The Science Based Targets initiative (SBTi) plays a key role in shaping corporate climate action. First launched in 2021, its Net Zero Standard set out the initial framework for companies to align near - and long-term decarbonisation targets with science, covering everything from Scope 1 and 2 reporting to claims validation.
Now, with the SBTi Net Zero Standard V2 public consultation having closed on June 1st, we have summarised the key updates and latest insights on our new SBTi dashboard.
What is the SBTi?
The SBTi is a corporate climate action organisation that enables companies and financial institutions to reduce greenhouse gas (GHG) emissions in line with the 1.5°C pathway.
It provides the standards, tools and guidance needed to help companies set emissions reduction targets and reach Net Zero by no later than 2050. Its mission is to drive science-based climate action, with a vision of a Net Zero and equitable economy by 2050.
What’s new in the draft Net Zero Standard?
The new draft standard introduces a number of updates that aim to make the process more actionable, measurable and flexible for companies of different sizes and geographies:
Beyond Value Chain Mitigation (BVCM): Proposes incentives to support scaling up climate finance and removals
Scope 3 flexibility: Adds options to target green procurement and revenue generation
Accountability model: Introduces a full framework from setting targets to tracking and communicating progress
Split Scope 1 and 2 targets: Reflects the different decarbonisation challenges of each
Simplified requirements: Makes it easier for SMEs and firms in developing markets to set targets
Progress assessment: Includes standardised formulas to track performance over time
Residual emissions: Offers approaches to address remaining emissions at the Net Zero target year
SBTi claims: Adds new guidance on how companies can credibly communicate their status
Commitment process: Replaces the current letter with a more robust public declaration
Data quality: Requires limited assurance of GHG inventories from independent third-party verifiers
What does this mean for carbon removals?
Companies with SBTi Net Zero targets are aiming for completion dates between 2030 and 2051. Under the current draft, they could begin purchasing removals now, covering up to 10% of Scope 1 baseline emissions.
However, it’s unlikely that all companies will immediately match 100% of their projected residuals.
The draft proposes two core approaches for removals:
Set removal targets for the near - and long-term, matching residual emissions by the Net Zero year
Use a flexible approach, allowing a mix of additional reductions and gradually increasing removals over time
Demand forecast: What does the data say?
Our forecast shows two potential pathways:
Current targets only → steady but limited demand growth
Including future targets → sharp increase in demand as we approach 2050
This reflects the gap between where companies are today and the scale of action needed in the years ahead.
Why does this matter?
The SBTi draft standard will directly shape how companies approach their Net Zero targets and influence the timing and scale of removals demand over the next two decades.
We built this dashboard to give subscribers access to the key figures behind the policy, from company target dates to removals projections.