The Science Based Targets initiative (SBTi) enables companies and financial institutions worldwide to make an effective, science-based and transparent contribution to combating the climate crisis. The SBTi introduced the Corporate Net Zero Standard in 2021, giving companies a consistent definition of science-based net zero targets. The SBTi published the first draft of a revised standard in March 2025, for which it has launched a consultation.
myclimate statement
As a non-profit climate protection foundation with over 20 years’ expertise, we support our business partners on their path to net zero. We take a holistic approach which includes avoiding and reducing emissions and financing climate protection projects beyond company value chains.
We know from day-to-day experience of supporting numerous companies with validated SBTi targets that reducing emissions in line with SBTi standards – especially in Scope 3 – presents major challenges for manufacturing companies. We are also concerned to note that global reduction efforts are still not fast enough or ambitious enough, and that in many places there is a lack of the financial resources and knowledge required for effective climate protection.
So we essentially welcome any discussion about how we can achieve climate protection more quickly and effectively in this context, and how we can remove hurdles for companies as well as for the Global South. We support the SBTi’s efforts to create additional motivation for companies that are leading the way in climate protection, by facilitating climate protection through beyond value chain mitigation in the form of credible, high-quality projects. This recognition also needs to be expressly communicated in the context of the current legislation, with relevant companies differentiated from their less committed competitors. We would be happy to have an active role in discussions about the specific arrangements.
At the same time, we see it as essential that the ambition of reductions in the supply chain isn’t watered down. A balanced approach that sees companies retaining responsibility for committed reduction measures while opening up a path to faster decarbonisation with the help of CO₂ certificates (under clear rules and, if necessary, for limited periods) – we believe this is an effective all-round strategy. This would facilitate immediate climate impact, usually where the effects of climate change are already most noticeable today, as well as the urgently needed transfer of finance and knowledge.
We appreciate the SBTi’s efforts to remove hurdles for more companies, especially smaller companies and those in regions of the world that are less economically robust.
Ultimately, it is in the interests of global climate protection to create more clarity around the specific configuration of net zero and to address the issue of residual emissions that cannot be reduced. We would like to see the SBTi providing more certainty by defining “removals”, while explicitly evaluating the numerous positive benefits of nature-based climate protection solutions against the – potential – longer-term capture of CO₂ through technical approaches.
Information on the SBTi Corporate Net Zero Standard V2.0 (1st draft)
The new version has some substantial changes compared to the current model, including a differentiation between larger, internationally oriented companies, and the smaller players (as well as companies in the Global South), who would be subject to fewer requirements. The new standard explicitly addresses the difficulty many companies face in decarbonising their supply chains (Scope 3). The overarching goal is to “remove barriers and enable more companies to set science-based climate targets.”
Previously there was “only” a recommendation to companies and financial institutions that they invest in beyond value chain mitigation (BVCM), whereas the new standard will explicitly encourage them to do so through a form of recognition or disclosure that is yet to be defined: “The SBTi is proposing to recognize companies that mitigate the impact of ongoing emissions while undertaking science-based decarbonization as an optional leadership practice.” (SBTi CORPORATE NET-ZERO STANDARD Version 2.0 – Initial Consultation Draft with Narrative March 2025, p.70). This formal recognition or distinction is intended to promote global climate finance on a large scale (“Formal recognition to unleash climate finance at scale”).
It serves the overarching objective that “Companies take responsibility for ongoing emissions, a key driver of continued negative climate impacts during the transition to net zero, through additional mitigation measures. In doing so, they contribute to broader societal net-zero transformation and strengthen their climate credibility” (page 71).
The form of this recognition remains undefined; this will be addressed in the consultation process and discussions in specialist groups. It is also crucial for the SBTi that BVCM measures are implemented in addition to ambitious, far-reaching decarbonisation initiatives within the company’s own value chain and not as a “shortcut” (through offsetting, for instance). If BVCM is implemented through financing of recognised climate protection projects with corresponding certificates, quality and credibility must be ensured, along with transparent communication.
The full draft: CNZS V2.0_Initial Consultation Draft with Narrative
Following the public consultation and discussions in various bodies, the standard is set to be officially published in 2026 and will come into force in 2027. The SBTi explicitly encourages companies to act earlier by setting targets and registering them now under the current V1.2 standard, not least because this creates valuable processes and results that can be applied to the new standard.
A team of experts from myclimate is taking part in the public consultation. With more than 20 years’ experience in setting up climate protection projects and reviewing their impact, myclimate is focusing in particular on the fourth major proposed change, which concerns the strengthening and recognition of measures in the area of “beyond value chain mitigation” (BVCM).
