Top insights from the 133 pages SBTi Net-Zero Standard V2 (Draft)
Climate Transition Plan
For SBTi-committed companies: What’s changing & why it matters
The new draft aims to raise ambition, improve transparency, and ensure credibility as more companies commit to net-zero. Here's what you need to know:
1. Clearer structure: Near-term, long-term & Net-Zero targets
- Near-term targets (5–10 years): Accelerate action in this decade.
- Long-term targets (by 2050 or earlier): Required for full decarbonization.
- Net-zero = long-term targets + residual emissions removed.
Guidance: Don’t just set targets — align short and long-term strategies across business functions. Ensure you're planning for residual removals (like carbon removals) now.
2. Stronger emphasis on progress monitoring
- Companies must now demonstrate progress toward targets, not just set them.
- Verification and accountability become core pillars.
Tip: Ensure your systems allow real-time tracking of emissions and initiative progress, not just annual reporting.
3. Tougher Scope 2 requirements
- Location- and time-matching for renewable energy is in focus (e.g., 24/7 clean power).
- Certificates like RECs will need to be more closely tied to actual energy use.
Action: Reevaluate your energy procurement strategy — simply buying offsets or RECs won’t cut it.
4. More flexible but focused Scope 3 approach
- Prioritise the most material Scope 3 categories.
- Green procurement and value chain engagement will be central.
Guidance: Collaborate deeply with suppliers (but don't just ask for the data-use the data to simulate and ideate initiatives together with both suppliers & customers. Missing supplier data? Now’s the time to fix that with access to accurate secondary data as startingpoint.
5. Mandatory Climate Transition Plans
- Required within 12 months of target approval.
- Should include interim milestones, governance, finance alignment, and stakeholder engagement.
Make it work: Link initiatives to business outcomes and show adaptability when customers, suppliers, or regulations shift.
6. Introduction of interim removals + BVCM
- Introduces interim targets for carbon removals and encourages Beyond Value Chain Mitigation.
- But these do not replace real reductions.
Takeaway: Invest in removals — but prioritise internal emissions cuts first. (our recommendation - be very clear what you do and how you do it - do everything you can to focus on internal initiative first)
Transition timeline
2025–2026 Near-term targets can follow current version (V1.2)
2027 onward. All new targets must follow V2
By 2030All existing targets must be updated to V2
What you should start doing now
- Audit your current targets and identify gaps with V2 requirements.
- Develop real-time data (use secondary verified and accurate data ie from Unibloom's database if you are missing data from suppliers and highlight the importance for your supplier engagement.
- Map out your climate transition plan across teams and regions.
- Build the business case: How do targets align with growth, costs, and national decarbonisation pathways (e.g., energy grid changes)?
- Ensure board and leadership can easily understand your roadmap — without needing 20 PowerPoint slides.
