SBTi new Corporate Net-Zero Standard: What NZ businesses need to know

The Science Based Targets initiative (SBTi) has released Version 2.0 of its Corporate Net-Zero Standard - the world's leading benchmark for science-aligned climate targets. This new version signals a broader shift from setting targets to delivering them.

What has changed?

Version 2.0 of SBTi's Corporate Net-Zero Standard is the first major update since the framework launched in 2021. The updated standard introduces new approaches to target setting and implementation, with greater recognition of the challenges faced by different company sizes, sectors and emissions profiles.

Why it matters to New Zealand businesses

• SBTi remains the leading global benchmark for developing emissions reduction targets aligned with climate science, influencing investor, customer and procurement expectations worldwide.
• The focus is shifting from setting targets to delivering them, with new requirements that place greater emphasis on implementation, transparency and accountability.
• The standard recognises different business realities, introducing scaled expectations for different organisation types and sectors.
• Scope 3 emissions are becoming more strategic, with additional flexibility for companies to focus on the most material emissions sources while increasing engagement across their value chains.
• Export-focused businesses and suppliers to multinationals are likely to feel increasing pressure to demonstrate credible climate action, regardless of whether they pursue formal SBTi validation.

Toitū’s view

The most significant shift in SBTi v2.0 is the move towards embedding climate action within core business decision-making. Success is increasingly being measured not only by the science-based targets organisations set, but by how credibly they can demonstrate progress over time.

As with all leading-practice developments, Toitū is carefully assessing the implications of SBTi v2.0 for our Climate Impact Programme and advisory services. We will communicate any relevant updates as they emerge, giving clients confidence that our programmes continue to align with evolving global best practice and internationally recognised standards.

While this assessment continues, many of the principles introduced in SBTi v2.0 are already reflected in Elevate, our optional programme standard for ambitious organisations. From transition planning to supplier engagement and continuous improvement, Elevate supports many of the capabilities now being emphasised within the updated standard.

The ISO 14060 Net Zero Aligned Organizations draft standard (currently under consultation until 10 August 2026) will be another important consideration for Toitū and businesses looking to keep their climate programmes credible and globally relevant.

What to do next

Climate Impact Programme members:

• SBTi target validation is optional: There is no requirement under Foundation or Elevate certification to obtain SBTi validation or demonstrate full alignment with either the current or forthcoming SBTi standard.

Members choosing to pursue SBTi validation:

• Align activity to SBTi’s timeline: Note that v2.0 takes effect from 31 January 2027, with a transition period allowing organisations to continue using the previous version until 31 January 2028.
• Focus on implementation: Prioritise robust transition planning, material Scope 3 emissions management, and governance processes that can demonstrate ongoing progress and accountability.

Toitū's advisory team remains available to support organisations seeking SBTi validation or looking to understand what the latest changes mean for their climate strategy.

Closing thoughts

SBTi's updated Corporate Net-Zero Standard reflects a maturing climate landscape. The emphasis is no longer solely on making net-zero commitments, but on demonstrating credible action, transparent reporting and continuous progress. While the new framework introduces greater flexibility in some areas, it also raises expectations around accountability, implementation and evidence-based decision-making.

Supporting your strategy

If you’re a Toitū client and would like to discuss the role of science-based standards or targets, reach out to your dedicated Programme Lead or our Client Support Team at support@toitu.co.nz, or call 0800 366 275 (option 2) at any time.