SBTi’s Version 2.0 represents a shift from a target-centric approach to an end-to-end model that emphasizes implementation and continuous improvement. The new framework introduces a validation model that spans the full emissions reduction lifecycle: initial ambition, performance assessment, progress reporting, and target renewal. This model aims to close the accountability gap by requiring companies to demonstrate real-world progress, not just commitments.
Companies must now assess and communicate progress at the end of each five-year cycle, setting new targets that address any performance gaps. This process reinforces accountability and provides a structured pathway to reach—and maintain—a net-zero-aligned state. Importantly, the standard retains 1.5°C as its central ambition, underscoring the need for accelerated action as the window to limit global warming narrows.
Version 2.0 introduces a differentiated approach based on company size and geographic location. Category A companies—large and medium-sized entities in high-income countries—are subject to comprehensive criteria, while Category B companies—SMEs in lower-income nations—are granted flexibility, with optional criteria in recognition of resource constraints. This structure broadens accessibility while preserving rigor for entities with greater climate impact.
Recognizing both the criticality and complexity of value chain emissions, the revised standard abandons the fixed-percentage approach of previous versions. Instead, it prioritizes action on the most relevant emission sources and introduces non-emissions metrics such as procurement from net-zero-aligned suppliers and revenue from low-carbon products and services. This allows companies to substantiate progress even when primary emissions data are limited, aligning with real-world data challenges.
Beyond Value Chain Mitigation (BVCM) is given greater emphasis, rewarding companies that proactively address emissions beyond their operations. By recognizing investments in mitigation activities—such as sustainable aviation fuel or clean energy finance—SBTi encourages companies to take broader responsibility for emissions released during their net-zero transition. These measures are framed as critical to accelerating decarbonization across sectors and geographies.
For companies operating in an increasingly regulated and disclosure-driven environment, aligning with Version 2.0 is both a risk mitigation strategy and a competitive advantage. The new requirements for climate transition plans, third-party assurance of emissions inventories, and transparent reporting align closely with evolving mandates such as the EU Corporate Sustainability Reporting Directive (CSRD) and recommendations from the UN High-Level Expert Group.
Adopting the revised standard enables businesses to attract sustainable capital, manage reputational and regulatory risks, and demonstrate leadership in climate governance. As scrutiny intensifies from investors, customers, and regulators, credibility in net-zero commitments is fast becoming a core component of long-term business resilience.
