SBTi V2.0: what it means for manufacturers and their suppliers

SBTi (Science Based Targets initiative) is an international initiative that verifies companies' climate targets. The aim is that the commitment “we will be carbon neutral” is not a marketing gesture, but a number derived from what climate science actually requires to keep warming below 1.5 °C.

The company submits its target, SBTi assesses it and either validates it or not. Today, thousands of companies worldwide have gone through this process, and SBTi validation has become the de facto standard that large buyers and investors are increasingly demanding from suppliers.

The key document for corporate targets is the Corporate Net-Zero Standard — and it has just received version 2.0.

The new version has 100 pages and is significantly more complex than its predecessor. However, that complexity is intentional — under V1.0 many companies failed to meet the targets despite sincere effort. V2.0 offers more pathways to the same result.

Five things worth noting:

1. End of “one-size-fits-all”. Scope 3 targets are now optional for smaller companies from low‑income countries. Others can choose between an absolute reduction target, a target for aligning suppliers/customers, or targets for specific high‑emission activities.

2. Long‑term targets are ending, five‑year cycles are arriving. Net‑zero is shifting from a distant promise to an ongoing performance commitment.

3. Scope 1 and 2 must be separated. For Scope 1, most sectors focus on moving away from fossil fuels; for Scope 2, targets are now based on physical, location‑based inventories.

4. Supplier data will need to be specific. Purchasing teams will need at least the emission intensity at the supplier level, ideally the full product carbon footprint (PCF).

5. The business case needs to be built now. The first cycle 2030–2035 requires a credible transition plan — and that will not succeed without support across the company. That means being able to quantify costs and benefits.

A new development is also collective action: where individual emission reductions are not feasible, joint activities within a sector or region can be recognized (e.g., investment in local renewable energy together with other manufacturers).

Two things that follow in practice: assurance will expand from emission inventories to verifying progress claims — and the role of procurement in the net-zero strategy will grow significantly.

More at https://www.esgtoday.com/what-manufacturers-and-suppliers-need-to-know-about-sbtis-v2-0-updates/?utm_source=rss&utm_medium=rss&utm_campaign=what-manufacturers-and-suppliers-need-to-know-about-sbtis-v2-0-updates

Source: ESG Today, guest post Bridget Wise (Secaro), 9 July 2026

Source: https://www.esgtoday.com/what-manufacturers-and-suppliers-need-to-know-about-sbtis-v2-0-updates/?utm_source=rss&utm_medium=rss&utm_campaign=what-manufacturers-and-suppliers-need-to-know-about-sbtis-v2-0-updates