The SBTi’s Revised Net-Zero Standard:
What Businesses Need to Know

The Science Based Targets initiative (SBTi) is one of the most trusted frameworks for setting credible corporate climate targets. As regulations tighten and investor scrutiny increases, aligning with the SBTi has become essential for businesses that want to show leadership on sustainability and future-proof their operations.

Now, the SBTi has released a draft revision of its Corporate Net-Zero Standard, open for public consultation. This is the first major update since the standard launched in 2021 – and it reflects the rapidly evolving landscape of climate regulation, stakeholder expectations, and science-based accountability.

So what’s changing – and what does your business need to do about it?

Key Changes in the SBTi’s Revised Net-Zero Standard

The proposed updates are designed to strengthen corporate commitments, while introducing more practical pathways for different types of businesses. Here are the most important updates to watch:

1. Categorisation of Businesses by Size and Region
Under the new framework, companies may be classified by size and operating region, helping to ensure that larger corporations and those based in wealthier countries carry a proportionately greater share of the climate mitigation burden.

This differentiation aims to ensure fairness, while maintaining ambition for those with the greatest impact.

2. Stricter Requirements for Scope 1 and Scope 2 Emissions
The revised standard proposes mandatory separate targets for:

Scope 1: Direct emissions from owned or controlled sources
Scope 2: Indirect emissions from purchased electricity, heat, and steam

Organisations will be expected to tighten these targets over time if they fall short of progress. The push for 100% renewable energy is reinforced, with added emphasis on power purchase agreements (PPAs) and self-generation to meet clean energy goals.

3. More Flexibility for Scope 3 Emissions
Scope 3 – emissions from across the value chain – remains one of the most complex areas for businesses to measure and reduce.

The new draft introduces more flexibility in long-term Scope 3 targets, potentially including:

Focus on the most carbon-intensive activities
Optional targets for small or medium-sized enterprises (SMEs)
Earlier adoption of carbon removals to neutralise residual emissions (without replacing reduction efforts)

This shift is particularly important for service-based or decentralised organisations, where Scope 3 typically dominates the emissions profile.

What the Revised SBTi Standard Means for Businesses

These updates are designed to drive greater impact while allowing for the diverse realities businesses face. For many, the proposed changes are a welcome step towards balancing ambition with achievability.

Larger Companies
You may face tighter scrutiny and will be expected to show credible action on direct emissions. The revised SBTi standard ensures that climate commitments are not diluted by offsets or delays.

Smaller Businesses
The new framework introduces more realistic pathways for SMEs, including flexibility on Scope 3 and simplified reporting structures. This could lower the barrier to entry for businesses looking to formalise their net zero plans.

All Organisations
You’ll need to reassess your targets, revisit your emissions boundaries, and ensure your reporting and reduction strategies are aligned with the new criteria. The revised standard provides an opportunity to refine your strategy and accelerate your path to net zero.

What Happens Next?
The draft standard is currently under consultation, with a second review phase, working group discussions, and a pilot phase scheduled before finalisation.

This is a critical window for businesses to:

Engage with the consultation process
Understand how proposed changes affect their current targets
Plan ahead to remain compliant and credible

Stay Ahead of SBTi Changes with 51toCarbonZero
Navigating the evolving SBTi standards can be complex, but you don’t have to do it alone.

At 51toCarbonZero, we help organisations measure, manage, and reduce their carbon emissions with confidence. Our platform supports full Scope 1, 2, and 3 measurement, and our Climate Success Team is on hand to help you align with SBTi and other frameworks like SECR, CSRD, and ISSB.