SBTi Corporate Net-Zero Standard Version 2.0: Raising the Bar for Climate Accountability
- Mar 16
- 4 min read
A New Phase for Corporate Net-Zero
In November 2025, the Science Based Targets initiative (SBTi) released the second consultation draft of its Corporate Net-Zero Standard Version 2.0. While updates to climate frameworks are common, this revision represents something more structural. It reflects a broader shift in how corporate climate commitments are judged — moving from ambition-led pledges toward measurable accountability.
Over the past few years, corporate climate pledges have faced increasing scrutiny from regulators, investors, and civil society. Ambitious 2050 targets are no longer enough. Stakeholders are asking how companies plan to act today — not just decades from now. Version 2.0 reflects this changing expectation. It moves beyond high-level ambition and introduces clearer accountability mechanisms that shape how companies manage emissions throughout their decarbonization journey.
With the final standard expected in 2026 and mandatory adoption for new targets likely from 2028 onward, companies have a narrowing window to understand and prepare for what this new framework requires.
The Three-Pillar Framework: From Reduction to Responsibility
At the heart of Version 2.0 is a redesigned three-pillar framework.
First, companies must continue to prioritize deep emissions reductions aligned with 1.5°C pathways. Direct abatement across Scope 1, 2, and especially Scope 3 remains the foundation of credible climate action.
Second, the draft introduces Ongoing Emissions Responsibility (OER), replacing the earlier Beyond Value Chain Mitigation (BVCM) concept. Under Version 1.3, BVCM encouraged companies to support mitigation beyond their value chains, but it was largely voluntary and peripheral. Version 2.0 elevates this idea into a structured responsibility.
OER formalizes the expectation that companies contribute to climate mitigation while emissions are still being reduced. This is particularly significant for organizations with substantial Scope 3 footprints, where value-chain decarbonization often takes years to materialize. OER offers a structured pathway to address emissions during that transition period.
To qualify for OER recognition, companies can either cover at least 1% of their total Scope 1–3 ongoing emissions with high-integrity, ex-post carbon credits, or apply an internal carbon price of at least USD 20 per tonne of CO₂e to at least 1% of emissions. While voluntary until 2035, this mechanism signals where accountability expectations are heading.
Third, the framework emphasizes the gradual use of carbon removals to neutralize residual emissions. From 2035 onward, large companies will be required to use removals to address a rising share of their ongoing emissions — transforming what is optional today into a structural obligation tomorrow.
Carbon Credits Repositioned: Integrated, Not Peripheral
One of the most consequential shifts in Version 2.0 is how carbon credits are treated.
Under the previous standard, credits were mentioned but not fully integrated into near-term strategy. Their role was primarily associated with residual emissions closer to 2050. In contrast, Version 2.0 embeds credits into earlier phases of climate planning through the OER framework.This does not dilute the priority of emissions reductions. Rather, it reframes external mitigation as complementary responsibility rather than optional enhancement.
The draft also tightens quality expectations. Credits must demonstrate clear additionality, transparent accounting, and verifiable, traceable performance. In an environment where integrity concerns have shaped public debate around voluntary carbon markets, SBTi’s stronger language reinforces that only high-quality instruments will count.
From a market perspective, this earlier integration of credits, combined with post-2035 mandatory removal obligations, may gradually reshape demand dynamics. Companies that delay engagement could face supply constraints or price volatility as high-integrity removal capacity becomes increasingly sought after.
What This Means for Corporate Climate Strategy
For corporate sustainability teams, Version 2.0 signals that net-zero strategy must become more integrated and forward-looking.
Beyond internal decarbonization, companies may need to:
Reassess how internal carbon pricing mechanisms align with emerging expectations
Develop clearer carbon credit procurement criteria focused on integrity
Begin mapping long-term exposure to removal credit supply and cost risks
Evaluate how Scope 3 transition timelines interact with OER planning
In practical terms, net-zero is becoming less about distant target-setting and more about structured capital allocation decisions today. Companies that proactively incorporate these elements into their climate roadmaps will be better positioned as accountability thresholds rise.
Conclusion - Raising the Accountability Threshold
SBTi’s Corporate Net-Zero Standard Version 2.0 represents more than a technical update. It marks a philosophical evolution in corporate climate accountability. By embedding Ongoing Emissions Responsibility (OER), formalizing recognition tiers, and establishing future removal obligations, the draft signals that climate leadership will increasingly be defined by measurable contribution, not just long-term ambition.
Net-zero is evolving from a target-setting exercise into a responsibility framework. The question for companies is no longer whether to act beyond their value chains, but how early and how strategically they choose to prepare.
This shift is expected to catalyze more ambitious and sustainable climate actions across the corporate world, driving progress toward global climate goals with increased precision and accountability. For tailored support on your company’s decarbonization journey, don’t hesitate to contact Mt. Stonegate. We offer comprehensive, one-stop solution services and hold a prominent position in the Asian market, guiding businesses toward a better, sustainable future.
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