SBTi 2.0: A New Paradigm for Corporate Climate Strategies – and How Companies Should Prepare

by Dr. Stephan Lienin and Robert Bütler, Sustainserv

The Science-Based Targets initiative (SBTi) has released a draft of its Corporate Net- Zero Standard (CNZS) Version 2.0 – a comprehensive update that redefines how companies set, validate, and implement climate strategies. While the new standard is expected to apply from 2027 onwards, companies should continue setting targets under the current frameworks – Net-Zero Standard 1.2 and Near-Term Target Criteria 5.2 – which will remain valid for five years or until the end of 2030. For those validating targets in 2025 or 2026, SBTi plans to provide a pathway to align Scope 3 targets with the new standard. This staged transition allows companies to maintain climate credibility while preparing for the more stringent and performance-focused requirements that lie ahead.

The transition from ambition to accountability brings new challenges – and demands a proactive, thoughtful response from organizations navigating the path to net-zero.

From one-time validation to continuous performance

The most striking change in SBTi 2.0 is the move away from one-time target validation. Companies will be assessed repeatedly across five-year cycles, with their actual decarbonization outcomes scrutinized against their commitments. This evolution strengthens the credibility of corporate climate leadership but also requires companies to rethink the design and pacing of their mitigation activities.

Moreover, organizations must present detailed Climate Transition Plans within a year of target approval, incorporate third-party assurance for GHG inventories (for certain categories of companies), and focus their Scope 3 reduction efforts on emissions categories with at least 5% of the total footprint.

The implications are clear: Climate strategies must be living, auditable documents – not static ambitions set once and filed away.

Sustainserv’s recommendations for companies

In light of these upcoming changes, several strategic actions are especially critical:

• Maintain momentum under the current standard
  Companies should not delay setting near-term or net-zero targets while awaiting the new rules. Targets validated under Version 1.2 will remain valid through 2030 or until the end of the current target period. Early action not only supports credibility but also builds internal alignment ahead of stricter requirements.
• Develop actionable, traceable transition plans
  Future transition plans will need to go beyond high-level ambitions. They should set clear milestones, allocate responsibility internally, and provide mechanisms for tracking and verifying implementation. Companies that invest in robust planning today will be better positioned to navigate both internal governance and external reporting demands tomorrow.
• Strengthen data readiness and assurance processes
  With limited assurance becoming mandatory for many, companies should assess their GHG data systems. Priority should be placed on emission- intensive and material activities – particularly Scope 3 categories where control is higher, such as procurement of goods and services.
• Adopt non-emissions KPIs for value chain decarbonization
  SBTi 2.0 encourages the use of metrics beyond raw emission reductions, such as the percentage of suppliers with science-based targets or the share of low- carbon products sourced. Building tracking systems around these indicators will help companies both manage progress and foster broader industry shifts.
• Evaluate carbon removal strategies carefully
  The updated framework provides new flexibility to set separate carbon removal targets for Scope 1 emissions. Organizations should begin considering where removals fit into their net-zero strategy – recognizing that these should complement, not replace, direct emission reductions.
• Engage proactively with stakeholders
  Preparing for SBTi 2.0 will require close collaboration across internal departments and external partners, including suppliers, customers, and investors. Companies that build these relationships will be better equipped to drive collective action across their value chains.

While SBTi 2.0 introduces important improvements in consistency and accountability, it also increases the compliance burden — particularly for companies with limited resources. Five-year validation cycles, detailed transition planning, and third-party assurance are all significant undertakings.

Success will require a balance: investing in systems and processes that deliver rigor, while also keeping climate action grounded in what is operationally and economically feasible.

Looking ahead

The release of SBTi 2.0 signals a new era for corporate climate action: one defined not by promises, but by proof. Organizations that anticipate and prepare for these higher expectations will not only avoid disruption — they will position themselves as credible leaders in a landscape where scrutiny around climate claims continues to intensify.

Preparing early, investing in data quality, building robust plans, and fostering collaboration across value chains will be essential steps in making the transition successfully.

The path to net-zero is getting steeper. But with clarity, commitment, and careful preparation, companies can navigate it — and help shape a more sustainable future.

For a more detailed analysis of the upcoming changes and further practical insights on how to prepare for SBTi 2.0, you can read the full article here: (English | German).