Procurement Learnings from SBTi’s Revised Net-Zero Standard

The Science Based Targets initiative (SBTi) is consulting on its revised Corporate Net-Zero Standard, releasing a second draft shaped by feedback from the initial round and further input from technical working groups.

The update seeks to strengthen scientific accuracy while making the framework clearer and more usable for organisations navigating decarbonisation.

The purpose behind the revision is straightforward: make it easier for companies to translate climate ambition into credible emissions reductions at speed.

A clear framework to guide decarbonisation

The revised Corporate Net-Zero Standard offers a streamlined structure that guides organisations in setting net-zero targets in a way that is consistent, actionable and scalable.

Rather than treating net zero as a distant goal, businesses are expected to embed it as a strategic direction, aligning operational and value chain activities with long-term climate goals. These plans must be supported by publicly-disclosed transition strategies.

The new structure establishes a full-cycle process, enabling businesses to demonstrate progress at the end of each target period while raising ambition as part of ongoing climate action.

David Kennedy, CEO at SBTi, says: “Businesses are driving global decarbonisation and will be key to achieving our climate objectives. Taking science-based action both reduces emissions and manages transition risks, maintaining competitiveness and offering growth opportunities in a carbon-constrained world.”

He adds: “By contributing to our public consultation stakeholders can help shape the future of corporate climate action and ensure the Standard helps companies to turn ambition into action and action into impact."

Scope-specific targets

The draft separates requirements for Scope 1 and Scope 2 emissions and provides clarified guidance on Scope 3, addressing the differing challenges posed by each.

Scope 1 covers direct emissions from owned or controlled sources; Scope 2 relates to indirect emissions from purchased electricity; and Scope 3 includes all other indirect emissions across the value chain.

The approach ensures organisations focus on the areas where they hold the most influence, particularly across Scope 3, where many of the largest procurement-related emissions lie. This is especially relevant for procurement and supply chain professionals seeking to understand where to act and how best to support suppliers in decarbonisation efforts.

Natsuru Toda, Manager of Nature Based Solutions at Mitsubishi Corporation, shares on LinkedIn: “While the draft may still evolve based on feedback, I found the concept of OER particularly interesting.” OER refers to 'other emissions reduction' methods, including interim steps that address ongoing emissions before complete decarbonisation is achievable.

By providing science-based options to sequence emissions-reduction measures based on business context, the draft offers flexibility while ensuring alignment with global climate goals. Both direct (within the company’s control) and indirect (linked to the wider value chain) reduction levers are covered, making the framework adaptable to varying operational models.

Alberto Carrillo Pineda, Chief Technical Officer at SBTi, comments: “With the publication of this updated draft we are taking a further step forward in making science-based climate action more inclusive, actionable and adaptable for businesses everywhere.”

“Already reflecting the feedback of hundreds of businesses and experts gathered in the first consultation, further input on this draft is crucial to ensuring that the finalised Corporate Net-Zero Standard is practical, credible and robust, helping businesses worldwide accelerate the net zero transition.”

Transparency to support action and accountability

Beyond guidance on emissions reduction, the revised standard introduces a new recognition mechanism for early, voluntary steps to tackle remaining emissions. While the focus remains on direct decarbonisation, this move acknowledges the reality that some emissions will take longer to eliminate.

Increased clarity around measurement, disclosure and target tracking is another central theme. The standard calls for consistent, transparent reporting to hold organisations accountable and to encourage continuous improvement throughout the transition.

Robert Höglund, CEO at Marginal Carbon AB and Co-Founder of CDR.fyi, responds on LinkedIn: “This new transparency (and possibly the recognition) could unlock a wave of climate finance. For carbon removal, the draft is a setback. There’s still no requirement, or even signal, for companies to begin scaling durable CDR today. The choices made now will decide whether durable carbon removal is ready when the world finally needs it.”

CDR, or carbon dioxide removal, refers to technologies and processes that extract CO2 directly from the atmosphere. While these are seen as essential in the long term, the standard maintains that immediate, direct emissions cuts must remain the priority.

By offering structured guidance on target setting, emissions tracking and progress reporting, the SBTi standard aims to support businesses in staying aligned with their net zero goals while remaining competitive.

The second consultation remains open as SBTi works to finalise a standard that is scientifically robust, practical for organisations and able to support meaningful climate progress across all sectors.