Launched in 2021, the SBTi standard aims to help companies set emissions reduction targets in line with the Paris Agreement goal of limiting global warming to 1.5°C. SBTi said Version 2.0 moves beyond a one‑size‑fits‑all model, with a broader menu of target‑setting options calibrated to different sectors, geographies and transition pathways.
“The next phase of corporate climate action is about delivering real-world transformation, and the Corporate Net-Zero Standard V2.0 is designed to help companies turn climate commitments into measurable progress and meaningful climate impact,” said David Kennedy, chief executive officer of SBTi.
The update lands as Asia emerges as a “new centre of gravity” for corporate climate ambition, with the region recording a 53 per cent jump in firms setting SBTi‑aligned targets over the past year and now accounting for 36 per cent of all companies with validated goals worldwide, according to the initiative’s data as of April.
For companies in Asia, SBTi said Version 2.0 brings specific benefits through tailored options for Global South markets. The updated standard introduces flexibilities on transition plan disclosure, data assurance and decarbonisation approaches, and makes Scope 3 targets optional for some categories of firms to better reflect the realities of emerging economies. These adjustments are expected to make it easier for Asian businesses to join and stay in the net-zero race, the iniative added.
That matters in Asia, where many companies face data gaps, evolving regulations and constrained internal capacity. For instance, a 2026 study of Singapore Exchange-listed firms found that 43 per cent of business leaders cited “data gaps” as a major barrier to adopting International Sustainability Standards Board’s (ISSB) Sustainability Disclosure-aligned climate reporting, alongside high costs and skills shortages. Many companies lack accurate, comprehensive emissions data, especially for Scope 3, making it hard to set or track science-based targets.
The new standard can also help Asian firms navigate transition risks and opportunities linked to emerging domestic regulations and export market rules such as the European Union’s Carbon Border Adjustment Mechanism (CBAM) and Corporate Sustainability Reporting Directive (CSRD), SBTi argued.
A new differentiated approach, which classifies companies by revenue and by the World Bank income category of the country where they operate, is intended to broaden participation while maintaining expectations for target setting and implementation, according to SBTi.
Under this model, certain requirements that are mandatory for larger “Category A” firms, which includes large companies from all countries and medium-sized companies from high-income countries, become optional for “Category B” companies, which are small companies from all countries and medium-sized companies from lower-income countries, as defined by revenue and other criteria, though SBTi said it “strongly encourages smaller businesses and those in lower-income markets to go beyond the minimum.”
SBTi added the new standard builds on more than a decade of work with thousands of companies worldwide and was shaped through public consultations, pilot testing and expert review before being signed off by its independent Technical Council and Board of Trustees. The goal is to turn the rapid uptake of climate targets — increasingly driven by Asia — into measurable emissions cuts this decade and put corporate net‑zero commitments on a more credible, science‑aligned footing.
“We are at a critical moment for climate action: companies have told us that they need a partner that can help foster implementation and that’s what the Corporate Net-Zero Standard Version 2.0 is designed to do,” said Kennedy.
