SBTi Net-Zero Standard 2.0 shifts focus to implementation

The Science Based Targets initiative (SBTi) has released its Net-Zero Standard Version 2.0, marking a shift from mere ambition to implementation. The updated standards require companies to move beyond setting targets toward executing transition plans that integrate decarbonization into core business strategies and governance.

Key focus areas for the new standards include moving Scope 3 management from calculation to reduction, shifting data usage from disclosure to accountability, and treating net-zero goals as central to corporate strategy rather than just environmental targets. This evolution aims to link climate action with corporate value creation and capital market competitiveness.

In practice, companies like PepsiCo are already utilizing the flexibility provided by updated SBTi guidelines regarding supply-chain emissions. PepsiCo’s recent sustainability report highlights the use of environmental attribute certificates (EACs) and other market-based mechanisms to address Scope 3 emissions. While the company is on track for its 2030 goals regarding operational and land-related emissions, it continues to work toward reducing emissions within its broader value chain.