Explainer
The Science Based Targets initiative sets the rules for credible corporate climate targets. Here is how it works, what changes with the Corporate Net Zero Standard V2, what validation costs and whether it is right for your business.
By Christopher Fagan, Managing Partner, PEF Consulting Partners
The Science Based Targets initiative sets standards for corporate greenhouse gas reduction targets in line with climate science. Its subsidiary, SBTi Services, validates company targets against those standards. A validated target tells customers, investors and lenders that your plan follows a recognised method rather than a number chosen for convenience.
| Version | Status |
|---|---|
| Corporate Net Zero Standard V1.3.1 | The framework used for validation during 2026; the SBTi says it can be used until 31 January 2028 |
| Corporate Net Zero Standard V2.0 | Final, published 11 June 2026; submissions open on 1 February 2027 and it becomes mandatory from 1 February 2028 |
Companies in land intensive sectors, or whose forest, land and agriculture emissions are more than 20% of the total, must set separate FLAG targets. The 2026 FLAG guidance also requires a no deforestation commitment within two years of submission and no later than 31 December 2030.
You develop targets using the SBTi criteria and tools, submit them, and go through a technical review, a validation call and a decision, with corporate results in about 40 business days. From January 2026 the fees are US$13,000 to US$26,000 for near term validation and US$11,000 to US$18,000 for net zero, with an SME route from US$1,250 to US$2,000. UK companies are invoiced in pounds plus VAT.
If large customers or investors are asking for validated targets, yes. If not, a robust footprint and a credible reduction plan may be the better first step, with validation once your data is ready. Either way, do not commit publicly to a target you cannot yet measure.
Related reading: scope 1, 2 and 3 emissions explained, carbon neutral vs net zero, transition plans you can deliver, the carbon reduction plan template.
The Science Based Targets initiative: the body that sets standards for corporate climate targets aligned with climate science and, through SBTi Services, validates companies’ targets.
An emissions reduction target consistent with what the science says is needed to limit warming to 1.5°C, set and validated under the SBTi criteria.
About 40 business days for corporate results once a complete submission is accepted, plus the time it takes you to build the footprint and the targets.
The rules for forest, land and agriculture emissions. Companies in those sectors, or with FLAG emissions above 20% of their total, must set separate FLAG targets and commit to no deforestation.
If customers are asking for science based targets, start with the footprint. We can help you get the data and the targets to a standard that will pass validation.