Thommessen's comments
The SBTi is now undertaking a major revision of the maybe most known standard, the Corporate Net-Zero Standard. They published an initial draft of its revised Corporate Net-Zero Standard V2 for public consultation 18 March 2025. The 6 November 2025, the SBTi released a second draft of its revised Corporate Net-Zero Standard for public consultation, which will run till 12 December 2025. The draft includes specific technical updates in five key areas; (i) performance and transparency, (ii) diversified scope 1 target-setting methods, (iii) tightened integrity for low-carbon electricity (scope 2), (iv) focused and practical scope 3 framework, and (v) progressive responsibility for ongoing emissions
One of the key topics that has sparked heated debate with reference to the revision is the potential use of carbon credits as a way of tackling Scope 3 emissions, and SBTi is consulting on its approach for integrating carbon removals into the Standard. With the publication of the first draft standard, and now the second draft, the SBTi underlines its unchanged position – that fast and deep value chain decarbonization must be front and center.
In response to feedback from the first consultation and further research, the second draft Standard introduces the Ongoing Emissions Responsibility framework – a new recognition mechanism for supplementary mitigation, while companies are still reducing their own emissions. Under this framework, companies may contribute by delivering verified mitigation outcomes and/or by deploying climate finance. These actions are reported separately, and do not count toward achieving a company’s science-based targets. From 2035 onwards, the draft Standard requires all large and medium-sized companies in high-income countries to address part of their ongoing emissions with removals, ensuring that an increasing proportion of these removals deliver long-lived carbon storage.
In addition, in July 2025 the SBTi launched its first Financial Institutions Net-Zero Standard.
About
Science-based targets show companies and financial institutions how much and how quickly they need to reduce their greenhouse gas (GHG) emissions to prevent the worst effects of climate change.
The Science Based Targets initiative (SBTi):
- Defines and promotes best practice in emissions reductions and net-zero targets in line with climate science.
- Develops standards, tools and guidance to enable companies and financial institutions to set science-based targets in line with the latest climate science.
- Through its wholly-owned subsidiary, SBTi Services, assesses and validates companies’ and financial institutions’ targets.
The SBTi was formed as a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). In 2023 it was incorporated as a charity in the UK, with a legal Board of Trustees formed of climate leaders to oversee the organization’s governance. The SBTi also incorporated a subsidiary which provides target validation services in line with SBTi standards.
Who does it impact?
Companies and financial institutions that have set greenhouse gas emissions reductions targets through SBTi standards.
Status: Launched
The SBTi was launched in 2015.
Relation to other initiatives and regulations
The principles and goals of the SBTi are aligned with the overarching objectives of EU initiatives such as The European Green Deal and Fit for 55, EU Climate Law, CSRD and the EU Taxonomy.
Participants
Over 5,000 businesses across regions and industries have set emissions reduction targets grounded in climate science through the SBTi.
Thommessen's comments
The SBTi is now undertaking a major revision of the maybe most known standard, the Corporate Net-Zero Standard. They published an initial draft of its revised Corporate Net-Zero Standard V2 for public consultation 18 March 2025. The 6 November 2025, the SBTi released a second draft of its revised Corporate Net-Zero Standard for public consultation, which will run till 12 December 2025. The draft includes specific technical updates in five key areas; (i) performance and transparency, (ii) diversified scope 1 target-setting methods, (iii) tightened integrity for low-carbon electricity (scope 2), (iv) focused and practical scope 3 framework, and (v) progressive responsibility for ongoing emissions
One of the key topics that has sparked heated debate with reference to the revision is the potential use of carbon credits as a way of tackling Scope 3 emissions, and SBTi is consulting on its approach for integrating carbon removals into the Standard. With the publication of the first draft standard, and now the second draft, the SBTi underlines its unchanged position – that fast and deep value chain decarbonization must be front and center.
In response to feedback from the first consultation and further research, the second draft Standard introduces the Ongoing Emissions Responsibility framework – a new recognition mechanism for supplementary mitigation, while companies are still reducing their own emissions. Under this framework, companies may contribute by delivering verified mitigation outcomes and/or by deploying climate finance. These actions are reported separately, and do not count toward achieving a company’s science-based targets. From 2035 onwards, the draft Standard requires all large and medium-sized companies in high-income countries to address part of their ongoing emissions with removals, ensuring that an increasing proportion of these removals deliver long-lived carbon storage.
In addition, in July 2025 the SBTi launched its first Financial Institutions Net-Zero Standard.