Science Based Targets: From corporate climate ambition to implementation

What do businesses need to know about the new Science Based Targets framework?

Most businesses with sustainability ambitions will be familiar with the Science Based Targets Initiative (SBTI). Since 2015, the SBTI has helped organisations develop emissions reduction targets aligned with climate science and the global objective of limiting warming to 1.5°C. Today, more than 11,000 companies worldwide have adopted SBTI-validated targets.

In June 2026, the SBTI published Corporate Net-Zero Standard Version 2.0, its most significant update to date. The revised Standard reflects almost a decade of practical experience and is intended to help businesses move beyond climate commitments to focus on implementation, delivery and measurable progress.

The new Standard recognises that setting a target is only the first step. Many organisations face genuine challenges in decarbonising operations and supply chains, including technological limitations, long investment cycles and dependence on suppliers and customers outside their direct control. Version 2.0 seeks to address those challenges.

What’s changed in Version 2.0?

The updated Standard introduces a number of important developments.

A stronger focus on implementation

Perhaps the most notable change is the shift from target-setting alone towards implementation and transition planning.

Companies are now expected not only to set science-based targets but also to demonstrate how those targets will be achieved. The Standard places greater emphasis on governance, capital allocation, procurement decisions, supplier engagement and operational planning. Transition plans become a central part of the process rather than a supplementary exercise.

For larger organisations, disclosure of transition plans is expected as part of the validation and reporting process.

A “best efforts” approach

Version 2.0 acknowledges that companies cannot always control every factor affecting emissions reductions, particularly in relation to Scope 3 emissions.

Rather than imposing a purely compliance-based approach, the Standard adopts a “best efforts” framework. Businesses are expected to use all reasonably available levers to reduce emissions, identify barriers to implementation and report transparently on those challenges and their response.

This reflects a growing recognition that credible progress and transparency are as important as achieving every interim milestone exactly as planned.

More tailored target-setting

The previous framework relied heavily on standardised emissions reduction pathways. Version 2.0 introduces greater flexibility, allowing businesses to choose target-setting approaches that better reflect their circumstances, sector, geography and operational realities. These include: absolute emissions reduction targets; emissions intensity targets; asset-transition approaches for businesses with long-lived infrastructure and capital investments; supplier and customer alignment targets; and category-specific Scope 3 targets.

The intention is to provide more practical routes to decarbonisation while preserving alignment with net-zero pathways.

Enhanced reporting and continuous improvement

Companies are expected to report annually, assess progress regularly, identify obstacles and update targets over successive cycles. This continuous improvement approach is designed to ensure that organisations remain aligned with evolving science, business realities and net-zero pathways.

The role of carbon credits

One of the most closely watched aspects of the review process was the treatment of carbon credits. The SBTI has maintained the principle that emissions reductions within an organisation’s operations and value chain must remain the priority. However, Version 2.0 introduces a voluntary recognition programme for companies that support broader climate mitigation initiatives through high-integrity carbon credits and climate finance mechanisms. Measures are positioned as a complement to, rather than a substitute for, direct decarbonisation.

What does this mean for nature and biodiversity objectives?

The updated climate standard should also be viewed in the context of the broader science-based sustainability agenda. There’s increasing recognition today that climate change, biodiversity loss and ecosystem degradation are fundamentally interconnected challenges. Businesses are expected to understand and manage not only their greenhouse gas emissions but also their wider environmental impacts across land, freshwater, oceans and biodiversity. The enhanced emphasis in Version 2.0 on value-chain engagement, risk management, governance and transition planning creates a stronger foundation for organisations seeking to integrate climate and nature strategies.

As regulatory expectations, investor scrutiny and stakeholder expectations continue to develop, organisations that take an integrated approach to climate and nature issues are likely to be better positioned to manage risk and demonstrate long-term resilience.

Science Based Targets and sustainability: How we can help

Walker Morris’ Environment Team is a multi-disciplinary group of specialist lawyers experienced in all aspects of the sustainability agenda. We work with businesses at every stage of their sustainability journey to create, implement and deliver effective environmental strategies.

In particular, we can:

• support carbon footprinting and lifecycle assessment exercises
• advise on sustainability target-setting and implementation strategies
• review transition plans and climate governance arrangements
• assist with sustainability due diligence, policy and supply-chain reviews
• advise on sustainability-related regulatory developments
• support mandatory and voluntary sustainability reporting
• provide tailored ESG and sustainability training
• assist with green finance and sustainable investment initiatives
• advise on nature-related risks and biodiversity obligations
• support low-carbon and environmental projects
• help manage sustainability-related investigations, disputes and enforcement issues.

The Environment Team can also assist businesses with environmental permitting, planning, regulatory compliance and wider environmental risk management.

Please contact Ben Sheppard, Rachel Turnbull or any member of the Environment Team for tailored advice, assistance or training on SBTI targets, climate transition planning, nature-related sustainability objectives or environmental law generally.