The Science Based Targets initiative (SBTi) has published a draft of its new v2 standard, with the final version expected to be completed in early 2026. The reform clarifies the rules of the game for companies' climate targets and reinforces the transition towards more transparent, comparable, and company-specific climate work.

The overall picture is clear: the aim of the update is to improve the transparency and consistency of climate targets and ensure that they are better scaled to company-specific needs. The reform also clarifies the formulation of targets and provides more precise guidance on the treatment of value chain emissions.

What does the update mean for companies?

A clearer and more balanced model based on company size

V2 introduces a classification system in which the level of requirements is proportionate to the size and operating environment of the company. This improves comparability and makes the targets more realistic – without lowering the level of ambition.

More specific reduction requirements for Scope 1 and 2 emissions

The draft requires that Scope 1 and Scope 2 targets are set separately in the future, which increases transparency and clarifies the division of responsibility between own operations and electricity use. Targets for electricity consumption must be defined using either a location-based method or, alternatively, a market-based approach or certified emission-free electricity. In addition, companies can choose either an absolute reduction model or an industry-specific path for their Scope 1 reduction targets, which allows for better alignment with the company’s own emissions profile.

A more practical approach only for the most significant emissions in the value chain (Scope 3)

Scope 3 emissions will play a more central role in the update. Especially large and medium-sized companies are expected to set targets for significant emission sources in the value chain. According to the draft, Scope 3 targets can be set as absolute CO₂ emission reduction targets, but compared to before, there’s more flexibility, and other options are also available. Companies can use multiple target formats for Scope 3 emissions and utilize, for example, intensity-based models or industry-specific reduction pathways, which allows for more flexible and business-friendly target setting, especially for companies whose Scope 3 emissions are decentralized or dependent on their supplier network.

How does the update affect current climate targets?

Companies can continue to follow their current SBTi-approved targets, but in practice the update means that:

  • Short-term targets will continue as normal until the end of their target period. When the next round of targets is set, they will be set in accordance with the new v2 standard.
  • Long-term/net-zero targets will remain valid until the target year (e.g., 2040 or 2050). They do not need to be reopened or updated immediately upon the release of v2, but the SBTi will require regular review in the future — in practice, it is a good idea for companies to assess how up-to-date their targets are, for example every five years.
  • Companies do not need to make rapid changes; the transition to the new standard will happen naturally as the current target periods end and new targets are set. The update does not reset previous work — it provides an opportunity to strengthen the credibility and marketability of the targets.

What if setting climate targets is now on the table?

Companies do not need to wait for the final publication of the v2 standard. Preparation can and should begin now. There is already a strong understanding of the reform guidelines, and up-to-date emissions calculations that meet the SBTi criteria create a stable foundation for future target setting. When this work has been done in advance, the implementation of the new v2 requirements will be smooth as soon as the standard is finalized in early 2026.

Getting started early has also clear business benefits: it strengthens stakeholder confidence, facilitates investment and risk management decisions, and allows the company to build a transition plan in a controlled manner. Setting climate targets is a strategic decision — and a well-prepared foundation ensures that the company is ready to act as soon as the new standard is published.

Nordic Impact’s view – clarity, consistency, and better decisions

SBTi v2 brings welcome clarity to the market. For companies, it provides a stronger foundation for climate work, better conditions for strategic decision-making, and a more transparent way to communicate goals to customers, investors, and other stakeholders.

We at Nordic Impact help companies ensure that both their current and future climate goals are aligned with the v2 standard, and that they support business growth and competitiveness.

Nordic Impact provides comprehensive support to its customers: from emissions calculations to target setting, scenarios, transition plans, and practical roadmaps.

Get in touch

Would you like to discuss what SBTi v2 means for your company?
We are happy to help you assess your current situation and build a strong target path that meets future requirements.

Nordic Impact experts Laura Savikoski and Maija Saijonmaa will advise you on setting and preparing your climate targets.

Contact us — we will quickly get you started and ensure that your work progresses smoothly in accordance with the new v2 standard.