Science-Based Targets are changing: What the new Net-Zero Standard means for businesses
In this guest blog, Arthian draw your attention to changes to Science-Based Targets, and provide advice on actions to take, both for businesses that have Science-Based Targets already and for those that don't. Arthian are a member of NetRegs Business Advisory Group.
Summary
Does your business have a net zero goal aligned with the Science Based Targets Initiative (SBTI)? Did you know that the emphasis in science-based climate targets is now changing?
The latest update (Version 2.0) to the SBTI Corporate Net-Zero Standard shifts the dial beyond setting ambitions and towards showing how they will be delivered. It signals that clear plans, defined responsibilities and evidence of progress will become increasingly important.
For organisations with existing Science Based Targets, the update is likely to mean closer attention to how climate action is managed across the business, how progress is reported and how suppliers and customers are involved. For those without formal Science Based Targets, it still offers a useful indication of the expectations emerging across markets and supply chains.
The revised framework is expected to begin from 2027. Businesses may therefore benefit from reviewing their current arrangements now, including who is responsible, whether plans are realistic and whether the information needed to track progress is available.
Existing management systems, such as ISO 14001, may provide a practical foundation for this work. The newly issued 2026 version of the environmental management standard included the emphasis on life cycle, climate risk, ecosystem considerations and planning and management of change. This can align strongly with supporting priority actions in an SBTI plan, for example not only for operational scope 1 and 2 emissions, but also looking to collaboration and supply chain programmes to reduce Scope 3 emissions.
The central message is straightforward: climate commitments are increasingly being judged by the action behind them – results matter. The full article explains the main changes, what they could mean for different businesses and the practical steps businesses can consider as expectations develop.
Science-Based Targets are changing: What the new Net-Zero Standard means for businesses
The Science Based Targets initiative (SBTi) has launched Version 2.0 of its Corporate Net-Zero Standard, introducing the biggest update to the framework since it was first published. The changes reflect lessons learned from more than 11,000 companies that have set science-based targets and are designed to help businesses move from setting climate commitments to delivering measurable results.
For businesses that already have science-based targets, or are considering setting them, the message is clear: achieving net zero is no longer just about having a target. It is about demonstrating credible progress, planning effectively, integrating climate action into business processes and being transparent about the challenges along the way. Many organisations are finding that climate-related management is becoming an increasingly important part of wider environmental governance, customer requirements and stakeholder expectations.
What are Science-Based Targets?
Science-based targets are greenhouse gas reduction targets that align with the latest climate science and the IPCC (Intergovernmental Panel for Climate Change) global goal of limiting warming to 1.5°C “The Paris Agreement”. Science-based targets provide businesses with a structured approach to reducing emissions, manage transition risks and support the shift to a low-carbon economy.
A greater focus on delivery
One of the most significant changes in the new standard is the emphasis on implementation. In the past, much of the focus was on developing and validating targets. Under Version 2.0, businesses will be expected to show how those targets are being delivered in practice.
This means organisations will need clearer governance arrangements, defined responsibilities and regular oversight of climate performance. Climate action is increasingly expected to be integrated into business decision-making rather than sitting solely within sustainability teams. Key areas of focus are likely to include procurement and supply chain engagement – with parties throughout the value chain making carbon reductions for mutual benefit.
Transition plans become essential
The updated standard places much greater importance on transition planning. Businesses will need to demonstrate how they intend to achieve their targets, including the resources, investments and actions required. They will also be expected to identify barriers that could affect progress and explain how these are being managed.
For many organisations, this will help create a stronger link between climate commitments and wider business strategy, investment planning and operational decision-making.
More reporting and transparency
The new standard introduces a stronger focus on accountability and progress reporting.
Organisations will be expected to provide regular updates on the actions they are taking to reduce emissions and the progress being made against their targets. They will also need to be transparent about any challenges, assumptions or external factors that may affect delivery.
Where your climate commitments form a customer or other stakeholder requirement – these are ‘compliance obligations’ within ISO 14001 – make sure your internal compliance audits are checking records and data for meeting these requirements and their timelines.
This increased transparency is intended to help investors, customers and other stakeholders understand whether businesses are making meaningful progress towards their climate goals.
Greater attention on supply chain emissions
Many businesses find that a significant proportion of their emissions occur outside their direct operations, within their supply chain and wider value chain.
Version 2.0 places greater emphasis on transparency across different emission sources, including direct operations, purchased energy and value chain emissions. This means organisations will need a better understanding of where emissions occur and will often need to work more closely with suppliers and customers to identify opportunities for emissions reductions. There is a strong link here with ISO 14001:2026; the emphasis on life cycle considerations and also climate risk/action – joining up improvement programmes may be an opportunity for many businesses.
For businesses that have not yet started engaging with suppliers on carbon emissions, now is an ideal time to begin. Many organisations are already seeing growing requests from customers and larger organisations for carbon data and information on emissions reduction efforts.
Recognising real-world challenges
Reducing emissions is not always straightforward. Factors such as infrastructure availability, emerging technologies and wider market conditions can all influence what businesses can achieve and when.
The new SBTI Version 2.0 standard acknowledges these challenges through a "best efforts" approach. Businesses are expected to take meaningful action, use the tools available to them and report transparently on progress and barriers. The emphasis is on demonstrating credible efforts and continual improvement rather than simply reporting results.
What should businesses do now?
The SBTi has published Version 2.0 and companies are expected to begin using the updated framework from 2027 as transition arrangements are introduced. Organisations do not need to wait before taking action.
Practical steps include:
• Reviewing existing climate targets and understanding when they will need to be renewed.
• Refreshing climate commitments your business may have – be clear on expectations and timelines.
• Identifying who is responsible for delivery and oversight of climate commitments.
• Assessing whether a clear transition plan is in place.
• Improving emissions data, particularly for supply chain emissions.
• Establishing reporting processes that can demonstrate progress over time.
• Engaging suppliers and key stakeholders to support emissions reductions.
• Considering how climate objectives can be integrated within existing management systems, including ISO 14001:2026.
Taking these steps now can help businesses prepare for future requirements while strengthening their overall approach to climate management and environmental governance.
What this means for your business
Although the updated standard is aimed at organisations setting science-based targets, many of the underlying themes are relevant to a much wider range of businesses. Customers, investors and supply chain partners are increasingly seeking evidence that organisations are actively managing their environmental impacts and can demonstrate progress against climate-related commitments.
For businesses that already have science-based targets, Version 2.0 will place greater emphasis on demonstrating how targets are being achieved, rather than simply setting them. Organisations may need to strengthen governance arrangements, improve emissions data and develop clearer implementation plans to support future reporting requirements.
For businesses that do not currently have science-based targets, the changes still provide a useful indication of the direction of travel. Improving emissions data, engaging suppliers and integrating climate considerations into existing management systems can help organisations respond to evolving stakeholder expectations and identify opportunities to improve efficiency, resilience and competitiveness.
Looking ahead
The updated Corporate Net-Zero Standard represents an important shift in the way climate action is assessed. The focus is moving beyond target-setting and towards demonstrating how emissions reductions are being achieved in practice.
Over the coming years, organisations will begin transitioning to the updated framework as new target submissions are made under Version 2.0. Businesses that start reviewing governance arrangements, emissions data, supply chain engagement and transition plans now will be better prepared for future reporting expectations and stakeholder requirements.
For many organisations, the changes also present an opportunity. By strengthening environmental governance, improving the quality of emissions data and embedding climate objectives within existing management systems such as ISO 14001, businesses can build greater confidence in their sustainability programmes and demonstrate a more robust approach to managing environmental risks and opportunities. An efficiency saving or reduction with one supplier can also be replicated in industry for other customers, scaling and supporting the wider agenda of decarbonisation.
While every organisation's journey will be different, the direction of travel is clear: businesses are increasingly expected not only to set climate ambitions, but also to show how those ambitions are being translated into meaningful action and measurable results.
Glossary
Science-based target (SBT): A greenhouse gas reduction target that aligns with the latest climate science and supports limiting global warming to 1.5°C.
Scope 1 emissions: Direct emissions from sources owned or controlled by a business.
Scope 2 emissions: Indirect emissions associated with purchased electricity, heat, steam or cooling.
Scope 3 emissions: Indirect emissions occurring across a company's value chain, including suppliers, products and services. These are often the largest source of emissions for many organisations.
ISO 14001:2026: Environmental Management Systems standard (published April 2026; transition to the new standard by early 2029).
You may also read this blog on Arthian's website.
Additional Information
See also related NetRegs guidance: Environmental Management.
Arthian, a member of NetRegs's Business Advisory Group, was formed through the merger of Mabbett and IKM.
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