What Is SBTi?
The Science Based Targets initiative (SBTi) is a partnership between CDP, the World Resources Institute (WRI), the United Nations Global Compact, and the World Wide Fund for Nature (WWF). It defines and validates corporate greenhouse gas reduction targets that are consistent with the Paris Agreement goal of limiting warming to 1.5°C above pre-industrial levels.
SBTi provides sector-specific target-setting methodologies. Its wholly owned subsidiary, SBTi Services, checks whether a company's proposed emission reduction targets are ambitious enough to align with climate science. Once validated, targets are publicly listed on the SBTi Target Dashboard and the company gains the credibility of third-party scientific endorsement.
As of September 2026, more than 11,600 companies have had science-based targets validated, and roughly 13,900 companies appear on the SBTi Target Dashboard with either a validated target or a commitment, making it the dominant framework for corporate climate target-setting worldwide. SBTi validation has become a signal of credibility for investors, customers, regulators, and procurement teams evaluating supply chain sustainability.
The SBTi ecosystem includes the Corporate Net-Zero Standard (the flagship framework), the Corporate Near-Term Criteria (for companies setting only near-term targets), sector-specific guidance for financial institutions and FLAG (Forest, Land, and Agriculture) companies, and SBTi Services (the operational arm that manages target validation).
Both sector tracks are being rebuilt around V2.0. SBTi opened a second public consultation on the updated draft Power Sector Net-Zero Standard on July 15, 2026, which closed September 7. The revised draft aligns the power sector criteria with V2.0, updates its pathways to the IEA's 2024 Net Zero Emissions scenario, and clarifies the treatment of transmission and distribution, heat and power generation, and electricity trading. Separately, SBTi issued a call for input on July 30, 2026 to inform a Version 2 of the FLAG Standard, with the call for evidence closing October 8, 2026. FLAG companies should continue setting targets under current guidance in the meantime, using the V2.0 innovations already available to them.
The Corporate Net-Zero Standard: V1 to V2.0
The Corporate Net-Zero Standard is SBTi's flagship framework for aligning corporate targets with net-zero by 2050. Version 1.0 launched in October 2021 and established the core requirements: near-term targets for rapid emission reductions, long-term targets reaching at least 90–95% absolute reduction, and neutralization of residual emissions through permanent carbon removals.
Version 1.3.1 (the latest V1 release, updated April 14, 2026) refined technical requirements but maintained the same architecture. Outside a streamlined route for SMEs, V1 applied the same requirements to every company regardless of size, geography, or sector context.
Version 2.0, published June 11, 2026, is a full revision. Developed through two rounds of public consultation (March–June 2025, November–December 2025), two phases of pilot testing, and input from five thematic Expert Working Groups, V2.0 represents the most significant evolution of the standard since its inception.
The strategic shift in V2.0 is from ambition-setting to implementation partnership. Where V1 focused primarily on validating target ambition, V2.0 introduces tools for implementation, progress tracking, and continuous improvement. SBTi has explicitly repositioned itself from a target-validation body to a "transformation partner."
V2.0 Key Dates and Transition Timeline
Understanding the V2.0 timeline is critical for planning. Here are the key milestones:
June 11, 2026: Version 2.0 published. Companies can begin preparing targets immediately. The standard document and key target-setting resources are available now.
July 14, 2026: SBTi Services launched a Readiness Assessment Service. Companies with targets validated under any earlier version of the corporate criteria can request a structured report covering their likely category, how existing targets map to V2.0's scope-specific structure, where they fall in the validation cycle, and whether their current inventory and assurance arrangements meet V2.0 requirements across Scopes 1, 2, and 3. Taking part does not affect validation outcomes.
September 24, 2026: The SBTi Target Dashboard moves to revised commitment and target statuses, with new terminology, updated classifications, and updated status descriptions. The Commitment and Target Statuses document (Version 2.0, August 2026) replaces the previous Commitment Compliance Policy on the same date, and regional classifications shift to the UN M49 standard.
Q4 2026: Additional interpretation guidance expected, covering the implementation hierarchy for Scope 1 and the role of projects in target implementation. The Interoperability and Recognition Framework for market instruments is also in development.
February 1, 2027: The SBTi Services Validation Portal opens for V2.0 target submissions. Companies can submit targets under either V1.3.1 or V2.0 from this date.
January 31, 2028: Last day to submit targets under V1.3.1. After this date, V2.0 becomes mandatory for all new target submissions.
2035: Under the provisions drafted in V2.0, Category A companies begin addressing at least 1% of ongoing emissions with eligible carbon removals under the Ongoing Emissions Responsibility program. SBTi has said it will review this requirement in Version 3 before it takes effect.
Companies setting targets in 2026 should use V1.3.1 now — there is no reason to wait. Many V2.0 innovations will be available through transitional arrangements. Companies setting targets in 2027 can choose either version. Companies planning submissions from 2028 onward should prepare for V2.0.
Companies whose mandatory five-year review falls due before V2.0 or a relevant Sector Standard is available can request an extension while they prepare to transition, and Scope 3 targets can be extended separately from the rest of the target set. Extensions are considered case by case, and companies have to show they have prepared for the transition.
Transition Timeline
Use V1.3.1 now
Submit under V1.3.1 at the earliest opportunity. Well-established, combined Scope 1+2 flexibility. V2.0 innovations available through transitional arrangements.
Choose V1.3.1 or V2.0
Both accepted Feb 2027 through Jan 2028. V1.3.1 is simpler; V2.0 offers new methods (asset transition, category-specific Scope 3).
V2.0 mandatory
Mandatory from Feb 1, 2028. Determine your category, evaluate target-setting methods, assess Scope 3 coverage, develop transition plan.
Original standard launched with near-term and long-term target requirements.
Full revision with company categories, implementation hierarchy, OER, and governance requirements.
Additional guidance on implementation hierarchy, Scope 1, and role of projects.
SBTi Services portal accepts V2.0 target submissions. V1.3.1 also still accepted.
Last day to submit targets under V1.3.1. V2.0 becomes mandatory.
Category A companies address 1%+ of ongoing emissions with carbon removals. SBTi will review this requirement in V3 before it takes effect.
Companies reach residual emissions levels by 2050 at the latest. 100% of residual emissions are neutralized with removals.
Company Categories: A vs. B
One of V2.0's most significant structural changes is the introduction of company categorization, replacing the previous one-size-fits-all approach.
Category A: In any country, a company is Category A if its net turnover is at least €450 million or it has at least 1,000 full-time equivalent employees. In high-income countries (World Bank classification), a company is also Category A if its Scope 1 and 2 emissions are at least 10,000 tCO₂e, or if it meets at least two of the following: balance sheet of €25 million or more, net turnover of €50 million or more, 250 or more FTEs. Category A companies face the full set of V2.0 requirements, including mandatory Scope 3 targets, transition plan disclosure, base-year data assurance, and (from 2035, as drafted) carbon removal purchasing.
Category B: Every company that does not meet the Category A thresholds. In practice this means SMEs in high-income countries and most companies in lower-income countries below €450 million turnover and 1,000 FTEs. For Category B, certain requirements are optional: Scope 3 target-setting, transition plan disclosure, and assurance of target base-year data. SBTi encourages Category B companies to go beyond the minimum requirements where feasible.
A company's category is determined at the time of registration and reconfirmed at target validation. The thresholds are assessed on consolidated figures for the whole corporate group, averaged over the two most recent financial statements, even when targets are set for a subsidiary. Geography follows the jurisdiction of the ultimate parent.
This differentiation makes SBTi accessible to a much broader set of companies. Under V1, the uniform requirements often deterred smaller companies from participating. Category B provides a viable entry point while maintaining a clear pathway for increasing ambition over time.
The Implementation Hierarchy
V2.0 introduces an entirely new concept: the implementation hierarchy. This provides structured guidance on how companies should prioritize actions to deliver against their targets.
The hierarchy has three tiers, in order of priority:
Actions that directly reduce emissions within your own operations and value chain.
- Fuel switching (gas to electric)
- Energy efficiency improvements
- Electrification of heating/cooling
- Material substitution
- Supplier engagement for primary data
Default. Prioritize these wherever emissions can be reduced directly.
The hierarchy also recognizes market instruments (energy attributes, commodity certificates) under clear integrity guardrails: instruments must use volume matching, be handled through transparent registries, and meet verifiability and additionality standards. Different chain-of-custody models (mass balance, book-and-claim) are permitted subject to these guardrails.
The practical implication is that companies need to show they prioritized direct action, and to justify sector-level actions by pointing to the structural constraint that blocked lower tiers. SBTi Services checks how the hierarchy was applied at the end-of-cycle assessment. This requires implementation planning that maps each action to the hierarchy.
Ongoing Emissions Responsibility (OER)
V2.0 replaces the previous "Beyond Value Chain Mitigation" (BVCM) recommendation with the Ongoing Emissions Responsibility (OER) program. OER is a tiered recognition framework that acknowledges companies taking responsibility for the emissions they continue to release on the path to net-zero.
OER has both voluntary and mandatory components:
Voluntary recognition tiers: Companies can earn recognition by addressing a defined share of their ongoing emissions through climate contributions. These contributions include carbon removal credits, emission reduction credits, direct investments in mitigation projects, low-carbon R&D, adaptation and resilience, and loss-and-damage support. Three tiers are available based on the percentage of ongoing emissions addressed and the scope of coverage.
Removals requirement from 2035: As drafted in V2.0, Category A companies address at least 1% of their ongoing Scope 1–3 emissions with eligible carbon removals from 2035, including a defined and increasing share of long-lived removals (at least 10% in 2035). The percentage rises linearly to 100% of ongoing emissions at the net-zero target year, and no later than 2050. SBTi describes this as a future requirement that it will review in Version 3 of the standard before it takes effect.
This represents a significant shift from V1, which required 100% neutralization of residual emissions only at the net-zero target year using permanent removals. V2.0 introduces a progressive requirement that starts earlier (2035) and scales up over time, ensuring that companies build removal capacity well before they reach their net-zero year.
Carbon credits and removals are explicitly positioned as complements to direct emission reductions, never substitutes. The standard maintains strict integrity guardrails: credits must result in measurable reductions or removals, meet additionality requirements, address leakage, and use transparent, secure tracking registries to prevent double-counting.
Target-Setting Under V2.0
Pick a scope to see what V2.0 requires and which target-setting methods are available.
V2.0 separates Scope 1 and Scope 2 targets (V1 allowed combined targets) and provides three science-based approaches for Scope 1. All companies must set targets covering 100% of Scope 1 emissions.
Companies can combine approaches across different parts of their Scope 1 inventory — for example, using absolute reduction for office heating and asset transition for manufacturing equipment. The key requirement is that the combined target covers 100% of Scope 1 emissions and aligns with the 1.5°C pathway.
Available methods
All companies must set targets covering 100% of Scope 1 emissions. Three methods available:
Governance, Transition Planning, and Assurance
V2.0 introduces new governance and accountability requirements that embed climate targets into corporate decision-making.
Board-level approval: Companies must secure formal approval of their science-based targets at the highest level of the organization. This moves SBTi from a sustainability department exercise to a board-level commitment.
Transition planning: Companies must develop and maintain a transition plan outlining how targets will be implemented — including specific actions, investment plans, and timelines. Every company has to have a transition plan. Category A companies also have to publish it within 15 months of target validation. Publication is optional for Category B. This requirement aligns SBTi with the broader trend toward mandatory transition planning in frameworks like CSRD and ISSB.
Assurance model: V2.0 introduces a formalized cycle: target validation at submission, possible spot checks during the cycle, and an end-of-cycle assessment by SBTi Services before the next set of targets is validated. Category A companies also have to obtain independent third-party assurance of their base-year data and of the data behind their progress assessment. SBTi Services does not verify emissions data itself. Under V1, scrutiny after validation was limited to annual progress reporting and the mandatory five-year review. End-of-cycle assessments evaluate whether the company has used the levers available to it to deliver on its targets.
No public pledge before validation: Early drafts of V2.0 proposed requiring a public net-zero commitment before a company could validate targets. Consultation feedback flagged legal and reputational risk, so the final standard dropped the proposal in favor of approval by the highest governing body. As under V1, a public commitment remains optional. Companies can develop and validate targets before making public claims.
The net effect is that V2.0 targets are more deeply integrated into corporate governance. This increases the credibility of validated targets but also increases the organizational effort required to achieve and maintain them.
The SBTi Process: From Registration to Validation
Whether using V1.3.1 or V2.0, the SBTi process follows a structured journey:
- Register: Submit a registration through SBTi Services. Under V2.0, your company category (A or B) is determined at registration based on turnover, headcount, balance sheet, Scope 1 and 2 emissions, and country classification.
- Develop targets: Build a comprehensive GHG inventory covering Scope 1, 2, and 3. Select a base year (under V2.0, the most recent year with complete data), choose target-setting methods for each scope, and model reduction pathways to ensure targets align with 1.5°C. Under V2.0, also develop your transition plan and secure board approval.
- Submit for validation: Submit your targets, supporting data, and documentation to SBTi Services through the Validation Portal. V2.0 submissions require evidence of governance approval, transition planning, and (for Category A) base-year data assurance.
- Validation: SBTi Services reviews the submission against the standard's criteria. If the targets meet requirements, they are validated and publicly listed.
- Report progress: Publish annual progress reports showing emissions trajectory against validated targets. Under V2.0's continuous improvement cycle, this reporting is formalized and feeds into end-of-cycle assessments.
- End-of-cycle assessment and renewal: At the end of each target cycle, progress is assessed against the standard's criteria. Companies set new targets for the next cycle, incorporating lessons learned and updated science. SBTi intends to set minimum progress criteria for renewal under V2.0 in its forthcoming Assurance Manual, so the exact thresholds are not yet published.
SBTi updated its Mandatory Five-Year Review Guidance in August 2026, simplifying the mechanics of step 6 after feedback from the first cohort of companies to go through it. The review cycle starts at a trigger date set at the end of the month five years after a company's most recent validated targets were published. Companies then have six months from that date to submit the review form and twelve months to submit revised targets for validation if the review shows changes are needed. The review is a compliance check rather than an automatic reset: targets that still meet the criteria in force at the time of review do not have to change. Companies that already know their targets need updating can skip the review form and submit directly. Around 300 of the companies on the dashboard have a review due before the end of 2026.
The entire process requires robust, auditable emissions data across all scopes and reporting periods. Companies that invest in reliable measurement infrastructure early find the target-setting and reporting phases significantly easier.
How Gravity Supports SBTi Targets
Setting and delivering against science-based targets is fundamentally a measurement and tracking challenge. The target-setting process requires a comprehensive GHG inventory; delivery requires continuous measurement, reduction planning, and progress reporting.
Gravity connects every stage of the SBTi journey to the same platform used for day-to-day carbon accounting:
Baseline and inventory: Gravity's carbon accounting engine produces auditable Scope 1, 2, and 3 inventories with evidence trails linking every emission figure to its source document. Base-year inventories can be recalculated when structural changes (mergers, acquisitions, methodology updates) occur, ensuring consistency across reporting periods.
Target modeling: Gravity's reduction planning tools model decarbonization scenarios by adjusting energy mix, supplier factors, and operational changes. Companies can compare pathways side by side to identify the most cost-effective route to their target, whether using absolute reduction, intensity reduction, or asset transition methods under V2.0.
Scope 3 automation: SBTi requires Scope 3 targets for most companies (all Category A). Gravity automates supplier engagement, processes supplier responses using AI, and tracks data quality progression from spend-based estimates to primary data over time. This is critical for V2.0's category-specific targets, where granular category-level data drives target-setting.
Progress tracking: Dashboard views show actual emissions trajectory against committed targets, comparing performance to the required reduction pathway. Annual inventory updates feed directly into SBTi progress reporting.
The SBTi process is not a one-time consulting engagement — it is a continuous cycle of measurement, reduction, and reporting that spans years. A platform that handles the underlying data infrastructure makes the entire cycle more manageable and less dependent on external advisors for routine measurement and tracking.