SCIENCE-BASED TARGETS (SBTs)

At an international level, Science-Based Targets (SBTs) today represent one of the approaches most recognised and frequently used by companies for setting GHG reduction targets. This is a methodology developed and promoted by Science-Based Targets initiative (SBTi), a joint initiative of CDP, UN Global Compact, WRI and WWF.

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Unlike traditional bottom-up approaches (based on the specific reduction capabilities of an individual company), SBTs adopt a top-down logic: they start from the goals of the Paris Agreement and the scientific necessity to limit global warming to 1.5°C compared to pre-industrial levels. Science determines the global decarbonization pathway and companies are required to align their business models with this trajectory. Why? Because there is no alternative.

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THE NEW V2.0 STANDARD: from theory to practice​

​With the launch of the SBTi Corporate Net-Zero Standard V2.0 (June 2026), the approach has undergone a historic evolution, shifting the focus from merely declaring targets to their actual strategic implementation.

The substantial changes include:

• Separation of scopes: It is no longer possible to combine emissions. Companies must set independent and separate minimum targets for Scopes 1, 2 and 3, ensuring maximum transparency at every level.

 

• 5-Year Target Cycle: To ensure targets reflect real progress, near-term targets are integrated into a five-year review and update cycle.

 

• "Best efforts" logic and transparency: An approach based on the best efforts principle is introduced, acknowledging that the decarbonization pathway can be influenced by external factors; companies must nonetheless demonstrate the actions taken and guarantee transparency regarding progress and the obstacles encountered.

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• Hierarchy of actions: The standard dictates absolute priority for direct reduction at the source and shared supply chain actions, leaving offsetting instruments only as a last resort.

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​THE TRANSITION TIMELINE OF THE V2.0 STANDARD

To allow companies to adapt to the new features of the V2.0 version, its entry into force outlines a gradual adoption plan:

➡️ Official Release of SBTi V2.0 (June 2026): Publication of the new Corporate Net-Zero Standard V2.0. The transition phase opens to allow companies to update their data collection and planning systems.

➡️ Transitional Phase of Free Choice (1 February 2027 – 31 January 2028): Companies can choose whether to submit their targets following the old V1 or the new V2.0. SBTi recommends continuing to use V1 if Scope 3 systems are not yet ready, in order to avoid delays.

➡️ Mandatory V2.0 Standard (From 1 February 2028): All new targets submitted to SBTi must obligatorily comply with the V2.0 criteria. Previously approved targets remain valid until the end of their natural cycle.
 

​TAILORED RULES: Category A and Category B

The new standard moves past the one-size-fits-all model by structuring proportionate requirements based on the impact, geographic and economic size of the company:

 

• Category A Companies (Large global companies and medium enterprises in high-income countries, as defined by the thresholds within the standard): They are required to set near-term targets across all three scopes (including Scope 3), must publish their Climate Transition Plan and must provide limited assurance (third-party auditing) on the base year data. For Scope 3, the standard allows the exclusion of non-material categories only (representing less than 5% of total Scope 3 emissions) or where there is an objective lack of influence.

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• Category B Companies and SMEs: They benefit from simplified procedures and pathways. For these entities, Scope 3 reporting is not an immediate near-term obligation, reducing the administrative burden and focusing efforts on direct emissions (Scope 1 and Scope 2).

Setting SBTs requires the scientific quantification of the Corporate Carbon Footprint as a fundamental prerequisite, which represents the essential starting point  for building any carbon management.
 

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