Evolving carbon standards: SBTi V2.0

The Science Based Targets initiative (SBTi) has published Version 2.0 of its Corporate Net-Zero Standard, strengthening the connection between climate targets and practical delivery.

For construction businesses, the direction is clear: credible commitments need implementation plans, measurable progress and closer engagement across the supply chain.

Delivering reductions

The updated standard introduces five-year target cycles, separate targets for direct emissions and purchased energy, and more flexible approaches to value-chain emissions. Requirements vary by company size and classification, with simplified provisions for smaller businesses. Transition planning and progress reporting place greater emphasis on how companies will deliver reductions.

Steel and cement are particularly relevant. Their production emissions form part of a contractor’s Scope 3 footprint – the indirect emissions associated with its value chain. V2.0 offers eligible approaches that include reducing material-related emissions, increasing the proportion of purchased materials that meet lower-carbon or net-zero-aligned criteria, and engaging suppliers to align with credible transition pathways. These approaches link purchasing decisions more directly to decarbonisation.

For contractors, the practical opportunity is to connect carbon targets with design, specifications and procurement: use materials efficiently, assess suitable lower-carbon alternatives, and work with suppliers to improve emissions data. Product quantities, supplier-specific information and Environmental Product Declarations can support better decisions. For steel and cement manufacturers, sector pathways provide a framework for reducing production emissions and demonstrating progress to customers.

Validation under V2.0 opens on 1 February 2027, and all new target submissions must use it from 1 February 2028. Existing validated targets remain subject to SBTi’s review and recalculation requirements, with transition timing depending on each company’s target and review dates.

SBTi Corporate Net-Zero Standard V2.0 and transition guidance.