The Science Based Targets initiative (SBTi) is intensifying efforts to finalise the much-anticipated update to its Corporate Net-Zero Standard (CNZS 2.0)—a major framework overhaul expected to shape global environmental initiatives—scheduled for release in early 2026.
A distant view of an office meeting on climate goals, seen through trees. AI generated picture.
The London-based organisation, a key authority in corporate environmental target validation, cited the high resource demand for this framework to be completed before the 2026 target deadline. ‘Our key priority is to continue development of our flagship Corporate Net-Zero Standard V2 [CNZS 2.0] so companies worldwide can start using it from next year’, according to an SBTi spokesperson.
Work on CNZS 2.0 began in early 2024 and is closely monitored by carbon market stakeholders, particularly amid speculation about whether the revised standard will address SBTi’s current limitations on the use of carbon credits in voluntary environmental targets.
The draft Corporate Net-Zero Standard Version 2.0 introduces a more dynamic and accountable framework for corporate green action, moving the focus from ambition to measurable progress. It sets out an end-to-end model that guides companies through target setting, progress evaluation, and revalidation, with a stronger emphasis on transparency and continuous improvement. A key feature is its tiered structure, offering more stringent criteria for large and medium-sized companies in high-income regions, while granting flexibility to smaller firms operating in lower-income areas—ensuring inclusivity without compromising ambition.
To address longstanding challenges around Scope 3 emissions, the draft replaces rigid boundaries with a more flexible, impact-driven approach. It encourages companies to prioritise the most material emissions sources and to adopt non-emissions-based metrics, such as environmentally aligned procurement and revenue. The standard also introduces a more nuanced method for verifying progress, allowing indirect mitigation under specific conditions when traceability is limited. Alongside a renewed push for direct mitigation, the draft elevates the role of beyond value chain mitigation, positioning corporate finance as a lever for broader impact on nature. Throughout, it reinforces the Paris Agreement environmental goal as the foundation for all science-based targets, recognising the narrowing window for effective action.
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According to the Financial Times, representatives from Shell, Aker BP, and Enbridge withdrew from the expert advisory group (EAG) tasked with drafting the oil and gas standard after raising concerns about the scientific basis and strategic direction of the initiative.
Meanwhile, Shell’s withdrawal from the advisory group in late 2023 highlighted broader challenges in developing sector-specific guidance for the energy industry—a process the SBTi described as particularly resource-intensive. While the organisation maintains that its focus shift is unrelated to these departures, work on the oil and gas standard has been deferred until a later stage.
SBTi also recently launched a new net-zero standard for financial institutions. The framework requires immediate cessation of financing for new unabated fossil fuel projects and coal expansion, with a hard cut-off of 2030. ‘Ideally, this should happen immediately; the absolute cut-off is 2030, ’ the spokesperson said. A second public consultation on CNZS 2.0 is expected later this year.
Read more: SBTi rolls out guidance for mandatory review of corporate green targets
As the SBTi accelerates its overhaul of corporate environmental standards and financial institutions face stricter rules on fossil fuel engagement, the message is clear: green targets must be credible, transparent, and backed by real-world action. At DGB Group, we stand ready to support companies rising to this challenge, offering premium, nature-based solutions from reforestation and conservation projects that align with the most rigorous standards, including Verra and Gold Standard. Whether you're preparing for SBTi-aligned disclosures or strengthening your long-term sustainability strategy, we provide the tools to turn ambition into verifiable impact. Explore how your business can take the lead, starting today.
