6th November was not only International Saxophone Day, it was also the day the Science Based Targets initiative (SBTi) released the second draft of its Corporate Net-Zero Standard [v2.0].  

The updated draft builds on the 2021 framework, aiming to clarify how companies can credibly align near-term actions with long-term net-zero goals. Here are our six key takeaways from the proposed changes and how they connect to broader corporate sustainability disclosures. 

1. Net-zero becomes the “north star” 

The revised standard positions net-zero as the unifying direction for all near-term and long-term corporate climate action. 

• Companies must now submit and publish a credible transition plan within 12 months of target approval. 

• The SBTi recommends aligning these plans with guidance from the Transition Plan Taskforce (TPT) and disclosure expectations under ESRS E1 and EFRAG’s sustainability reporting standards. 

• This alignment ensures consistency with ISSB S2 and TCFD principles on governance, strategy, and scenario analysis driving coherence across reporting landscapes. 

This step embeds climate strategy into corporate reporting and capital market expectations, shifting transition plans from “nice-to-have” to “core business governance.” 

2. Strengthened governance expectations

The new draft deepens accountability: companies will be required to assign formal oversight for net-zero targets within their board or executive structure, and seek assurance on base years from third parties, with target approval coming from the highest governing body. 

• This change echoes the governance requirements under TCFD and ESRS 2, where boards must demonstrate oversight of climate risks and opportunities. 

• It also reinforces the integration of net-zero commitments into strategic decision-making. 

SBTi is clearly pushing companies to integrate climate targets as board-level strategy, and not a separate project. 

3. Distinct scope 1 and 2 targets

The separation of Scope 1 and 2 targets which was introduced in the initial draft has now been expanded: 

• Scope 1: Multiple methodological options are proposed, including asset-level decarbonisation and increased low-carbon production shares. 

• Scope 2: Companies must now commit to 100% low-carbon electricity by 2040, strengthening expectations around renewable procurement and on-site generation. 

This differentiation mirrors ISSB S2’s and CSRD’s focus on energy transition metrics and renewable sourcing disclosures, reinforcing transparency on direct and indirect operational emissions. 

4. New approaches for addressing scope 1 emissions

Two pathways are introduced for companies with challenging direct emissions reduction pathways ahead: 

1. Asset-level decarbonisation, requiring intensity reductions at the facility or site level which reflects what is becoming the norm for those in the building and construction sector. 

1. Activity-mix transformation, increasing the share of low-carbon activities (e.g. electrification, bio-based fuels). 

This reflects a maturing understanding of how sectoral and technological realities differ.  

5. Greater flexibility on scope 3 target setting 

The second draft maintains its focus on material value-chain emissions, while allowing limited exclusions for low-impact categories. 

• It introduces an expectation for companies to engage suppliers in priority categories, ensuring traceability and measurable progress by 2035. 

• This aligns with the ESRS E1 value-chain disclosure requirements and the ISSB S2 Scope 3 emphasis. 

SBTi recognises that effective Scope 3 management depends on data quality and engagement within the supply chain, this therefore emphasises an interactive approach as opposed to perfect data the first time around. 

6. Recognising early action with new leadership categorisation 

Organisations that neutralise their emissions before 2035 will earn “Leader” status, signalling early achievement of net-zero ambition. 

• Larger and medium-sized companies will then be expected to gradually neutralise residual emissions between 2035 and their long-term target date. 

• This marks a philosophical shift: neutralisation is no longer a final step after reduction targets are achieved but a parallel effort to accelerate system-wide impact. 

Guidance remains the same from SBTi that investment in permanent carbon removals through a range of environmental attribute certificates (from carbon credits to other energy and commodity certificates) can complement emissions reduction but should never be a substitute for action on emissions.  

Just as every good saxophone solo relies on structure and timing, credible climate action depends on harmony between ambition, governance, and delivery. The SBTi’s new draft is tightening the rhythm. Now it’s up to companies to play their part in tune. 

Simply Sustainable will be responding to the consultation ahead of the 8th December deadline. If you have feedback or perspectives, please get in touch.