PART 1: What SBTi V2 Actually Changes — and Why It Matters Beyond the Headlines

Most companies that hear “SBTi” assume it’s someone else’s concern. A large-company problem. Something for the sustainability team at a corporation that has a sustainability team.

That assumption is becoming less accurate by the month.

The Science Based Targets initiative — the world’s leading framework for corporate emissions reduction — has released the most significant overhaul of its Corporate Net-Zero Standard since the standard launched in 2021. Version 2.0 is currently in final consultation, with the definitive standard expected later in 2026 and mandatory adoption for new targets from January 2028.

The changes are substantive. And their effects extend well beyond the large corporations that tend to dominate the conversation. This post is a plain-English breakdown of what V2.0 actually changes, and why the timeline is shorter than most businesses realise.

First: What Is SBTi, and Why Does It Matter?

The Science Based Targets initiative develops standards that allow companies to set greenhouse gas emissions reduction targets aligned with climate science and the Paris Agreement’s goal of limiting global heating to 1.5°C. More than 10,000 companies globally now have validated SBTi targets — a figure that has grown rapidly as investors, procurement teams, and regulators increasingly treat SBTi alignment as a baseline expectation rather than a differentiator.

In simple terms: if you want to credibly claim your business is on a path to net zero, SBTi is the standard most people point to as proof. And that proof is becoming harder to avoid being asked for.

What's Actually Changing in V2.0?

The current standard (V1.3) remains active until December 31, 2027. Version 2.0 is expected to be finalized in 2026, and from January 2028, all companies setting new targets must use it. Here are the changes that matter most.

1. From a one-time grade to an ongoing accountability cycle

Under V1.3, companies set a target, received validation, and largely got on with things. V2.0 replaces that model with cyclical validation — targets must be reviewed, recalculated, and revalidated on a rolling basis, with annual progress checks built in.

Think of the old standard as a final exam: you studied, sat the test, received a grade. V2.0 is more like a coaching programme — there are regular check-ins, ongoing accountability, and the expectation of continuous improvement. The intent is to ensure targets stay aligned with evolving science rather than becoming a credential that gathers dust.

2. Two tiers of company — and the obligations differ

V2.0 introduces a formal distinction between company types. Category A covers large companies and medium-sized companies in high-income countries, and faces the strictest requirements. Category B — smaller companies and those in lower-income regions — gets proportionate flexibility. This is actually a meaningful step toward accessibility, but Category A obligations are substantial, and many of OneSeed's partners and their clients will fall into this category.

3. Scope 3 gets teeth

This is where the implications start to reach further than most people expect. Scope 3 emissions are those that occur upstream and downstream of a company’s own operations — in supply chains, logistics, customer use, and disposal. Under V2.0, Category A companies are required to set explicit Scope 3 targets covering any emissions category that represents 5% or more of their total footprint.

What this means in practice: if a large retailer, hotel chain, or e-commerce platform is your customer or procurement partner, their SBTi obligations now extend into your operations. Your environmental practices are no longer just your own business — they are part of their compliance story. The accountability is spreading downstream, and it will eventually reach every link in the chain.

4. "Ongoing Emissions Responsibility" — the formalization of nature-based action

Perhaps the most significant change for businesses thinking about where to start is the reframing of what was previously called Beyond Value Chain Mitigation (BVCM). V2.0 replaces this term with “Ongoing Emissions Responsibility” — and in doing so, elevates voluntary climate action from a marginal footnote to a formally recognised and eventually required component of the framework.

The timeline: voluntary but formally recognised until 2035, then progressively mandatory for Category A companies from 2035 onward, scaling toward 100% responsibility by each company’s net-zero target year.

Critically, SBTi’s own guidance explicitly affirms that nature-based solutions — reforestation, ecosystem restoration, verified tree-planting — and engineered carbon removals together form a complementary approach. This is not a greenwashing workaround. It is a recognised, science-backed mechanism with an explicit role in the new standard.

The Timeline, Simply Put

What This Means for Smaller Businesses

Many of OneSeed’s clients aren’t filing SBTi targets themselves — but their enterprise customers increasingly are. Strengthened Scope 3 requirements mean that your environmental credentials matter more to your partners, not less. Supplier questionnaires asking about sustainability practices, emissions data, and climate commitments are already appearing in sectors where SBTi adoption has been fastest: retail, hospitality, financial services, e-commerce.

The businesses best placed to answer those questions confidently are the ones who started building a documented record of climate action before they were required to. A verified history of nature-based action — however modest — is a foundation. Nothing is not.

Coming in Part Two

Now that the framework is clear, the more interesting question is how businesses are actually responding to it. Celia Francis, CEO of our newest planting partner Ponterra, put it directly: “What do the new SBTi rulings mean for businesses regarding the wider spread of obligations?”

In Part Two, we look at the behaviour — the real-world response: the three distinct ways businesses are reacting to V2.0, and what separates the ones getting ahead of it from the ones that will scramble to catch up.

Recommended Reading

•  SBTi Corporate Net-Zero Standard V2.0 — second consultation draft, November 2025

•  What’s Next for Net Zero — Science Based Targets Initiative blog

Read Part Two →