Your SBTi v2 Readiness Checklist for 2027 Submissions

Understanding the New Standard: An SBTi v2 Readiness Checklist Primer

The Science Based Targets initiative (SBTi) is evolving. The upcoming Corporate Net-Zero Standard V2.0, set to become the mandatory framework for submissions from 2027, represents a significant step-change in corporate climate ambition. For sustainability leaders, the time to prepare is now. This article provides a practical sbti v2 readiness checklist to help you navigate the changes, understand the new requirements, and build a credible pathway to validation. The transition from V1 to V2 is not just an update, it is a call for deeper, more robust decarbonisation strategies, especially within the value chain.

At its core, the V2.0 standard aims to increase ambition and standardise approaches to ensure corporate targets are genuinely aligned with a 1.5°C future. The key themes driving this update include:

• Greater Scope 3 Coverage: A significant increase in the required boundary for value chain emissions targets.
• Stricter Decarbonisation Pathways: A move to align all targets with 1.5°C scenarios, removing previous flexibilities.
• Emphasis on Implementation: A new focus on credible transition plans, governance, and transparent progress reporting.
• Clearer Rules on Residual Emissions: Tighter definitions for neutralising unavoidable emissions at the long-term target date.

Navigating these shifts requires a proactive and structured approach. An effective sbti v2 readiness checklist is the first step towards ensuring your organisation is not just compliant, but leading the way.

Key Changes in SBTi v2: A Detailed Breakdown

The draft proposals for the Corporate Net-Zero Standard V2.0 indicate several critical changes that will affect how companies set, manage, and report on their climate targets. Understanding these details is fundamental to building your preparation strategy.

Expanded Scope 3 Target Boundaries

Perhaps the most impactful change for many organisations is the expansion of Scope 3 target requirements. Previously, companies setting near-term targets needed to cover at least 67% of their total Scope 3 emissions. Under V2.0, this threshold is expected to rise to 95% for most companies. This shift effectively eliminates the ability to exclude more difficult-to-measure categories, placing immense pressure on organisations to gain full visibility and influence over their entire value chain. Your sbti v2 readiness checklist must prioritise a deep dive into your Scope 3 inventory.

Recalibrating Near-Term and Long-Term Ambition

V2.0 tightens the requirements for both near-term (5-10 years) and long-term (by 2050 at the latest) targets. The standard will mandate deeper absolute emissions cuts, aligning all companies with a 1.5°C trajectory. The use of intensity targets will likely be further restricted, pushing companies to demonstrate a genuine decoupling of business growth from emissions. This means that existing targets may need to be revised to meet the heightened level of ambition, a critical item for your action plan.

A Clearer Stance on Neutralisation and Net-Zero Claims

The new standard provides much clearer definitions for achieving “net-zero”. It will require companies to neutralise any residual emissions at their long-term target date exclusively through permanent carbon removals. This marks a significant move away from the use of lower-quality offsets to compensate for ongoing emissions. Companies will need a credible strategy for addressing the small fraction of emissions that are technologically or financially impossible to eliminate from their operations and value chain.

Focus on Governance and Credible Action

It is no longer enough to simply set a target. The SBTi is placing a stronger emphasis on accountability and implementation. V2.0 is expected to introduce requirements for companies to publicly report on their climate transition plan. This plan must demonstrate how they are actively working to achieve their targets through concrete actions, such as operational improvements, procurement decisions, supplier engagement programmes, and product innovation. This brings governance and strategy to the forefront of your sbti v2 readiness checklist.

Your Action Plan: How to Prepare Your Organisation Now

With these changes on the horizon, proactive preparation is essential. Waiting until the standard is finalised in 2027 will leave you scrambling. Use the following steps as a practical guide to get ahead.

1. Conduct a Comprehensive GHG Inventory Gap Analysis: Start by reviewing your current Scope 1, 2, and especially Scope 3 inventories against the likely 95% coverage requirement. Identify which Scope 3 categories are currently estimated or excluded and create a plan to improve data quality. This foundational step is the most important part of your sbti v2 readiness checklist.
2. Model New Decarbonisation Scenarios: Your existing reduction pathway may no longer be sufficient. Use the draft V2.0 criteria to model what a compliant target would look like for your company. This analysis will reveal the scale of the challenge and highlight where your biggest decarbonisation levers are located.
3. Scale Up Your Supplier Engagement Programme: With Scope 3 taking centre stage, effective supplier engagement becomes non-negotiable. It is time to move beyond simply surveying your top suppliers. You need a scalable system to collect primary data, track performance, and collaborate on reduction initiatives across the long tail of your supply chain.
4. Align Internal Governance and Strategy: Ensure your climate targets are deeply integrated into your corporate strategy, risk management frameworks, and governance processes. The board and executive team must be aligned and accountable for resourcing and delivering the climate transition plan.
5. Develop a Long-Term Neutralisation Strategy: Begin researching and understanding the market for high-quality, permanent carbon removals. While neutralisation applies to your long-term target, a credible and financially viable strategy needs to be developed now to satisfy stakeholders and the SBTi.

Why Supplier Data is the Core of Your SBTi v2 Readiness Checklist

The heightened focus on 95% Scope 3 coverage means that generic, spend-based emissions estimates are no longer sufficient. Auditors, investors, and the SBTi itself will demand more granular, credible, and verifiable data from your value chain. The success of your entire SBTi submission hinges on the quality of this data.

Under SBTi v2.0, your Scope 3 target is only as credible as the data that underpins it. Moving from broad estimates to verifiable, supplier-specific data is the most critical step any organisation can take to prepare.

The old way of managing this process, relying on cumbersome spreadsheets and periodic, manual surveys, is inefficient, prone to error, and simply cannot scale to meet the new demands. It leaves sustainability teams drowning in admin instead of focusing on driving real reductions. This is where a centralised platform for supplier data becomes essential. Having a single source of truth for verified supplier emissions allows you to move from estimation to action. With access to verified data from over 2 million organisations and tools to streamline primary data collection, Ditch Carbon helps you build the robust data foundation required for a successful V2.0 submission. Completing your sbti v2 readiness checklist is far simpler when you have trusted data at your fingertips.

The Corporate Net-Zero Standard V2.0 is a positive and necessary evolution in corporate climate action. It raises the bar for everyone, ensuring that net-zero commitments are backed by credible, science-based action. By using this sbti v2 readiness checklist to prepare, your organisation can not only meet the new requirements but also build a more resilient and impactful climate strategy for the years to come.