Science Based Targets initiative (SBTi) : Toward a More Stringent Net-Zero Standard

What companies need to anticipate now

The Science Based Targets initiative (SBTi) is now the benchmark for companies seeking to align their climate strategy with science and pathways compatible with limiting global warming to +1.5 °C. The SBTi is an initiative that helps companies set greenhouse gas (GHG) and carbon emission reduction targets aligned with climate science, with the goal of limiting global warming.

In response to the rise of “net-zero” commitments, growing pressure from investors, and new regulatory requirements (CSRD, ESRS), the SBTi has undertaken a comprehensive review of its Corporate Net-Zero Standard.

The goal: to publish a V2 version that is clearer, more robust, and more actionable for companies.

Corporate Net-Zero Standard V2: Where Does the SBTi Really Stand?

Contrary to some common misconceptions, the Version 2 of the Corporate Net-Zero Standard is not yet a final standard.

The SBTi is currently conducting a structured development process, incorporating:

• successive draft standards,
• public consultations,
• and refinement phases prior to final publication.

The objective is twofold :

• to strengthen the scientific integrity of net-zero commitments,
• and to improve their practical applicability for companies, regardless of their sector and climate maturity.

SBTi Version 2: What Will Change

The ongoing work aims to clarify and strengthen several key points:

1. A more rigorous definition of “net-zero aligned”

The SBTi now clarifies the concrete conditions for alignment, linked to measurable and managed pathways, to ensure that companies’ commitments are both credible and actionable.

2. A more structured timeline for progress

Version V2 reinforces the journey approach: initial commitment, progress tracking, and goal renewal. By establishing this dynamic tracking, the SBTi aims to transform one-off commitments into credible, long-term action plans, thereby strengthening confidence in Net-Zero trajectories.

3. A reaffirmed priority on emissions reduction

Effective emissions reduction across Scopes 1, 2, and especially 3 remains central, particularly for companies whose carbon footprint is predominantly indirect. This priority underscores that offsetting can never replace reduction and that efforts must first focus on process transformation and the transition to low-carbon practices.

4. Strict Oversight of Offsetting

Offsetting will be reserved for residual emissions that cannot be reduced in the long term to prevent any practices that could be equated with greenwashing. The goal is to ensure that reduction efforts remain a priority and that companies do not simply offset their emissions without transforming their practices.

This shift addresses a central challenge: moving from declarative climate commitments to measurable, credible, and manageable trajectories over the long term. It thus ensures a transition to carbon neutrality that is truly aligned with the scientific goals for limiting global warming.

Why this evolution of the Science Based Targets initiative is strategic for companies

Committing to an SBTi approach allows companies to:

• Strengthen the credibility of their climate strategy with investors, customers, and partners;
• Anticipate regulatory and reporting requirements (CSRD, ESRS, client requirements);
• Develop a realistic decarbonization pathway integrated into operational and investment decisions;
• Reduce the risk of greenwashing by relying on a recognized and scientifically robust framework.

How ABGi supports your company in its SBTi process

At ABGi, we support our clients throughout the entire SBTi journey, with an approach that is both strategic and operational:

• Conducting comprehensive carbon assessments (Scopes 1, 2, and 3),
• Defining science-based reduction pathways,
• Developing concrete and prioritized action plans,
• Supporting the structuring of the SBTi application
• Establishing long-term management of climate commitments

Our goal is to make the SBTi process a true lever for transformation, performance, and credibility in ESG, rather than just another regulatory requirement.