Science-based targets: from commitment to validated net-zero pathway.
The Science Based Targets initiative (SBTi) defines the standard for credible corporate climate action. More than 10,000 companies have had science-based targets validated through SBTi (roughly 13,000 including those with active commitments). With the publication of the Corporate Net-Zero Standard Version 2.0 in June 2026, the framework has evolved significantly — introducing company categorization, new target-setting methods across all three scopes, an implementation hierarchy, and ongoing emissions responsibility requirements. This guide covers everything from foundational concepts to the V2.0 changes and what they mean in practice.
22 min read · Last reviewed July 9, 2026
FAQ
What is SBTi 2.0? +
What is the difference between SBTi Category A and Category B? +
When does SBTi V2.0 become mandatory? +
Do I need Scope 3 targets under SBTi V2.0? +
What is the SBTi implementation hierarchy? +
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 and validates 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 website and the company gains the credibility of third-party scientific endorsement.
As of 2026, more than 10,000 companies have had science-based targets validated through SBTi (roughly 13,000 including active commitments), 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).
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 2026) refined technical requirements but maintained the same architecture. The V1 approach used a one-size-fits-all model: the same requirements applied regardless of company 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.
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: Category A companies must begin addressing at least 1% of ongoing emissions with eligible carbon removals under the Ongoing Emissions Responsibility program.
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.
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 must address 1%+ of ongoing emissions with carbon removals.
Companies reach residual emissions levels. 100% of residual emissions neutralized.
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.
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 covers companies with annual turnover above €50 million in high-income countries, and above €450 million in lower-income countries. 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) carbon removal purchasing.
Category B covers small and medium-sized enterprises (SMEs) in all markets with turnover below €50 million, as well as companies in lower-income countries with turnover below €450 million. For Category B, certain requirements are optional: Scope 3 target-setting, transition plan disclosure, and assurance of target base-year data. However, SBTi strongly 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 categorization applies to the consolidated entity, not individual subsidiaries or business units.
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.
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:
The implementation hierarchy
V2.0 introduces a three-tier hierarchy for prioritizing actions. Companies must exhaust higher-priority tiers before using lower ones, and document why Tier 2 or 3 actions are necessary.
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. Exhaust these options before moving to Tier 2.
Market instruments (energy attributes, commodity certificates) are recognized under clear integrity guardrails: volume matching, transparent registries, and verifiability standards.
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.
Mandatory requirement from 2035: Category A companies are required to address at least 1% of their ongoing Scope 1–3 emissions with eligible carbon removals, including a defined and increasing share of long-lived removals. This percentage rises linearly to 100% of residual emissions at the net-zero target year.
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.
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. Transition plans must be disclosed (mandatory for Category A, 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 assurance model with target validation (at submission) and end-of-cycle assessments conducted by recognized validation bodies. This replaces the previous model of one-time validation with ongoing scrutiny of progress. Companies must demonstrate continuous improvement through regular reporting, and end-of-cycle assessments evaluate whether the company has used all available levers to deliver on its targets.
Public commitment change: Companies no longer need to make a public net-zero commitment before setting targets. Internal board approval suffices. SBTi made this change to reduce legal and reputational risk as a barrier to adoption — companies can now 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 and country classification.
- Develop targets: Build a comprehensive GHG inventory covering Scope 1, 2, and 3. Select base years (no earlier than the standard permits), 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: Recognized validation bodies review 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. Under V2.0, minimum progress criteria apply for target renewal.
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 work.
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