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The Rise of Science-Based Targets 2.0 in Corporate Sustainability

Corporate Sustainability
The Rise of Science-Based Targets 2.0 in Corporate Sustainability

A New Era for Science-Based Climate Targets

The Science Based Targets initiative (SBTi) has unveiled a major proposed revision to its Corporate Net Zero Standard, marking a significant shift in how companies set and pursue climate goals. Dubbed ‘Corporate Net Zero 2.0’, this 132-page draft overhaul aims to provide more flexibility for businesses while maintaining scientific rigor.

Key Changes in the Proposal

Faster Target Setting: Large companies will now have just one year instead of two to set validated targets after committing. This accelerated timeline reflects the urgency of climate action.

Baseline Year Flexibility: Companies can now use a baseline year up to three years before their initial validation, rather than being limited to 2015 onwards. This allows for more representative starting points.

Increased Data Scrutiny: Annual evaluations of baseline emissions data will be required, along with reassessments after major organizational changes. This ensures targets remain relevant as companies evolve.

Climate Transition Plans: Within 12 months of target validation, companies should publish detailed plans outlining how they’ll achieve their climate goals. This promotes transparency and accountability.

Enhanced Supply Chain Focus: By 2035, companies are expected to have full traceability for their most emissions-intensive activities. This acknowledges the critical role of Scope 3 emissions in corporate footprints.

Implications for Businesses

The proposed changes signal a maturing of the science-based targets framework, recognizing both the urgency of climate action and the practical realities faced by businesses. Companies will need to:

  1. Accelerate their climate strategy development
  2. Invest in more robust emissions data collection and management systems
  3. Engage more deeply with their supply chains
  4. Develop comprehensive climate transition plans
  5. Prepare for increased scrutiny and potential ‘spot checks’ on their climate data and progress

Industry Reactions

Initial reactions to the proposal have been mixed. Many sustainability professionals welcome the increased flexibility, particularly around baseline years. However, some worry that relaxing certain requirements could slow overall progress.

Alberto Carrillo Pineda, Chief Technical Officer at SBTi, emphasized that ‘This is an iterative process and the public consultation will help us identify the changes we can make to ensure SBTi’s revised standard creates impact at scale as effectively as possible.’

What’s Next

The draft is open for public consultation until June 1, 2025. SBTi will then review feedback and incorporate changes into a second draft for further consultation. The final version is expected to be approved and published by the end of 2026.

Companies can continue using the current methodology for 2025 and 2026 target-setting. Starting in 2027, the new Corporate Net Zero Standard 2.0 is expected to become the required framework.

The Bottom Line

As climate change accelerates and stakeholder pressure intensifies, having a credible, science-aligned climate strategy is no longer optional for businesses. The proposed SBTi revisions aim to make this process more accessible while maintaining the integrity that has made science-based targets the gold standard for corporate climate action.

Companies should closely monitor the development of this new framework and begin preparing for its implementation. Those who embrace these evolving standards will be better positioned to navigate the low-carbon transition, manage climate-related risks, and capitalize on the opportunities of a sustainable future.

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