--- title: SBTi unveils proposals to update corporate net-zero standard  description: The Science Based Targets initiative (SBTi) has released a draft revision of its Corporate Net-Zero Standard, aiming to increase real-world decarbonisation and improve alignment with global frameworks --- [Skip to content](https://knowledge.curationcorp.com/knowledge/sbti-unveils-proposals-to-update-corporate-net-zero-standard#main-content) English Show submenu for translations ![Curation Logo Transparent (1)-1-1.png\]](https://knowledge.curationcorp.com/hs-fs/hubfs/Curation%20Logo%20Transparent%20(1)-1-1.png?height=41&name=Curation%20Logo%20Transparent%20(1)-1-1.png) Open main navigation Close main navigation - English Show submenu for translations - Go to curationcorp.com Go to curationcorp.com Welcome to the Ocean 14 Knowledge Base - There are no suggestions because the search field is empty. 1. [Ocean 14 Knowledge Base](https://knowledge.curationcorp.com/knowledge?hsLang=en) 2. [Rio Weekly - Innov8](https://knowledge.curationcorp.com/knowledge/rio-weekly-innov8?hsLang=en) # SBTi unveils proposals to update corporate net-zero standard The Science Based Targets initiative (SBTi) has released a draft revision of its Corporate Net-Zero Standard, aiming to increase real-world decarbonisation and improve alignment with global frameworks. The draft introduces flexibility for Scope 3 targets, removing the strict 90% reduction by 2050 requirement, and proposes a tiered system based on company size and geography. The update also requires separate Scope 1 and 2 targets, mandates zero-carbon electricity by 2040, and expands the role of carbon removals for residual emissions. The SBTi has also proposed a recommendation or requirement for companies aligning with the Standard to disclose their transition plans. A public consultation runs until 1 June. ([edie](https://www.edie.net/sbti-unveils-proposals-to-update-corporate-net-zero-standard/%22%20/t%20%22_blank))  **Why does this matter?** The SBTi [launched](https://www.reccessary.com/en/news/world-regulation/sbti-corporate-net-zero-standard-key-changes) the first version of the Standard in 2021 to help guide companies to set science-based targets aligned to limit global warming to 1.5C. Over 1,500 companies have since had their targets independently [validated](https://www.edie.net/sbti-unveils-proposals-to-update-corporate-net-zero-standard/). However, adoption [challenges](https://www.edie.net/sbti-unveils-proposals-to-update-corporate-net-zero-standard/) prompted a revision, which had been due last July but was delayed after a [proposal](https://www.reccessary.com/en/news/world-regulation/sbti-corporate-net-zero-standard-key-changes) to allow carbon credits to offset Scope 3 emissions sparked controversy, leading CEO Luiz Amaral to resign citing personal reasons.   The SBTI subsequently [backtracked](https://www.esgtoday.com/sbti-appears-to-backtrack-on-use-of-carbon-credits-in-corporate-net-zero-targets/) on the use of carbon credits and, as with Version 1.2, the draft [Standard](https://sciencebasedtargets.org/resources/files/Net-Zero-Standard-v2-Consultation-Draft.pdf) does not permit purchasing those that fall outside their value chains to meet their emission reduction targets. While permanent carbon removals can complement – though not replace – reductions, the draft strengthens support for [beyond value chain mitigation](https://sciencebasedtargets.org/beyond-value-chain-mitigation) (BVCM), formally recognising companies that invest in high-quality credits, which promotes additional decarbonisation efforts and mobilisation of climate finance. Such actions will not count toward target progress.  As Scope 3 emissions are complex to manage, the [draft](https://sciencebasedtargets.org/resources/files/Net-Zero-Standard-v2-Consultation-Draft.pdf) shifts away from percentage-based targets, instead requiring companies to focus on high-impact, high-influence areas such as tier 1 suppliers. It encourages alignment-based metrics, including procurement from net-zero suppliers and revenue from net-zero products and services. To address data and traceability gaps, it permits activity-level interventions and the use of indirect tools like book-and-claim certificates.    Rio Tinto was among the mining majors that [responded](https://www.riotinto.com/en/news/trending-topics/sbti-scope-3-discussion-paper) to the SBTi’s Scope 3 target-setting discussion paper, which was a step towards revising the [Standard](https://sciencebasedtargets.org/resources/files/Net-Zero-Standard-v2-Consultation-Draft.pdf). It called for recognising investments that reduce emissions across operations or the value chain. The company added that decarbonisation in hard-to-abate sectors will be non-linear, with faster reductions likely as policies evolve and technologies mature. It also noted that efforts to reduce Scope 3 emissions through vertical integration may temporarily raise Scope 1 and 2 emissions, highlighting the need for more nuanced benchmarking.   The SBTi also [proposed](https://sciencebasedtargets.org/resources/files/Net-Zero-Standard-v2-Consultation-Draft.pdf) separate targets for Scope 1 (direct) and 2 (energy-related) emissions, replacing the combined approach. Companies missing near-term Scope 1 goals should strengthen future targets to conserve the carbon budget. Securing 100% zero-carbon electricity by 2040 will become mandatory, with full energy needs encouraged to be met by zero-carbon sources by 2050. The [draft](https://sciencebasedtargets.org/resources/files/Net-Zero-Standard-v2-Consultation-Draft.pdf) also discourages unbundled certificates, favouring credible options such as power purchase agreements or on-site generation.  Version 1.0 of the SBTi Standard required companies to neutralise residual emissions at the net-zero year and beyond. The [revision](https://sciencebasedtargets.org/resources/files/Net-Zero-Standard-v2-Consultation-Draft.pdf) builds on this by encouraging earlier responsibility for residual emissions during the transition. It presents three options – mandatory removal targets with interim milestones, optional recognition for such targets, or flexible approaches allowing companies to use reductions, removals, or both.  Additionally, the [draft](https://sciencebasedtargets.org/resources/files/Net-Zero-Standard-v2-Consultation-Draft.pdf) introduces tiered emission reduction requirements based on company size and the income level of the country where they operate. Category A includes medium and large companies in high-income countries and is subject to more stringent reduction and disclosure requirements. For instance, large companies must obtain target verification within one year, rather than two. Category B covers small and medium-sized companies in low- and middle-income countries, offering greater flexibility, including a two-year window for target verification.                - [Rio Weekly - Innov8](https://knowledge.curationcorp.com/knowledge/rio-weekly-innov8?hsLang=en) - [Accelerate](https://knowledge.curationcorp.com/knowledge/accelerate?hsLang=en) - [Aquaculture](https://knowledge.curationcorp.com/knowledge/aquaculture?hsLang=en) - [Ocean Sustainability](https://knowledge.curationcorp.com/knowledge/ocean-sustainability?hsLang=en) - [Carbon Capture & Sensors](https://knowledge.curationcorp.com/knowledge/carbon-capture-sensors?hsLang=en) - [Emerging Preservation Technology](https://knowledge.curationcorp.com/knowledge/emerging-preservation-technology?hsLang=en) [![Curation.png](https://knowledge.curationcorp.com/hs-fs/hubfs/black%20curation%20logo.png?width=1584&height=396&name=black%20curation%20logo.png "Curation.png")](http://curationcorp.com) Ocean 14 Knowledge Base Copyright © 2026, Curation Corporation Limited