key principle
Environmental market instruments should complement operational decarbonisation activities rather than replace them.
Scope 3: Greater Flexibility, Greater Responsibility
Scope 3 emissions remain one of the most challenging areas of corporate decarbonisation.
The new approach provides organisations with greater flexibility by allowing them to concentrate effort on the highest-emitting areas of their value chain.
Rather than requiring identical treatment across all categories, organisations can adopt more targeted approaches based on their operational footprint and influence.
What this means:
Greater focus on material emission categories.
- More supplier engagement activity.
- Enhanced value chain collaboration.
- Category-specific reduction strategies.
- Increased visibility of supplier carbon performance.
The overall expectation remains clear: organisations must demonstrate meaningful efforts to reduce value chain emissions rather than simply report them.
Climate Contributions and Ongoing Emissions Responsibility
The revised framework also recognises that some emissions may remain difficult to eliminate in the near term.
As a result, there is growing emphasis on wider climate contributions that support global decarbonisation efforts while organisations continue reducing their own emissions.
The standard introduces the concept of Ongoing Emissions Responsibility, encouraging organisations to support wider climate mitigation activity while continuing to reduce their own emissions.
This reinforces the principle that:
- Direct emissions reductions come first.
- Residual emissions require a structured management approach.
- Climate finance and verified mitigation activities may support broader climate action objectives.
Transition Plans
Transition plans are becoming a central component of credible climate strategies, linking targets with implementation, investment decisions and organisational accountability
Implications for Your Organisation
- Organisations should consider:
- Reviewing existing SBTi commitments.
- Strengthening Scope 3 strategies.
- Improving supplier engagement programmes.
- Building more detailed transition plans.
- Enhancing carbon governance structures.
- Improving reporting and data quality processes.
- Preparing for increased assurance requirements.
- Strengthening collaboration between sustainability, procurement, operations and finance teams.
Those that begin preparing now will be better positioned as expectations around evidence, transparency and accountability continue to evolve.
How Auditel Can Help
Our carbon specialists support organisations through every stage of the decarbonisation journey, helping translate emerging requirements into practical business action.
Carbon Footprinting
- Scope 1, 2 and 3 assessments
- Baseline carbon measurement
- Data quality reviews
Science Based Targets Support
- SBTi readiness assessments
- Gap analysis against emerging requirements
- Target development and validation support
- Net zero pathway design
Supply Chain Carbon Management
- Supplier engagement programmes
- Scope 3 data collection frameworks
- Product carbon footprinting
- Procurement decarbonisation strategies
Transition Planning
- Decarbonisation roadmaps
- Reduction opportunity assessments
- Investment prioritisation
- Delivery planning and tracking
Governance and Reporting
- Carbon governance frameworks
- Audit-ready reporting processes
- Disclosure support
- Ongoing strategy reviews
Next Steps
Auditel helps organisations understand their true carbon footprint, identify reduction opportunities, and build a credible, data-driven pathway to Net Zero. Our approach blends technical rigour with commercial insight, ensuring sustainability delivers real business value.
