Science-based targets (SBTi) explained: near-term, long-term and net-zero

A science-based target is an emissions reduction target that the Science Based Targets initiative (SBTi) has checked against what climate science says is needed. Companies use them to show that their plans are consistent with limiting warming, and many large customers now ask suppliers whether they have one.

This guide covers the rules as they stand in October 2026, during the move from Version 1.3.1 to Version 2.0 of the SBTi's Corporate Net-Zero Standard.

Which version applies

The SBTi published Version 2.0 of the Corporate Net-Zero Standard on 11 June 2026. Its timeline, as stated by the SBTi:

• Validation against Version 2.0 opens "in early 2027".
• "Companies will be able to submit targets to SBTi Services using either Version 1.3.1 or Version 2.0 from Q1 2027 until January 31, 2028", after which "Version 2.0 will become mandatory for all target submissions."
• Companies setting targets in 2026 are "strongly encouraged to prepare them for submission at the earliest opportunity using the Corporate Net-Zero Standard V1.3.1".

So if you are preparing a target now, Version 1.3.1 (April 2026) is the rulebook. The rest of this guide describes it, followed by what changes in Version 2.0.

The three kinds of target under Version 1.3.1

Near-term targets. Targets "shall cover a minimum of 5 years and a maximum of 10 years" (criterion C17). Scope 1 and 2 targets must be consistent with the decarbonisation needed to limit warming to 1.5°C.

Long-term targets. "Long-term targets shall have a target year no later than 2050" (C17). They require reducing emissions "to zero or a residual level consistent with reaching net-zero" (C14). The SBTi's summary page describes this as cutting emissions by "usually more than 90%" before 2050.

Net-zero. After the long-term target is met, "Companies shall remove carbon from the atmosphere and permanently store it" to counterbalance the remaining emissions (C28). Buying credits does not replace the reductions.

Coverage thresholds

These are the numbers people most often get wrong:

The 40% test means you need a Scope 3 screening across all categories before you can even tell whether a Scope 3 target is required. For most companies that buy goods, it is.

What changes in Version 2.0

The SBTi describes Version 2.0 as focused on implementation: it "recognizes that setting targets is the start—not the end—of the net-zero journey". According to the SBTi:

• "Companies set two or more near-term targets and can choose to set an overarching net-zero target."
• It "includes a scope 2 approach which strengthens transparency around hourly matching".
• It "includes accommodations for small and medium-sized enterprises, and companies in lower-income countries".
• It introduces "a voluntary recognition mechanism" for action on ongoing emissions, with "a longer-term requirement for larger companies to take progressive responsibility for these emissions".

Read the full Version 2.0 standard before planning a submission for 2027 or later; the details of each requirement are in the standard document, not in the summaries quoted here.

What you need before setting a target

1. A complete base-year inventory of Scopes 1 and 2, with the method and factors documented. See Scope 1, 2 and 3 emissions explained.
2. A Scope 3 screening of all 15 categories, to apply the 40% test and the 67% coverage rule. See the 15 Scope 3 categories.
3. Dual Scope 2 reporting if you buy renewable electricity, because targets and progress depend on the method. See location-based vs market-based.
4. A recalculation policy for acquisitions, divestments and methodology changes, so your base year stays comparable.

LCALens inventories keep the factors, sources and method version for every calculation, and lock the totals once approved, which is the evidence a validator will ask for. LCALens does not validate targets; only SBTi Services does.