By: Nicole Gotthardt, Meghan E. Gavin, and Anastasia O’Rourke

The Science Based Targets Initiative (SBTi), a United Kingdom charity, is a climate action organization that enables companies and financial institutions worldwide to set targets for reducing their greenhouse gas (GHG) emissions in line with the Paris Agreement’s aim of limiting global temperature rise to 1.5℃. Through their Corporate Net Zero Standard (CNZS), SBTi provides clear guidance, criteria, and recommendations for its member-companies to reduce their emissions across their entire value chain, consistent with climate science, to achieve net-zero emissions by 2050. 

SBTi has now validated net-zero targets set by over 7,810 companies. But until recently, SBTi has not required member-companies to publicly report their progress towards these targets. The “rubber meets the road” with SBTi’s recently released Draft Corporate Net Zero Standard, Version 2.0 (CNZS V2.0), which is now undergoing public consultation. 

This updated standard is important in the evolution of corporate climate standards and accounting practices. Given its implications for the successful development of climate solutions and our collective ability to address climate change before we reach ecological or geophysical tipping points, the Carbon Containment Lab (CC Lab) conducted a review of the updated standard. 

We’re pleased to share our findings with you and encourage you to submit comments to SBTi by June 1, 2025.

CNZS V2.0 builds upon the current Version 1.2 to provide more guidance for member-companies in setting targets and assessing their progress in meeting net-zero emissions by 2050. CNZS V2.0 includes many improvements from V1.2, including, but not limited to, the following: 

• Increased accountability and recognition of progress towards targets; 

• Tailored requirements for companies based on size and country of origin; 

• Altered scope 3 target-setting framework to prioritize action on the most relevant sources of emissions in a company’s value chain; 

• Increased guidance and flexibility for companies to address and show progress on indirect emissions (scope 2 and 3); 

• Proposed requirement of interim removal targets for direct (scope 1) residual emissions, and quality and minimum durability requirements for allowed removals; and 

• Giving companies additional recognition for addressing ongoing emissions through "beyond value chain mitigation" (BVCM), voluntary climate action outside a company’s value chain. 

For the full list of proposed changes, read SBTi’s CNZS V2.0 Executive Summary.^[1]

We commend SBTi for the meaningful progress made in CNZS V2.0. Its updates reflect a continued commitment to scientific rigor, transparency, and accountability in the progress towards climate targets. Through allowing removals and expanding recognition for member-companies that engage in climate action beyond their value chain, SBTi is taking important steps in helping companies play a more proactive role in the global transition to net-zero. However, we believe there are still areas for improvement in CNZS V2.0. 

Here, we summarize the CC Lab’s review, introducing our main arguments addressed more thoroughly in blog posts accessible through the links below. Along with our comments published here, we also provided feedback directly to SBTi via the detailed questionnaire released for stakeholder input.

To boost the likelihood that more corporate actors will join this initiative, SBTi should increase V2.0’s adoptability and approachability by permitting flexibility in how companies can achieve their climate goals.

The CC Lab advocates for greater flexibility in how companies can achieve their climate goals to increase widespread adoption of the CNZS V2.0, which would ultimately drive more climate action. Meeting Paris Agreement goals requires greater adoption of climate targets in the private sector, and SBTi is uniquely positioned to facilitate increased voluntary climate action. However, if CNZS V2.0 remains overly prescriptive or misaligned with current practices in compliance or voluntary carbon markets, it risks discouraging companies from pursuing meaningful climate action. You can read our detailed review here. 

We strongly support facilitating increased corporate investment in carbon projects that are key to meeting global climate goals. To achieve this, the CC Lab recommends that SBTi allows member-companies to use diverse types of high-quality carbon credits—including carbon dioxide removals (CDR) and super pollutant avoidance or reduction credits—to address their ongoing emissions as well as direct (scope 1) and indirect (scope 2 and 3) residual emissions. Strengthening the demand signal for projects via verified carbon credits is essential to attracting near-term investment and scaling the supply of high-quality, durable carbon credits in line with net-zero timelines. You can read our detailed review here.