Key Insights from the SBTi Net-Zero Standard V2

What SBTi Net-Zero Standard V2 means for companies already committed to SBTi V1

The new draftaims to raise ambition, improve transparency, and ensure credibility as more companies commit to net-zero. Here's what you need to know:

1. Clearer structure: Near-term, long-term & Net-Zero targets

Near-term targets (5–10 years): Accelerate action in this decade.
Long-term targets (by 2050 or earlier): Required for full decarbonization.
Net-zero = long-term targets + residual emissions removed.

**Guidance: Don’t just set targets — align short and long-term strategies across business functions. Ensure you're planning for residual removals (like carbon removals) now.**

2. Stronger emphasis on progress monitoring

Companies must now demonstrate progress toward targets, not just set them.
Verification and accountability become core pillars.****

Tip: Ensure your systems allow real-time tracking of emissions and initiative progress, not just annual reporting.

3. Tougher Scope 2 requirements

Location- and time-matching for renewable energy is in focus (e.g., 24/7 clean power).
Certificates like RECs will need to be more closely tied to actual energy use.

Action: Reevaluate your energy procurement strategy — simply buying offsets or RECs won’t cut it.

4. More flexible but focused Scope 3 approach

Prioritise the most material Scope 3 categories.
Green procurement and value chain engagement will be central.

**Guidance: Collaborate deeply with suppliers (but don't just ask for the data-use the data to simulate and ideate initiatives together with both suppliers & customers. Missing supplier data? Now’s the time to fix that with access to accurate secondary data as startingpoint.**

5. Mandatory Climate Transition Plans

Required within 12 months of target approval.
Should include interim milestones, governance, finance alignment, and stakeholder engagement.****

Make it work: Link initiatives to business outcomes and show adaptability when customers, suppliers, or regulations shift.

6. Introduction of interim removals + BVCM

Introduces interim targets for carbon removals and encourages Beyond Value Chain Mitigation.
But these do not replace real reductions.

Takeaway: Invest in removals — but prioritise internal emissions cuts first. (our recommendation - be very clear what you do and how you do it - do everything you can to focus on internal initiative first)

SBTi V2 transition timeline — key dates for companies

2025–2026 - Near-term targets can follow current version (V1.2)

From 2027 - All new targets must follow V2

By 2030 - All existing targets must be updated to V2

What sustainability and procurement teams should do now to prepare for SBTi V2

Audit your current targets and identify gaps with V2 requirements.
Develop real-time data (use secondary verified and accurate data ie from Unibloom's database if you are missing data from suppliers and highlight the importance for your supplier engagement.
Map out your climate transition plan across teams and regions.
Build the business case: How do targets align with growth, costs, and national decarbonisation pathways (e.g., energy grid changes)?
Ensure board and leadership can easily understand your roadmap — without needing 20 PowerPoint slides.

**More info and join the consultation: SBTi Consultation Portal**

Still stuck in spreadsheets, scattered data or no data & a gap of innovations and initiatives to close the gap? Unibloom can help you build a digital, adaptable and granular Climate Transition Plan - integrated with business, financials and secondary data to verify various initiatives in minutes, not years. (https://www.youtube.com/watch?v=c9FhsTLLhvI)

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28 of April: Take Climate Planning from Reporting to Real Action, digitised

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