On June 11, 2026, the Science Based Targets initiative (SBTi) officially released its Corporate Net-Zero Standard (CNZS) Version 2.0. This update marks a monumental shift in corporate sustainability—moving global enterprises away from an era of voluntary ambition toward a strict, audited framework of mandatory implementation.
While the new standard officially goes into effect on February 1, 2027, a structured transition period gives companies with existing or pipeline targets a timeline to continue using V1.2 while also incorporating new elements of V2. Ultimately, CNZS V2.0 raises the bar for corporate climate action while providing highly flexible, actionable pathways to achieve real-world emissions mitigation.
SBTi V2.0 introduces considerable improvements to how companies set, track, and execute their climate goals. By accounting for geographical and sector-specific realities, the framework allows organizations to pursue progress on a realistic, “best-efforts” basis. Another structural update was the elimination of blended targets. Under V2, organizations can no longer aggregate targets for scopes 1 and 2. The V2 guidelines mandate a separate scope 1 target alongside tailored options for multiple scope 3 targets that align with your unique value chain levers.
The standard incentivizes action by introducing a strict hierarchy of implementation options, prioritizing direct mitigation while also recognizing a sophisticated range of market-based instruments across scopes 1, 2, and 3. The rollout of the voluntary Ongoing Emissions Responsibility (OER) program creates a formalized framework where high-integrity carbon credits and removals successfully complement your internal reduction targets.
The transition window is nuanced. To help your organization prepare, 3Degrees put together a comprehensive breakdown of the core updates in CNZS V2.0 and how to sequence decarbonization investments over the coming months.
The Big Shifts in SBTi V2.0
SBTi V2.0 formally establishes standard 5-year target cycles, moving away from loose long-term horizons. For the majority of companies, all target base-year inventories and final end-of-cycle progress assessments must now be validated using independent, third-party limited assurance. Gaps between actual emissions and target baselines in a cycle will require steeper, accelerated reductions in the subsequent cycle.
Organizations can no longer aggregate scope 1 and scope 2 targets into a combined metric. Under V2.0, you are required to set a standalone scope 1 target using absolute contraction, sector-specific intensity pathways, or a milestone-driven asset transition plan. Alongside this restriction comes new flexibility: market-based instruments conveying low-carbon attributes (like biomethane and RNG certificates) are explicitly permitted at the activity-pool level, provided they meet strict sustainability criteria.
Scope 2 mechanics are tightening. Market instruments (PPAs, VPPAs, and RECs/EACs) must now be contractually matched to geographically defined deliverability regions, meaning national or global portfolios may no longer satisfy regional constraints. Furthermore, large electricity consumers ($\ge$10 GWh annually per region) are now required to track and report the exact percentage of their power that is hourly-matched with low-carbon electricity. Companies can pursue hourly procurement as an optional recognition by SBTi.
To resolve the systemic supply chain barriers of the past decade, V2.0 completely reshapes scope 3 target-setting. Companies can now choose from overarching absolute reductions, supplier/customer alignment targets, or category-specific volume models. Crucially, the framework formally accepts both project-based accounting and market-based attribution frameworks, unlocking massive potential for companies to pursue supply chain interventions and actions.
Alongside the separate scope 1 requirement comes new flexibility: market-based instruments are now permitted toward scope 1 implementation immediately. For companies with process emissions or fuel combustion in their operations, this opens actionable pathways that weren’t previously available under SBTi:
- Biomethane/RNG certificates are accepted for scope 1 target implementation (alongside Proof of Sustainability where applicable)
- Renewable hydrogen EACs are recognized
- Sustainable aviation fuel (SAF) certificates are permitted for eligible operations
One important limitation: EACs cannot be used for any electricity generated behind the meter. And while these instruments are available now, additional guidance on scope 1 market instruments is expected by end of 2026, so some interpretation risk remains in the near term.
How 3Degrees Can Help
As standards evolve and climate policies shift from disclosure to enforcement, 3Degrees converts regulatory complexity into strategic business guidance. Whether you need to conduct a cross-scope readiness review to prepare for V2, audit pipeline energy assets against the 2027 legacy cutoff, source verified biomethane attributes for scope 1 targets, or coordinate complex scope 3 supplier interventions, 3Degrees bridges the gap between market uncertainty and commercial strategy.
What to dive into the technical details with our experts? Sign up for our upcoming webinar below.
SBTi V2 Webinar
“SBTi CNZS V2.0 Is Here: 3 Decisions Every Sustainability Team Must Make This Summer”
Join us on Thursday, July 9 at 8:00am PT / 11am ET for a breakdown of the V2 adjustments and overview of priority corporate actions for the next 6-12 months.
