Setting a net-zero target just got more demanding: here's what to do first

If your company has a validated net-zero target, the Science Based Targets initiative (SBTi) just added a new question you'll need to answer: not just what you're aiming for, but how you're getting there.

The SBTi Corporate Net-Zero Standard (CNZS) Version 2.0 serves as a comprehensive framework for corporates to establish and implement climate targets aligned with the goal of reaching net-zero emissions by 2050. Released in June 2026, this updated standard marks a significant shift in the climate target landscape. Companies reaching their mandatory five-year target review during this window should prioritize V2.0 readiness now. By choosing early alignment over a simple renewal, you position your organization to meet the updated standards long before the target validation becomes fully available in Q1 2027 and mandatory in 2028.

What changed, at a glance:

• Scope 1 now requires its own standalone target, no longer bundled with Scope 2
• Companies are split into two categories, A and B, with different levels of requirement
• Scope 2 introduces hourly and geographic matching alongside the existing annual approach
• Market instruments like EACs and PPAs now face new age and deliverability rules
• Governance requirements are new: board-level approval and a published transition plan
• The assurance process shifts from a one-time validation to an ongoing end-of-cycle assessment, increasing the pressure to stay on track toward net-zero over time
• Monitor when the next submission is due
• Identify the changes that your company can now start preparing to work towards
• Work closely together with the energy procurement to ensure that any procurement activity potentially falling under the new submission deadline fulfils the new requirements

Full mechanics on all of the above are in our companion white paper, coming soon. Below, we focus on what the Implementation Hierarchy means in practice, and what it means for sustainability and procurement teams specifically.

The Implementation Hierarchy: The most significant shift in V2.0 is the introduction of a formal implementation hierarchy. Instead of just setting a target, companies must now prioritize how they deliver it:

• Direct Actions (Activity Level): Prioritizing emissions reductions at the source within operations and value chains (e.g., efficiency, fuel switching).
• Shared Systems (Activity Pools): Taking action within shared systems like electricity grids or "supply sheds" where individual source identification isn't feasible.
• Sector-Level Actions: Allowed only when structural constraints (technological or regulatory) prevent direct action, ensuring companies contribute to transitioning their entire industry.

If your company already has validated targets, your targets remain fully valid throughout their current cycle. You are not required to immediately transition to CNZS V2.0. However, you want to make sure you are prepared to transition as soon as this is needed.

The submission can be triggered either if one of your existing target years has arrived or as a consequence of the mandatory Five-Year Review.

Which standard applies depends on when your submission deadline falls:

• If your deadline falls before 31 January 2028, you can choose V1.3.1 or CNZS V2.0 (subject to CNZS V2.0 opening in February 2027).
• After 31 January 2028, only CNZS V2.0 is eligible.

Key points for Sustainability Managers:

• Monitor when the next submission is due
• Identify the changes that your company can now start preparing to work towards
• Work closely together with the energy procurement to ensure that any procurement activity potentially falling under the new submission deadline fulfils the new requirements

Key points for Energy Procurement Managers:

• Audit your current electricity contracts against the new deliverability and vintage rules and identify gaps
• Upcoming RFQs and procurement: work towards alignment with CNZS V2.0
• Understand your exposure under hourly matching (matching hourly electricity consumption with low-carbon generation, rather than the current annual approach)
• Review any new opportunities for biomethane

On Scope 1, what we're seeing in CNZS V2.0 is an acknowledgement that decarbonization here isn't one-size-fits-all. The Standard now recognizes the scope requires its specific reduction roadmap, considering the real complexity of energy systems, including renewable gas markets. Notably, this is the first version to mention commodity certificates as a legitimate bridge part of the implementation hierarchy, but we'd caution that further guidance will be developed, and this only holds if it's backed by solid tracking and real anti-double-counting safeguards.

On Scope 2, the shift is more disruptive than it might first appear. Companies should move from the "buy enough certificates, and that's all" approach toward something far more granular. In practice, efficiency retrofits, demand response, and load-shifting can no longer sit on the sidelines; they need to be core levers alongside procurement strategies. The good news is that existing contracts get grandfathered for their full duration, so there's no need to unwind what's already in place. But for the rest of the portfolio, anything not yet segmented by region, contract vintage, or integrity criteria, we'd recommend starting an assessment as soon as possible.

In conclusion, your company should start reviewing these CNZS V2.0 updates and identifying improvements in your current decarbonization strategy. The goal is to get ahead of the 2028 transition and understand which PPAs and EACs will still qualify once the full shift to CNZS V2.0 takes effect.

Timeline: what to expect?

The SBTi has published, with the CNZS V2.0, a comprehensive set of methods and pathways embedded in a target-setting tool. Stakeholders are invited to explore these materials and provide feedback by 31 July 2026.

For the full breakdown of scope-by-scope target-setting, the Category A/B thresholds, and the detail that determines exactly which requirements apply to you, our white paper on CNZS V2.0 is coming. Keep an eye out for it.