Summary
Details
- Global
The SBTi Corporate Net-Zero Standard is designed for companies seeking to set and submit science-based net-zero targets for validation.
- Large companies use the full Corporate Net-Zero Standard to develop and validate comprehensive targets
- SMEs can follow either the same standard or a streamlined SME route with simplified requirements
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Introduction
The SBTi Corporate Net-Zero Standard is a global framework that provides companies with guidance and criteria to set science-based net zero greenhouse gas (GHG) emissions targets aligned with climate science and the Paris Agreement. Developed by the Science Based Targets initiative (SBTi), it was first launched in 2021 as the first comprehensive standard for corporate net-zero target setting.
The standard defines net-zero as achieving deep emissions reductions across a company’s value chain, followed by neutralizing any residual emissions. It aims to ensure that corporate climate commitments are credible, consistent, and aligned with limiting global warming to 1.5°C. It applies to companies across sectors seeking to set validated climate targets, with separate frameworks available for financial institutions and SMEs.
Applying the SBTi Corporate Net-Zero Standard
Companies follow a structured process to set and validate net-zero targets under the SBTi framework:
Set near-term science-based targets - Companies must commit to rapid emissions reductions over the next 5–10 years, typically aligned with halving emissions by 2030.
Establish long-term net-zero targets - Organizations are required to reduce emissions by at least 90% across Scope 1, 2, and 3 by 2050 at the latest.
Address value chain emissions - Targets must cover all material emission sources, including indirect (Scope 3) emissions across the value chain.
Neutralize residual emissions - After deep decarbonization, remaining emissions must be neutralized using permanent carbon removal and storage solutions.
Submit targets for validation - Companies submit their targets to the SBTi, which independently assesses whether they meet the required criteria and are aligned with climate science.
The standard emphasizes that emissions reductions must take priority, with offsetting or removals used only for residual emissions that cannot be eliminated.
Current Status & Outlook
The SBTi Corporate Net-Zero Standard is widely used globally and is considered a leading framework for corporate climate target-setting. More than 11,000 companies and financial institutions have set or committed to science-based targets through the SBTi. As of April 2026, the standard is undergoing a major revision (Version 2), with updates expected to refine requirements on Scope 2 energy procurement, Scope 3 coverage, and the role of carbon removals. The revised version is intended to improve clarity, strengthen accountability, and reflect evolving climate science and market practices, while maintaining a strong focus on deep emissions reductions.
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