Setting SBTi Targets for the First Time Under V2.0

Companies approaching the Science Based Targets initiative (SBTi) for the first time face a decision that established target-holders do not have to make. With two standards now available during the transition period, a first-time company must choose which one to use. That choice is not a matter of preference. It is set almost entirely by timing.

This blog covers three things: how the timing decision works, why the SBTi recommends a particular path for most near-term submitters, and how the new commitment options apply to companies with no prior targets. For a broader introduction to the SBTi and how science-based targets work, see understanding the SBTi and setting climate targets.

SBTi V1.3.1 or V2.0: which version applies for first-time targets?

The rule is the same one that governs any company moving to V2.0: it depends on when the submission is due.

Three dates matter most when deciding on a commitment and first submission:

• 31 January 2027 - Last date to make a new commitment under the current NT or NZ options
• 1 February 2027 - Only the SBTi Commitment is available for new commitments; V2.0 target submissions also open from this date
• 31 January 2028 - V1.3.1 closes to new target submissions

This means the version a company uses is often decided by its own timeline rather than by a preference for one standard over the other. A company with a submission due in 2026 has only one option available. A company with no submission due until 2029 also has only one option, at the opposite end of the transition window. The real decision sits with companies whose timeline falls in the twelve-month window in between.

A worked example makes this concrete. A company with a commitment deadline of 1 September 2027 falls inside the overlap window for target submission. It can choose either V1.3.1 or V2.0 for its actual targets, due roughly 12 months later. 

Why the SBTi recommends starting with V1.3.1

For companies planning to set or renew targets before 2028, the SBTi's guidance is direct: submit under V1.3.1 as soon as possible, then move to V2.0 at the next cycle. This may seem counterintuitive, since it means starting with the version that will eventually be replaced.

The SBTi's recommendation is practical: it avoids delay now, without limiting the company's options later. V1.3.1 remains a fully credible and rigorous framework in its own right. Companies using it can still take advantage of flexibilities that V2.0 no longer permits, such as combined scope 1 and 2 targets. At the same time, choosing V1.3.1 now does not lock a company out of V2.0's innovations later. Once a company's first targets are validated, it can already draw on several V2.0 features, including the implementation hierarchy and the best-efforts approach to progress, regardless of which version those targets were set under.

A further consideration applies specifically to companies with no prior targets. Setting a first target is a substantial undertaking on its own: building an initial inventory, choosing methods, and going through validation for the first time. Doing that on a standard whose supporting detail, such as sector pathways and interpretation guidance, is still being finalised through the rest of 2026 and into 2027, adds avoidable uncertainty. Starting under the more established V1.3.1 lets a company build its inventory and target-setting capability on stable ground. That same capability then carries over to V2.0 at the next cycle, once the full suite of supporting resources is in place.

SBTi commitment options for first-time companies

Before setting formal targets, most companies first make a public commitment to do so. V2.0’s transition guidance changes how that commitment works for companies with no prior commitments or targets.

Until 31 January 2027, two commitment types remain available:

• A Near-Term (NT) Commitment, fulfillable under the Near-Term Criteria, CNZS V1.3.1, or V2.0.
• A Net-Zero (NZ) Commitment, fulfillable under CNZS V1.3.1 or V2.0, but not the Near-Term Criteria alone.

From 1 February 2027, both options are replaced by a single SBTi Commitment, fulfillable only under V2.0. The single SBTi Commitment reduces flexibility for companies that wait: a company committing today chooses between two fulfilment routes, while a company committing after 1 February 2027 has one route only, fixed to V2.0. This adds a further reason to consider the SBTi's V1.3.1 recommendation. Committing before 1 February 2027 preserves flexibility that the single commitment option removes.

One rule applies specifically here: publicly expressing intent to set targets under the new SBTi Commitment is available only to companies with no prior commitments or validated targets. It cannot be used by companies that already hold a commitment or targets under an earlier version.

Submitting under V1.3.1 now avoids delay. Moving to V2.0 at the next cycle then avoids the risk of building a first target on a standard whose supporting detail is still being finalised.

Setting your first SBTi target: what happens next

Once a company has confirmed its timing and made its commitment, the process of setting targets is the same ten-step journey that applies to any company using V2.0, from classifying as Category A or B through to the optional readiness assessment before submission.

That full process, covering company classification, the rolling base year, separate scope 1 and scope 2 targets, and the implementation hierarchy, is set out step by step in the guide to setting targets under the Corporate Net-Zero Standard V2.0. First-time companies planning to submit under V1.3.1 will find a broadly similar sequence, though with the specific target-setting rules that applied before V2.0.

How Zevero supports first-time SBTi target setting

Setting a first SBTi target starts with a complete, accurate emissions inventory, whichever standard is used. Zevero supports a full Scope 1, 2 and 3 inventory in line with the GHG Protocol, with category disaggregation that identifies which Scope 3 categories meet the 5% significance threshold. Once the inventory is in place, Zevero's target-setting support helps model which approach fits a company's asset profile, sector and emissions structure, useful groundwork given the three Scope 1 methods and wider set of Scope 3 approaches covered in this guide. Speak to the team to discuss target-setting methods for a company's specific scopes.

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