The Science Based Targets initiative (SBTi) has released its Corporate Net-Zero Standard Version 2.0 for public consultation (open until 1 June 2025).


The draft introduces proposed changes to how companies set, track, and achieve net zero targets — aiming to make science-aligned climate action more accessible and practical across business types and sectors.


As a science-led certification provider, Toitū Envirocare welcomes the release of this draft.



What’s important to understand


This paper is in draft consultation phase and does not yet confirm future requirements for companies seeking SBTi validation. Companies with existing targets and/or currently developing targets can continue under current criteria, and a transition path to v2.0 will be available.


The goal of Net Zero v2.0 is clear: to make science aligned target setting more accessible and achievable for a wider range of companies – regardless of size, location, value chain profile, growth stage, data quality journey, and available mitigation options.


While much of the previous thinking signalled in the SBTi Scope 3 discussion paper has been incorporated, there are additional proposed requirements. Below is a curated summary of the key shifts we’re observing as of May 2025.



Key observations from the draft


Two tier classification

Companies are now categorised as Category A or Category B. Category A companies must follow all criteria, while Category B companies are optional. Of interest for Aotearoa is how many companies might fall into Category B. There’s some significant flexibility to these companies; most notable is that the full value chain inventory must be assessed every 3 years (and relevant sources annually), and Scope 3 targets are optional.


Scope 2 requirements strengthened

Companies must now set dual targets for Scope 2 emissions — covering both location-based and market-based approaches — with enhanced integrity standards for the latter.


Shift in scope 3 methodology

The previous mandated threshold of 67% (near term) and 90% (long term) target coverage has been replaced. Instead companies are asked to prioritise ‘most relevant sources’ and apply the introduction of benchmarks for activities defined as emissions intensive, and ‘non-emissions’ methods of tier 1 supplier alignment, and activity level procurement/revenue alignment.


More emphasis on improving inventory quality

Companies are expected to enhance the quality of their emissions data over time to provide more decision useful, primary data, particularly in the upstream supply chain, with traceability back to supplier specific performance. This is balanced by caveats regarding the challenge of assessing performance against a comparable base year, which Toitū has recently been doing thinking on as well. v2.0 indicates there will be some form of option that enables what appears to be ‘split target start years’.



Alignment with Toitū’s Climate Impact Programme


We’re pleased to see that many of the proposed criteria in v2.0 align with Toitū’s existing approach already established within its Climate Impact Programme:


  • Verified inventories (Scope 1 & 2 minimum, partial scope 3),
  • Requirement for transition plans to demonstrate target achievability.
  • The need to repeat a series of short-term cycles until Net Zero end state is achieved

The draft also marks a shift from SBTi’s stance on items it was previously ‘sitting on the fence’ on, giving a stronger signal on acceptance of:


  1. Market based approaches in Scope 3 (e.g. ‘book and claim’) is acceptable subject to integrity components being met
  2. Companies are encouraged to act on their ‘ongoing emissions’ that occur on their journey to Net Zero end state via Beyond Value Chain Mitigation (which includes carbon credits, direct financing, other contractual methods).


Want to read more about the Net Zero v2.0?


There’s a lot to take in with this draft v2.0 standard including new concepts, new terminologies, and some requiring knowledge of other related discourse like the Greenhouse Gas Protocol. If you want to read more, it’s recommended you start with the content published by SBTi themselves. Here’s a guide on the level to jump in at:


  1. If SBTi is relatively new to you, start at the ‘key features at a glance’
  2. If you’re already familiar with the current SBTi Net Zero standard, take a look at the ‘summary of changes’ (pg. 10).
  3. If you want a deeper dive, pick sections of the standard (or the whole standard) of interest to you, divided into: commitment and validation process, establishing the inventory base year, setting the targets, beyond value chain mitigation, assessing and communicating progress against targets, making claims. Alternatively, refer to Annex B for a good birds eye view of all criteria and links to more detail from there.