On November 6, 2025, the Science Based Targets initiative (SBTi) released a revised draft (second draft) of the Corporate Net-Zero Standard Version 2 for a second round of public consultation. The consultation period will be open from November 6, 2025 to December 8, 2025. The second draft was developed in response to feedback received during the first public consultation in March 2025, as well as input from expert working groups.
The second draft provides enhanced clarity on SBTi’s position regarding Beyond Value Chain Mitigation (BVCM) and the use of removals across a company’s net-zero pathway. SBTi acknowledges that companies will continue to emit GHGs while transitioning to net zero, and that by taking responsibility for these ongoing emissions, companies can help limit temperature overshoot, reduce transition risks, and finance climate solutions. To support this, SBTi has introduced frameworks for both an optional responsibility phase through 2035 and a mandatory phase beginning in 2035.
Optional Recognition Program
SBTi is introducing an Optional Recognition Program for companies that take responsibility for ongoing emissions through 2035. Participating companies may choose to be publicly recognized for delivering supplementary mitigation outcomes and contributing climate finance.
During the validation process, companies must disclose whether they intend to take responsibility for their ongoing emissions during the upcoming near-term target period and whether they will enroll in the Optional Recognition Program. Companies that choose not to participate must provide an explanation.
Participating companies may qualify for one of two labels:
Recognized: Companies seeking “Recognized” status must take responsibility for at least 1% of ongoing emissions (Scopes 1, 2, and 3) within the near-term target period. Companies can do so through one of two approaches:
- Ex-post mitigation - Activities that deliver measurable and verifiable mitigation outcomes, expressed in metric tons of CO₂ equivalent, equivalent to at least 1% of ongoing emissions.
- Carbon pricing - Apply a carbon price to at least 1% of ongoing emissions during the near-term target period and allocate the financial budget to support eligible climate action categories. Companies using this approach must apply an average carbon price of at least USD 20 per tCO₂e.
Leadership: Companies seeking “Leadership” status must take responsibility for 100% of ongoing emissions (Scopes 1, 2, and 3) over the near-term target period. Under this approach, companies must apply a carbon price of at least USD 80 per tCO₂e to determine a financial budget, which shall be used to support activities that deliver ex-post mitigation outcomes equivalent to at least 40% of ongoing emissions.
Under both labels, verifiable mitigation outcomes are expressed in metric tons of CO₂ equivalent and may derive from:
- Activities that reduce emissions from sources outside the company’s value chain.
- Activities that conserve, protect, or enhance natural carbon sinks.
- Activities that capture and store carbon in verified storage pools.
Carbon credits are expected to serve as a primary mechanism for achieving mitigation outcomes, with the Standard outlining criteria to prevent double counting and ensure proper credit retirement.
Post-2035 Responsibility Requirement
Beginning in 2035, a mandatory minimum responsibility requirement will apply to all Category A companies.
Category A companies are defined as large enterprises (net turnover greater than USD/EUR 450 million or more than 1,000 employees) and medium-sized enterprises (balance sheet over USD/EUR 25 million or net turnover between USD/EUR 50–540 million, or 250–1,000 employees) operating in high-income countries.
The specific percentage of ongoing emissions (Scopes 1, 2, and 3) that companies must address has not yet been determined, but will increase linearly to 100% by 2050. SBTi is currently assessing appropriate and feasible responsibility levels.
Companies will be required to meet these obligations by supporting activities that deliver short-lived removals (e.g., capable of decadal storage) and long-lived removals (e.g., capable of storing carbon for centuries to millennia), consistent with IPCC storage classifications.
SBTi has not yet defined the required share of long-lived removals for the 2035–net-zero period, but this proportion will increase over time. As the requirement is expected to take effect in 2035, the criteria will be reviewed in Version 3 of the Standard to reflect the best available science at that time.
By the net-zero target year and beyond, all residual emissions (Scopes 1–3) must be neutralized using carbon dioxide removals. At that stage, 41% must come from long-duration removals, with the remaining 59% from short- or long-duration removals.
The post-2035 requirement is anticipated to drive substantial long-term demand in the Voluntary Carbon Market (VCM), particularly for removal-based credits.