The Science Based Targets initiative (SBTi) is revising its flagship Corporate Net-Zero Standard (V1.3), with a second round of consultation underway on version 2 (V2), closing 8 December 2025.
The standard update will enhance scientific rigor, increase accountability, and offer greater flexibility for companies across diverse sectors and geographies.
For companies considering validating their net-zero targets, the pending release of V2 raises an important strategic question – validate now under V1.3 or wait for the new V2 standard?
Follow our guidance to help make the right decision for your business.
1. When should my business sign the SBTi commitment?
‘Once published, companies are encouraged to adopt the Corporate Net-Zero Standard V2 immediately but may continue to set new targets under the current Corporate Net-Zero Standard (V1.3) and Near-Term Criteria (V5.3) until December 31, 2027.’ SBTi website
Once signed your company will need to submit targets for validation in 24 months or less.
Failing to meet that deadline may have reputational consequences for your organisation.
If the SBTi commitment is signed and targets submitted for validation in 2026, voluntary use of V2 standard is encouraged, but V1.3 of the standard can still be used.
From 1 January 2028, all companies will be required to use V2.
We recommend confirming targets with senior stakeholders, before signing the commitment. This makes for a more efficient process and ensures target submission well before the 24 months elapses. If validating under V1.3, familiarise yourself with and forward plan for V2 requirements.
2. Which years do we need to provide GHG emissions data for?
‘Companies must provide all the relevant GHG inventory data including a most recent year GHG inventory. For submissions in 2025, a recent year inventory must be provided that is no earlier than 2023 i.e., allowable most recent years are 2023 and 2024’. SBTi’s Corporate Net-Zero Standard V1.3
Base year and most recent year GHG inventories need to be provided for validation for both versions of the standard.
At Morelli Consulting, we support clients with the completion of GHG Protocol aligned emissions inventory calculations prior to SBTi validation.
3. Do we need a transition plan?
Corporate Net-Zero Standard V2 proposes the requirement of a published Climate Transition Plan within 12 months of target validation.
This should be aligned with international standards and/or applicable national or sub-national regulatory frameworks, such as the Transition Plan Taskforce (TPT) Framework.
If you are aligning with V2 of the standard, it is important you start the process of developing a transition plan.
We recommend TPT aligned transition planning and support our clients to outline their steps clearly and simply towards decarbonisation, whilst also developing the detail needed to meet regulatory disclosure requirements.
4. Which category does our company fall into?
V2 of the standard proposes a new classification system to tailor requirements based on company size and geographical.
Category A: Large and medium-sized companies in higher-income countries. These companies will face the most stringent requirements.
Category B: Small and medium-sized companies in lower-income countries. These companies will have increased flexibility with some criteria.
5. Will we need third-party limited assurance?
V2 proposes a limited assurance of calculated values for metrics used in target setting as a minimum requirement.
We provide companies with pre-assurance support to road test their data and information prior to completing an assurance process. See our recent blog on Why pre-assurance is a sustainability superpower.
6. Do we need to publicly report our targets and progress?
Both versions of the Corporate Net-Zero standard require annual publication of GHG emissions inventory and progress against targets. V2 proposes a requirement for publicly reporting on the target base year and target information within six months of completing the validation process.
We have decades of experience helping clients produce stakeholder-led sustainability reports
Client case study: Data validation for public reporting
Morelli has been partnering with ABF (Associated British Foods) for over 15 years and as part of our scope of work, we:
- Lead the annual process to validate the Group’s Health Safety and Environment data, including all emissions data.
- Turn data insights into progress updates for ABF’s Board, Annual Report and Responsibility Report.
- Co-manage the relationship with their Big 4 assurance provider to ensure data management efficiencies when engaging with data teams across the Group.
“Shelley and her team are a pleasure to work with – guiding us on what to consider next in our sustainability journey and helping us to deliver above compliance. Our global teams know they can contact Morelli for assistance and will receive practical support from the team.”
Jay Dhillon, Head of Risk and Sustainability
ABF Ingredients
7. What else do we need to consider?
V2 proposes the requirements for:
- Separate targets for scope 1, 2 and 3
- Diversified target setting methods
- Tightened requirements for low carbon electricity (in a phased approach)
- Flexibility in scope 3 targets
- Recognition frameworks
- Renewal validation
There are pros and cons for submitting targets under the current version 1.3 or waiting until version 2 is in action. The right approach is the one that is best for your business.
Get in touch with the Morelli team at [email protected] to learn more and discuss the right approach for your business.
Client case study: SBTi validation
For client AB World Foods, committing to a FLAG and non-FLAG science-based targets involved several rounds of SBTi technical enquiries during validation.
Morelli helped make this a smooth process, working in harmony with all partners involved, supporting AB World Foods from data collation through to successful validation.
“Thank you to the Morelli team for guiding us through the science-based target validation process, helping us balance other business priorities with a smooth approach to validation. The team were proactive, helpful and very knowledgeable, down to the finer points of detail that SBTi required.”
Debbie Dyson
Supply Chain CSR Manager, AB World Foods
