SBTi Releases Second Draft of Corporate Net-Zero Standard V2 for Consultation

The Science Based Targets initiative (SBTi) has released a second draft of its revised Corporate Net-Zero Standard (CNZS Version 2.0) for public consultation, with feedback requested by December 12, 2025. The update introduces refinements to commitment processes, target-setting criteria, and validation models with implications for how LCA data supports corporate climate action.

Key Points

• Enhanced commitment documentation replacing the previous letter format

• More robust base year performance framework amplifying data quality requirements

• New validation model expanding focus to include target implementation

• Mandatory five-year review guidance now in effect with status changes from December 18, 2025

• Over 7,000 companies worldwide have now set targets through SBTi

LCA Connections

The SBTi framework relies on Life Cycle Assessment methodologies and data, particularly for Scope 3 emissions which often constitute the majority of a company's carbon footprint. The CNZS V2 updates have direct implications for LCA practice:

• Scope 3 Requirements: If a company's relevant Scope 3 emissions are 40% or more of total Scope 1, 2, and 3 emissions, they must be included in near-term science-based targets. For fossil fuel companies, separate targets for use of sold products are required regardless of percentage share
• Data Quality Emphasis: The updated framework introduces a more detailed base year performance assessment framework, amplifying data quality and remediation requirements. GHG accounting that doesn't adhere to the GHG Protocol standard and SBTi criteria will not be accepted

Framework Enhancements

The CNZS V2 introduces several major changes:

• Commitment Process: Enhanced commitment documentation replaces the previous letter format, providing clearer requirements for companies beginning their SBTi journey
• Target Setting: A refined benchmarking approach ensures targets cover residual emissions clearly, improving the consistency and comparability of validated targets
• Progress Assessment: A novel validation model expands focus to include target implementation, enhancing accountability throughout the commitment period. Companies must assess and communicate progress at the end of their target period and set new targets accounting for previous performance
• Mandatory Reviews: The five-year mandatory review process, now detailed in specific guidance, requires companies to evaluate their targets against current criteria and submit updates if deviations are identified

Target Validation Requirements

For near-term targets submitted in 2025, key requirements include:

• Targets must cover a minimum of 5 years and maximum of 10 years from submission date

• Valid target years for first-half 2025 submissions are 2029-2034 inclusive

• Base year can be no earlier than 2015

• Scope 1 and 2 targets must align with at least a 1.5°C trajectory

• Most recent inventory data must be from 2023 or 2024

Companies may exclude up to 5% of scope 1 and 2 emissions combined, and a maximum of 5% of scope 3 emissions, from their inventory boundary. However, at least 67% of total reported and excluded mandatory Scope 3 emissions must be covered by targets.

Carbon Credits Clarification

The standard maintains that carbon credits cannot count toward progress on science-based targets. They may only be considered for neutralizing residual emissions or financing additional climate mitigation beyond emission reduction targets.

Growing Corporate Adoption

SBTi reports that over 10,000 companies have now committed to or set science-based targets, with 7,502 having validated targets and 1,666 having established net-zero commitments. A recent survey found that 9 in 10 companies report that science-based targets deliver positive business impact across performance measures.

Sector-Specific Developments

The SBTi continues developing sector-specific guidance:

• Power Sector Standard: Public consultation open through November 2025

• Timber and Wood Fiber Pathway: Pilot testing applications now open

• FLAG Guidance: Companies with substantial land-related emissions must set separate Forest, Land and Agriculture targets

For LCA Practitioners

Practitioners supporting corporate climate programs should ensure GHG inventory methodologies strictly follow GHG Protocol standards and build robust Scope 3 accounting capabilities across all 15 categories. Expect increased scrutiny of data quality and documentation under the new framework. The consultation period for CNZS V2 closes December 12, 2025. The draft standard is available for review and feedback through the SBTi portal.