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After an extensive revision process, the Science Based Targets initiative (SBTi) has published Version 2.0 of its Corporate Net-Zero Standard on 11 June. This is the biggest development of the framework since it launched in 2021, is significantly more flexible than the V1 and will aim to remain the gold standard verified net zero target. 

Why the change? 

When the original (version 1) of the standard launched in 2021, it established a common definition of corporate net zero that quickly gained the confidence from both ‘real economy’ businesses and the finance sector, with over 10,000 organisations adopting it.  

Since the landscape has shifted as businesses who perhaps rushed to sign up have learned (sometimes painfully) that net zero is harder than they thought, particularly for scope 3, which can exceed 90% of a tech firm’s emissions.  

The change responded to these concerns, which also has a more forgiving approach to offsetting, and it shifts the SBTi from a pure (and expensive) standard setter to being more involved in the implementation of net zero strategies.  

What has changed compared to the old version? 

The headline is a move away from a generic approach (which was held up as a ‘pro’, but as firm’s climate maturity evolved is now seen as a ‘con’), with a range of options on meeting targets, but still staying within established climate science.  Specific features and changes of the new version include: 

• More focus on implementation. Setting a target is now framed as the start, not the end, with enhanced transparency on reporting progress and continuous improvement over time. 
• An implementation hierarchy. Companies should prioritise direct emissions reductions across operations and value chains, complemented by interventions that transform the systems they operate in where direct decarbonisation isn't feasible. This is in response to firms wanting a closer alignment with the GHG Protocol. 
• Targets on a "best efforts" basis. The new version acknowledges that factors outside a company's control can affect progress (such as national level grid decarbonisation efforts). Firms that are transparent about barriers and use all available levers can stay within the framework rather than losing their accreditation (this has happened numerous times recently). 
• Recognition for tackling ongoing emissions. A new voluntary recognition mechanism encourages short-term action on residual emissions (including via carbon removals), alongside a longer-term requirement for larger companies to take progressive responsibility for them. 

For businesses now concerned they need to get re-accredited and assessed, a feature of V2 is that is recognises validated targets set under Version 1.3.  

For members interested in adopting this more flexible version of the standard, have a read (it is free here) sign up here to learn about webinars and newsletters (we are looking to run one ourselves for members), and see how it aligns with your plans.  

The UK may yet still mandate transition plans, and a key message is to look at these standards (and the soon to be launched ISO Net Zero Standard) as a potential route to compliance. 

Learn more about the techUK Climate, Environment and Sustainability Programme here.