The New Rules of Net Zero: Inside the 2025 SBTi Standard Revisions

Globally, the race to meet Net Zero targets has intensified, driven by mounting environmental pressures and the growing urgency of the climate crisis. Governments, corporations, and organizations are scrambling to align their climate strategies with the latest science and international frameworks. The Science-Based Targets initiative (SBTi) has been at the forefront of setting the standards for corporate Net Zero targets, offering a structured approach to tackling climate change. However, as the climate crisis escalates, so too must the standards. In 2025, the SBTi is revising its Net Zero Standard to make it more robust and applicable across industries.

These revisions are not merely technical adjustments; they signal a shift in how businesses approach climate action. They affect everything from target-setting and reporting to emissions accountability. This blog will explore the recent revisions to the SBTi Net Zero Standard and what they mean for businesses looking to align with global climate goals, ensuring that their sustainability strategies remain credible and impactful.

What is the SBTi Net Zero Standard?

The Science-Based Targets initiative (SBTi) is a global partnership between CDP, the UN Global Compact, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). The SBTi encourages businesses to set targets that are in line with the latest climate science to limit global warming to 1.5°C above pre-industrial levels. The Net Zero Standard, specifically, guides companies in setting credible Net Zero emissions targets across their value chains.

Businesses that commit to the Net Zero Standard are required to make science-based commitments to reduce emissions, with an emphasis on decarbonizing supply chains, operational activities, and even the use of sold products. The goal is not only to reduce emissions but to achieve carbon neutrality by balancing emitted CO₂ with an equivalent amount of carbon removed from the atmosphere.

However, as science progresses and more industries get involved, the criteria for Net Zero targets must evolve to keep pace with growing evidence and emerging best practices. This is where the revisions to the SBTi Net Zero Standard come in.

Key Revisions in the SBTi Net Zero Standard

The revisions to the SBTi Net Zero Standard in 2025 mark a major shift in how businesses will be expected to set and measure their climate goals. Below are some of the most significant changes:

• Greater Focus on Scope 3 Emissions: While previous versions of the standard already addressed Scope 3 emissions (those indirect emissions from the supply chain, business travel, and product use), the updated version introduces stricter requirements. Companies are now required to ensure a higher degree of transparency and accuracy in measuring, reporting, and reducing Scope 3 emissions — often considered the most difficult to control. Scope 3 emissions are notoriously challenging due to their complexity, involving indirect activities like supply chains, product use, and business travel, which are harder to measure and control.
• Longer-term Carbon Removal Targets: One of the most notable revisions is the updated expectations around carbon removal. While previous versions allowed for certain offsets and removals as part of meeting Net Zero goals, the 2025 version introduces a clearer timeline and stricter requirements. Companies will now need to account for more immediate and verifiable carbon removal solutions alongside reductions.
• Enhanced Target Validation: The SBTi now offers more stringent requirements for the validation of targets, ensuring that businesses' Net Zero claims are genuinely science-based. The revised criteria will require third-party verification of both short-term and long-term goals.
• More Comprehensive Reporting Guidelines: The SBTi is revising its reporting protocols, focusing on consistency and transparency across sectors. Businesses will be required to provide clearer documentation on how they are achieving their targets and which measures are being taken to ensure accountability.

Why These Revisions Matter for Businesses

As businesses increasingly face pressure from governments, investors, and consumers to take action on climate change, these revisions to the SBTi Net Zero Standard represent a critical shift. Here’s why they matter:

• Increased Accountability: The new revisions demand more transparency and evidence from businesses, making it harder to "greenwash" or falsely claim Net Zero status. This will help businesses gain trust and credibility with stakeholders.
• Financial and Strategic Benefits: Companies that are ahead of the curve in meeting the new SBTi standards will be seen as leaders in sustainability, potentially unlocking new markets, attracting investment, and improving customer loyalty.
• Regulatory Compliance: As governments around the world tighten emissions regulations and introduce new climate policies, businesses that comply with the updated SBTi standards will be in a stronger position to meet regulatory requirements, avoiding penalties and enhancing their long-term viability.

How the Revisions Fit with Global Climate Goals

The 2025 revisions to the SBTi Net Zero Standard do not exist in a vacuum. They are part of a broader global effort to curb emissions and limit global warming. The new standards align more closely with international climate agreements such as the Paris Agreement and the United Nations’ 2030 Agenda for Sustainable Development.

The Paris Agreement sets a target to limit global warming to well below 2°C, with an aspirational goal of limiting it to 1.5°C. The updated SBTi Net Zero Standard aims to support businesses in contributing to this global effort. By aligning corporate Net Zero targets with scientific targets and international commitments, companies are not only playing their part in the global climate fight but also positioning themselves as responsible corporate citizens.

As part of the UN Climate Change Framework, the updated SBTi Net Zero Standard will encourage businesses to go beyond just reducing emissions — they must take a comprehensive approach, addressing carbon removal and the environmental impact of their entire value chain.

Indirect Mitigation Gains Traction: Beyond Value Chain Mitigation Gets Recognition

An important update in the Net Zero Standard 2.0 is the increased recognition of indirect mitigation strategies, going beyond a company’s direct value chain. Historically, Net Zero targets focused heavily on reducing emissions within the value chain, but the new guidelines acknowledge the importance of mitigating emissions outside of traditional value chain boundaries.

This includes indirect emissions that companies can influence or support — such as through investments in carbon reduction projects, collaborations for sustainable infrastructure, or sponsoring climate initiatives in communities where their supply chains operate. These indirect efforts have gained significant traction, as businesses seek ways to amplify their climate impact beyond the immediate operations and products they control.

The updated SBTi Net Zero Standard now recognizes these indirect mitigation actions as part of the broader Net Zero strategy, encouraging companies to integrate them into their transition plans. This shift means that businesses can play an even more expansive role in reducing global emissions, further contributing to climate action beyond their direct emissions footprint.

For instance, a company might support community-based renewable energy projects, invest in clean-tech solutions, or partner on large-scale forestation efforts — all of which can contribute to global carbon reductions, even if they lie outside the company's direct operations. This recognition allows companies to broaden their climate contributions, especially when direct emissions reduction is challenging.

Metrics and Reporting: Adjusting to the New SBTi Net Zero Standard

One of the key revisions is the significant change in how companies will need to report their progress. Transparent, accurate, and consistent reporting will be more critical than ever. The updated SBTi Net Zero Standard provides clearer guidelines on:

• Tracking Scope 1, 2, and 3 emissions: The revised standard places stronger emphasis on tracking indirect emissions, especially in the supply chain and product usage. This means businesses will need to gather more granular data and use reliable emission factors.
• Carbon Removal and Offsets: Companies will need to report how they are using carbon removal strategies (such as reforestation or carbon capture technologies) in addition to reducing emissions. The emphasis on ensuring that removals are additional, permanent, and verifiable will require businesses to adjust their metrics and track these efforts carefully.
• Third-Party Verification: Companies will need to engage with external auditors or third-party validators to ensure that their Net Zero claims are credible and in line with the updated SBTi criteria.

Businesses will also need to update their sustainability reporting frameworks to include detailed information on how they are meeting the new SBTi requirements. This will involve integrating climate data into ESG (Environmental, Social, and Governance) disclosures, providing investors and stakeholders with transparent insights into the company’s climate action efforts.

Implications of the Revisions on Businesses

With these revisions, businesses will face both challenges and opportunities. While the increased scrutiny and accountability might seem daunting, the revisions provide a framework for businesses to stay ahead of the curve in climate action.

For businesses that are already on the path to Net Zero, the updates will help streamline their strategies and reinforce their credibility. However, those that have not yet made significant progress will need to accelerate their efforts and integrate more comprehensive reporting and accountability mechanisms into their operations.

Steps Businesses Need to Take to Align with the New SBTi Standard

Here are some steps businesses can take to align with the new SBTi Net Zero Standard:

• Assess Current Emissions: Conduct a detailed assessment of emissions across Scope 1, 2, and 3. Ensure that emissions data is accurate and comprehensive.
• Set Short-Term and Long-Term Targets: Define clear, science-based targets that align with the updated SBTi criteria. Ensure that these targets are ambitious and achievable.
• Engage Third-Party Auditors: Hire independent auditors to validate emissions reductions and carbon removal efforts.
• Update Reporting Practices: Align your reporting systems with the revised SBTi guidelines. Make sure that all emissions reductions are transparently reported, and include carbon removal metrics.

Conclusion

The revisions to the SBTi Net Zero Standard represent a significant step toward ensuring that corporate climate action is robust, transparent, and aligned with global efforts to combat climate change. For businesses, adapting to these revisions will not only help achieve sustainability goals but will also position them as leaders in the fight against climate change. By taking action now, businesses can future-proof themselves, contribute to global Net Zero targets, and unlock new opportunities in an increasingly sustainability-conscious world.