Corporate Net Zero Standard V2.0: How to Prepare for 2027 Validation

The Corporate Net-Zero Standard V2.0 will change how companies prepare, implement and report science-based net-zero targets. Validation under the new Standard opens on 1^st February 2027, giving organisations a limited period in which to assess their emissions data, governance and implementation plans.

The revised SBTi net-zero standard places greater emphasis on the evidence behind a target. Companies will need to show how targets connect with their operations, value chains and corporate strategy, while reporting progress and implementation barriers transparently.

Tunley Environmental’s initial overview of SBTi Version 2.0 explains the wider changes. This article focuses on the preparations that organisations can undertake before submitting targets under the new requirements.

When Does Corporate Net-Zero Standard V2.0 Take Effect?

The Corporate Net-Zero Standard V2.0 was published on 11^th June 2026 and takes effect on 1 February 2027. SBTi Services will accept submissions under Version 2.0 from that date.

A transition period will allow companies to continue submitting targets under the Near-Term Criteria Version 5.3 and Corporate Net-Zero Standard Version 1.3.1 until 31 January 2028. Version 2.0 becomes mandatory for new submissions on 1 February 2028.

Organisations with validated targets do not need to replace them immediately. However, companies approaching renewal, developing targets for the first time or preparing their next target cycle should begin reviewing the new requirements.

First, Confirm Your Company Category

Version 2.0 replaces the separate route for small and medium-sized enterprises with two company categories. The applicable category affects scope 3 target setting, assurance and the publication of transition plans.

Category A includes companies in any country with net turnover of at least EUR450 million or 1,000 full-time equivalent employees. In high-income countries, other thresholds apply to medium-sized companies, including scope 1 and 2 emissions, turnover, balance sheet value and employee numbers. Companies that do not meet the Category A criteria fall within Category B.

Classification is determined during registration, reconfirmed during SBTi target validation and retained for the five-year target cycle. Organisations should document their calculation, the financial information used and the geographical basis for their classification. Corporate groups should also establish which legal entities fall within the proposed target boundary.

Review the Evidence Behind the Emissions Baseline

A reliable target begins with a complete greenhouse gas inventory. Version 2.0 requires companies to assess their organisational and operational boundaries, select a target base year and prepare an inventory that supports the proposed targets.

This review should identify missing facilities, acquisitions, leased assets and material value chain activities. It should also record calculation methods, emission factors, estimates and data limitations. Supplier averages or spend-based calculations may remain necessary in some scope 3 categories, but organisations should know where these methods materially affect the result.

Category A companies must obtain at least limited third-party assurance over target base-year data. Assurance is recommended for Category B companies. Preparing an evidence filing system before assurance begins can reduce delays caused by unclear data ownership, missing records or inconsistent calculation methods and enhance reporting transparency.

Build a Corporate Net-Zero Transition Plan Around Delivery

All companies must develop and maintain a corporate net-zero transition plan explaining how their science-based net-zero targets will be implemented. Targets must also receive approval at the organisation’s highest level of governance, with oversight maintained during implementation.

The plan should connect each target with funded emissions reduction initiatives, timeframes, accountable departments and measurable indicators. It should also identify dependencies outside the company’s control, such as grid decarbonisation, supplier capacity, technology availability or capital replacement cycles.

Operations, procurement, finance, product teams and facilities management may each own different parts of the plan. The sustainability team can coordinate the process and provide technical guidance, but implementation needs to be embedded within the departments controlling expenditure, assets and supplier relationships. The plan must also identify all external dependencies that could potentially impact the delivery of the targets; this needs to be accompanied by a list of actions to control and monitor the dependencies.

SBTi validates the presence of a transition plan and checks whether it contains the required elements. It does not endorse the plan’s overall quality, feasibility or compliance with legislation. Companies therefore remain responsible for testing whether their proposed measures are funded and implementable.

Prepare Separate Targets for Each Emissions Scope

Version 2.0 requires separate near-term targets for scope 1 and scope 2 emissions. Scope 1 target options include absolute emissions reduction, eligible sector-based intensity pathways and asset transition targets. Companies using intensity or asset transition methods may also need corresponding long-term scope 1 targets, depending on their category.

Scope 2 targets cover purchased electricity, heat, steam and cooling. Organisations should review both their emissions accounting and the evidence supporting low-carbon electricity procurement, including contracts, certificates, generation locations and contract dates.

Near-term scope 3 targets are required for Category A companies and optional for Category B companies. The Standard permits several approaches, including emissions reduction targets, supplier or customer alignment targets, and targets tailored to particular categories or activities. This creates flexibility, but the chosen method must reflect material emissions and the organisation’s influence within its value chain.

A company choosing to set an overarching net-zero target must establish near-term and long-term targets covering all three scopes and neutralise residual emissions at the net-zero year.

Apply the Implementation Hierarchy

The Standard introduces an implementation hierarchy for assessing how companies pursue their targets. Organisations should prioritise measures that reduce emissions from their own activities and value chains.

Where direct intervention is constrained, companies may support change within the relevant activity pool, such as an electricity grid, logistics network or supply system. Sector-level initiatives may be used where structural barriers prevent progress at the activity or activity-pool level.

These additional initiatives must be accounted for separately where their effects are not reflected in the company’s physical greenhouse gas inventory. They cannot be presented as reductions in inventory emissions without the necessary accounting basis. Maintaining this separation will be important when reporting progress and substantiating external climate claims.

Monitor the Proposed Electricity Clarifications

On 5 November 2026, SBTi opened a 30-day public comment period on proposed electricity clarifications. The proposals cover deliverability regions, funding new energy projects across regions, legacy contracts and exemptions relating to the 15-year generator age limit.

SBTi has stated that these proposals have not yet changed the Standard. Organisations should therefore avoid treating them as adopted requirements. However, companies preparing electricity procurement evidence should record contract commencement dates, generation locations and the grids in which electricity is consumed. This information will be useful if the clarifications take effect following the comment period.

Establish Reporting and Assurance Processes Early

Companies using Version 2.0 must track and report progress against validated targets annually. At the end of each target cycle, they must prepare a progress assessment covering changes in the physical emissions inventory, implementation measures, outcomes and material barriers.

Category A progress assessments require independent third-party assurance. An SBTi-recognised validation body will then use the assessment during the end-of-cycle review.

Organisations should define reporting responsibilities before validation rather than reconstructing evidence at the end of the cycle. A suitable internal register can record each target, underlying initiatives, expenditure, responsible department, expected emissions effect, dependencies and supporting documentation. This creates a consistent basis for management review and external reporting.

The Bottom Line

Corporate Net-Zero Standard V2.0 moves SBTi target validation towards a recurring cycle of target setting, implementation, reporting and assessment. Organisations preparing for 2027 should confirm their company category, strengthen their emissions inventory and establish governance before finalising targets.

Early preparation also gives companies time to test their corporate net-zero transition plan against operational constraints, procurement arrangements and available investment. The strongest submission will be supported by evidence that remains useful throughout the target cycle, rather than information assembled solely for validation.

Tunley Environmental supports organisations with carbon footprint assessment and net-zero strategy development. Our scientists can help companies review scope 1, 2 and 3 data, prepare science-based targets and develop an implementation plan aligned with the requirements of Corporate Net-Zero Standard V2.0.