Setting credible net zero targets: Revisions to the SBTi standards

It is no longer enough for companies to make broad pledges about achieving net-zero; they should also provide credible, science-based targetssupported by detailed, verifiable transition plans. 

Institutional investors, investor engagement networks and climate advocacy groups are pressuring companies to ensure their net-zero targets are grounded in science and accompanied by clear strategies for how they will achieve them. Regulators are also raising the bar to combat greenwashing, increasingly scrutinizing sustainability-related claims, including those related to net-zero targets. In Canada, Bill C-59, which amended the Competition Act, mandates that claims about the environmental benefits of businesses or their activities must be adequately and properly substantiated in line with internationally recognized methodology.

A well-recognized framework for setting science-based targets are standards from the Science Based Targets initiative (SBTi), which has over 3,000 businesses worldwide that have set or committed to set targets based on their standards.  As companies scale their net-zero commitments,SBTi continues to evolve to better support implementation, enhance credibility, and address challenges in advancing on targets.  On 18 March 2025, SBTi launched a consultation on the draft of its revised standard, Corporate Net Zero Standard (CNZS) Version 2.0, which aligns with the latest science and best practices. CNZS V2.0 places a stronger focus on assessing and reporting measurable progress towards net-zero targets, ensuring companies can demonstrate tangible results.

Summary of key changes from CNZS V2.0

Below is a summary of key changes to signal where the standard is heading — and what companies should begin preparing for:

Source: SBTi (2025) Corporate Net Zero Standard Version 2.0 - Initial Consultation Draft with Narrative

What does CNZS V2.0 mean for companies setting net-zero targets?

The consultation for CNZS V2.0 should end by 1 June 2025 and companies are encouraged to share their feedback on the proposed changes. SBTi plans to use the final CNZS V2.0 from 2027 to validate both near and long-term targets. Companies are advised to familiarize themselves with the proposed changes and begin preparing now.

Companies with near-term targets already validated by the SBTi:

• No revisions required to existing near-term targets as these remain valid until 2030 or end of the target timeframe, whichever comes first.
• Start preparing for validation renewal and setting new interim targets beyond 2030. Review the draft requirements in V2.0 to identify key steps for a smooth transition.
• SBTi expects to release further guidance in 2025 to help companies align with the revised CNZS standard.

Companies preparing to set targets or undergoing SBTi validation of targets:

• Proceed with validation based on the current SBTi standards (CNZS V1.2 and Near-Term Criteria Version 5.2) to maintain momentum.
• Start evaluating the impact of V2.0 in areas such as Scope 3 boundary setting, target structure, and transition plan disclosure. Be mindful that near term targets post 2030 will need to align with the revised standard.

Key considerations in turning net-zero ambition into actionable plans

In CNZS V2.0, SBTi updated its target validation model to include a process for monitoring, assessing and communicating progress towards net-zero targets. This new approach includes spot checks during the target development and implement phases. In addition, CNZS V2 requires companies to develop, and publicly disclose, within 12 months of initial validation of the targets, a climate transition plan which sets out actions to achieve net-zero by 2050 at the latest.

As companies develop their climate transition plans, it is important to ensure actions are practical, proportionate and financially sound. Companies should consider asking themselves the following questions to help ensure they are on the right path:

1. Do we understand the emissions gap between our net-zero targets and where our emissions are currently headed, factoring in expected business growth and impact of existing decarbonization efforts?
2. What are the short-, medium- and long-term actions needed to address the emissions gap and how would these change our products, services and overall business model?
3. What are the potential impacts (financial and non-financial), trade-offs and dependencies of implementing these actions?
4. What governance structures, metrics and reporting processes should we establish to track progress and ensure accountability?
5. How will we engage with key stakeholders – like employees, suppliers and customers – to ensure alignment and collaboration in implementing these actions?

Companies need to strike a balance between the growing demand for transparency and more ambitious action while managing the rising litigation, compliance and reputational risks with heightened scrutiny on net-zero claims. Success is not just about setting science-based targets. It is also about delivering on these targets, tracking progress openly and building credible substantiated narrative that fosters trust and positions for long-term success.

How we can help

Our experienced professionals support you at every stage of your net zero journey – from establishing credible baseline emissions to developing impactful decarbonization strategies to developing robust climate transition plans.

We don’t just help you set targets — we help you translate ambition into measurable business value. 

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