SBTi V2: From Setting Targets to Delivering Change
31st July 2026
The Science Based Targets initiative (SBTi) has launched Version 2 of its Corporate Net-Zero Standard, bringing the biggest update to its framework in years. But don’t worry, this isn’t about making net zero harder. It’s about making it more practical.
With over 11,000 companies now setting science-based targets, SBTi V2 reflects a decade of learning and a clear shift in focus: moving from ambition to action.
What's New?
More Focus on Accountability and Progress
A major shift in the new standard is the move from simply setting targets to demonstrating how they are being delivered. The standard introduces stronger expectations around governance, planning, reporting and transparency to help ensure climate commitments translate into real-world action.
Governance and Leadership
Organisations will be expected to show that climate targets are embedded within decision-making processes, rather than sitting solely within sustainability teams.
This includes:
- Clear governance structures to oversee target delivery.
- Board-level or senior leadership accountability for climate commitments.
- Defined responsibilities for monitoring progress and driving implementation.
- Processes for regularly reviewing performance and addressing risks or barriers.
Transition Planning
For the first time, transition planning becomes a core element of the standard.
Organisations will need to demonstrate:
- How they plan to deliver their targets.
- The resources and investments being allocated to support implementation.
- Key assumptions and dependencies that underpin delivery.
- Potential barriers that could impact progress and how these will be managed.
This is intended to create a stronger link between climate targets and wider business strategy.
Progress Reporting
Transparency is a key theme throughout V2 of the standard. Organisations will be required to report annually on their progress and implementation journey.
This includes:
- Progress against targets.
- Actions being taken to reduce emissions.
- Barriers and challenges affecting implementation.
- Updates on factors outside a company’s direct control, such as technology availability or infrastructure constraints.
The intention is to provide a clearer picture of whether organisations are genuinely advancing towards their targets.
End-of-Cycle Assessment
At the end of each five-year target cycle, organisations will undertake a formal assessment of their performance.
This process includes:
- Evaluating progress made against approved targets.
- Demonstrating how implementation has been managed throughout the cycle.
- Independent third-party assurance for larger companies (Category A).
- Submission of results to SBTi for review and recognition.
Greater Transparency
Organisations will also be expected to make progress information publicly available, helping investors, customers and other stakeholders better understand climate performance and implementation efforts.
Separate Targets for Scopes 1, 2 and 3
Companies will now set individual targets for each emissions scope, helping ensure that all areas of the business are addressed rather than focusing only on the easiest reductions.
The challenge: Scope 3 remains complex, requiring greater supplier and customer engagement, to reduce (in most cases) the majority of an organisation’s emissions footprint.
More Flexible Target Setting
SBTi V2 introduces new ways for companies to set targets, recognising that different sectors decarbonise in different ways. Alongside traditional emissions reduction targets, organisations can now use approaches such as Asset Transition Targets and expanded Scope 3 alignment methods.
What this means: More flexibility and a better fit for real-world business challenges.
A New Implementation Hierarchy
One of the biggest changes is a clearer framework for how companies should deliver reductions:
- Reduce emissions directly where possible.
- Help decarbonise the wider systems you operate within (such as electricity grids and supply chains).
- Support broader sector transformation where barriers remain.
This provides businesses with more pathways to drive meaningful progress while keeping real emissions reductions at the heart of the standard.
Recognising Real-World Challenges
Perhaps the most refreshing update is the introduction of a “best efforts” approach.
SBTi acknowledges that some barriers, such as infrastructure, technology availability or policy constraints, are outside a company’s control. Organisations are expected to demonstrate action and transparency, but they won’t be penalised simply because the wider system hasn’t moved fast enough.
Timelines
The transition to SBTi V2 has been designed to give companies plenty of time to prepare. The standard was launched in June 2026 and will become operational from 1 February 2027, when organisations can begin submitting targets under the new framework. Throughout 2027, companies can continue to use existing SBTi standards, with V2 becoming mandatory for all new target submissions from 1 February 2028. Importantly, companies with existing validated targets do not need to update them immediately and should instead focus on implementation, transitioning to V2 when preparing targets for their next target cycle.
Looking Ahead
Overall, SBTi V2 is a positive evolution. It provides more flexibility, better reflects the realities of decarbonisation and places greater emphasis on action over aspiration.
Yes, some aspects, particularly Scope 3, reporting and governance requirements, will require more effort. But the direction is clear: helping companies move beyond setting ambitious targets and towards delivering tangible climate outcomes.
Ready for SBTi V2?
With SBTi V2 signalling a clear shift from ambition to implementation, now is the ideal time to assess how your organisation’s targets, governance structures, reporting processes and transition plans align with the new requirements. The recommendation from SBTi is clear, do not wait until just before you need to submit, otherwise you are open to significant risk.
Whether you’re preparing for your next target cycle, navigating Scope 3 challenges, or looking to strengthen the credibility of your net zero strategy, Arthian’s team of SBTi specialists can help you understand the implications of V2 and build a practical roadmap for success.