If you plan to submit targets to the SBTi in the next two years, the rules depend on the date. The SBTi published version 2.0 of its Corporate Net-Zero Standard in June 2026. From 1 February 2028, every new submission must follow it. Targets that the SBTi has already validated stay valid.
- SBTi Net-Zero Standard V2.0: new rules for new submissions, in full force from 1 February 2028.
- Categories A and B: they replace the SME and corporate routes, with more precise criteria.
- Five-year cycle: each near-term target covers five years and starts from the latest full year of data.
- Scope 1 and Scope 2: separate targets, each covering 100% of the relevant emissions.
- Scope 3: no 40% test; category A covers every category above 5% of Scope 3 emissions.
- Plan and verified data: needed at validation, not only after the target is approved.
Why is the SBTi changing the standard?
The old rules focused on getting a target set and validated. In practice, that is only the start. Most of the work begins after approval: with data, investments, talks with suppliers and yearly tracking of progress.
The SBTi saw this problem, and much of version 2.0 is built around it. The standard looks less at the moment of approval. It looks more at what your company does over the next five years and how it proves it.
When do the rules change?
Version 2.0 is already published, but it does not apply overnight. The move to it has three key dates:
In 2026, the SBTi still validates new targets under version 1.3.1. From 1 February 2027, validation under version 2.0 opens, and both standards run side by side for a year. In that year, you have a real choice. From 1 February 2028, there is no choice.
Targets validated earlier stay valid until the end of their period, subject to a review every five years. Version 2.0 does not cancel anything that the SBTi has already approved.
Six changes you will feel before your target is approved
1. Categories A and B instead of the SME and corporate routes
The simple split into a route for small and medium companies and a corporate route goes away. Version 2.0 has categories A and B. They still separate smaller and larger companies, but the criteria are more precise. They include turnover, number of employees, the level of emissions and the country where the parent company is registered.
2. The near-term target becomes a fixed five-year cycle
Until now, you set a near-term target for five to ten years ahead. In version 2.0, the cycle is fixed at five years. When it ends, you set the next target, and so on. The SBTi stresses that this should continue the cuts, not reset the history.
3. A new base year at the start of each cycle
Until now, the base year could be a past year and stay with your company for years. In version 2.0, each cycle starts from the latest year for which you have complete data. This forces order in your carbon footprint inventory. It also means that the target starts from a real and current point.
4. Separate targets for Scope 1 and Scope 2
Until now, you could cover both scopes with one shared target. In version 2.0, they are separate. Each gets its own target, and each must cover 100% of its emissions. An easy cut in one scope can no longer hide a lack of progress in the other.
5. Scope 3 by relevance, not by a threshold
This is the biggest change in approach. Until now, the question was: is Scope 3 at least 40% of the total footprint? If so, you needed a target and had to cover 67% of these emissions.
In version 2.0, a Scope 3 target is mandatory for category A, whatever its share. The 40% test and the fixed 67% go away. Instead, you must cover all relevant categories, that is, each category that makes up at least 5% of Scope 3 emissions, with some exceptions. For food and farming companies, FLAG emissions remain a separate topic.
6. A decarbonisation plan and verified data at validation
A decarbonisation plan is no longer something you prepare after approval. It must exist at the validation stage. The SBTi checks that the plan exists and has the required parts. It does not judge whether the plan makes business sense. We describe how to build such a plan in the article How to reduce your business carbon footprint in seven steps.
Also, category A companies need an independent verification of the base year inventory and of the required indicators. This is a new cost and a new step in the schedule.
How to read the criteria, examples from real submissions and a checklist for validation, based on the submissions we worked on.
Download free →New ways to set targets
Version 2.0 gives you more tools to match the target to what you can really influence. Next to the existing methods, there are three new ones, one in each scope.
Scope 1: change of specific assets
You can still use an absolute cut. You can also use an intensity target, that is, fewer emissions per unit of activity, if your sector has a pathway. The new option is an approach based on changing specific assets.
It is mainly for companies with plants, machines or fleets that have a long life and high emissions. The target can then cover a plan to upgrade them, phase them out or replace them with lower-emission options.
Scope 2: share of low-carbon electricity
Next to an emissions cut, there is a new target for a growing share of electricity that meets low-carbon criteria. So you can measure not only tonnes of CO₂e. You can also measure what part of the electricity you use comes from low-carbon sources.
Scope 3: alignment of the value chain
This is where most new options appear. Besides a classic emissions target, you can show what part of your value chain is already changing. You can measure, among other things:
- what share of your suppliers have their own targets and actions in line with a path to net zero;
- what part of the materials or products you buy comes from low-carbon solutions;
- what part of the products you sell meets set requirements for use or for end of life.
What changes after the target is approved?
The most practical change is not about the day you submit. It is about the five years after it.
- Every year: a progress report. The standard asks you to show your emissions and also to describe your actions and the barriers you met.
- At the end of the cycle: a progress review. You prepare a summary of how far you have come against the approved target. For category A, an independent verifier must check this review.
- Formal close of the cycle. The review goes to the SBTi, which makes its own assessment of the five-year period. Then you set the next target, based on the latest data.
Keep two roles apart, because people often mix them up. An independent verifier is responsible for reliable data and calculations. It checks the base year inventory and, for category A, the final progress review. The SBTi checks that the target meets its own criteria. It does this at validation at the start of the cycle and at the review at its end. These are two different jobs, done by two different bodies.
For companies on the corporate route, this means more work on documents and a higher cost. Independent verification is a paid service that the old process did not include.
V1.3.1 and V2.0 compared
The table shows the six changes described above in one place. The Scope 3 row applies to category A. The other changes apply to both categories.
| Area | V1.3.1 | V2.0 |
|---|---|---|
| Company categories | SME or corporate | category A or B |
| Near-term target | 5 to 10 years | fixed five-year cycle |
| Base year | can be a past year | latest year with complete data |
| Scope 1 and Scope 2 | one shared target | separate targets, 100% of emissions |
| Scope 3 | 40% test and 67% coverage | categories above 5% of emissions |
| Plan and data | not required in this form | plan and verification at validation |
Should you submit under V1.3.1 or V2.0 in 2027?
For the whole of 2027, both standards run side by side, and the choice is yours. Make it with care, because the difference does not end on the day of validation. We describe the full process, from the carbon footprint to validation, in our guide Science based targets – how to set SBTi targets?
A review every five years applies to both routes
Whatever version you choose, you must review your active targets every five years against the current SBTi criteria. If a target still meets them, you do not need to change it. If it does not, you must update it and have it validated again.
This is the core of the decision. A target submitted in 2027 under V1.3.1 will come up for review when V2.0 is already the standard. It will be assessed against the V2.0 criteria.
V1.3.1 costs less to maintain
The current route does not require an independent verification of your carbon footprint calculation. SBTi validation checks that the target meets the criteria, not that the calculation is correct. In V2.0, third-party verification becomes mandatory for category A, for the base year inventory and for the final progress review.
This is a real difference in budget: independent verification is a paid service that the old process did not include.
Our recommendation
Submit under V1.3.1, but with a target calculated to meet V2.0. The process is cheaper and faster today. At the review in five years, the target will pass without a new calculation or a new validation.
Prepare in advance:
- separate targets for Scope 1 and Scope 2, covering all emissions;
- Scope 3 split into relevant categories, instead of watching a percentage threshold;
- a decarbonisation plan ready before validation, not after it.
We help companies build and carry out such a plan as part of our decarbonisation strategy service.
Do you need support with your SBTi submission?
We worked on 23% of the SBTi targets approved for companies from Poland by the end of 2024. We were among the first to guide companies through this path. We cover the emissions inventory, the choice of route, target setting, validation and yearly progress reports.
See how we work on SBTi target submission and validation.