The new SBTi standard: What's changing and what companies need to know now.

Why is there a new standard?

The requirements for climate targets have increased. More and more companies are setting themselves net zero targets. But it often remains unclear: how serious are they? Is the focus really on reducing emissions or just offsetting them? The SBTi wants more commitment, better traceability and real impact. That is why version 2.0:

• Clear guidelines on what targets must look like.
• A process for regularly reviewing the reduction in emissions.
• More transparency in implementation.

What remains the same?

Some basic principles still apply:

• Climate targets must be compatible with the 1.5 °C target.
• CO₂ must be reduced first, then offset.
• Net zero by 2050 at the latest is mandatory.

What's new?

We have summarized the most important changes for you according to the currently published draft:

1. Binding transformation plans

   Companies must now show how they intend to achieve their targets. In concrete terms: technologies, measures, timetables. These plans must be published within 12 months of the target being set.
   
   Example: A manufacturer wants to be climate-neutral by 2040. It must now disclose how it is converting production processes, integrating suppliers and investing in green technologies.

2. Progress review every 5 years

   Previously, the target was only checked once. Now, every five years, it must be shown whether the company is on the right track. Those who fail to deliver will lose the award.

3. New rules for Scope 3

   Previously, at least 67% or 90%, depending on the target, of Scope 3 emissions had to be covered across the board. This is called "blanket coverage" because you had to cover a fixed percentage of all Scope 3 emissions - regardless of whether you had a direct influence on them or not.
   
   What is new is that the decisive factor now is where the company really has an influence. Instead of a fixed percentage, the focus is on the largest sources of emissions and the areas in which a company can make concrete changes - e.g. with its most important suppliers.
   
   Example: A fashion company no longer has to record the emissions caused by washing its clothing at customers' premises, but it does have to record those caused by fabric production at suppliers. New target types are also permitted, e.g. what percentage of purchases are made from Net Zero-compliant suppliers or how the emissions intensity of individual product lines develops.
   
   This makes accounting more practical - especially for industries with complex supply chains.

4. Scope 1 & 2 must be accounted for separately

   Companies may no longer combine both areas. Separate targets must be set for direct emissions (Scope 1), such as the vehicle fleet, and indirect grid-bound emissions (Scope 2), such as electricity consumption.
   
   In addition, electricity emissions must be accounted for using both the site and market approaches. Guarantees of origin only count if they demonstrably contribute to the reduction.

5. New approach to residual emissions

   Companies must continue to neutralize residual emissions. What is new is that they can take responsibility for this even before reaching the net zero target year. Three models are under discussion:

• Early target setting for CO₂ removals (with interim targets).
• Voluntary recognition of such targets.
• Flexible choice depending on reduction potential.

Comparison: old vs. new standard

We have summarized the most important differences for you:

Conclusion: The new version of the SBTi standard makes many things clearer and more binding. Whoever says Net-Zero must also implement it. For companies, this means: more transparency, more responsibility, but also more clarity. Those who act early can secure a competitive advantage.