{"id":8813,"date":"2026-10-14T13:54:51","date_gmt":"2026-10-14T12:54:51","guid":{"rendered":"https:\/\/www.goodenergy.co.uk\/business\/?p=8813"},"modified":"2026-10-14T15:33:40","modified_gmt":"2026-10-14T14:33:40","slug":"sbti-reporting-changes-explained","status":"publish","type":"post","link":"https:\/\/www.goodenergy.co.uk\/business\/insights\/sbti-reporting-changes-explained\/","title":{"rendered":"SBTi is changing: What businesses should know"},"content":{"rendered":"\n

The Science Based Targets initiative (SBTi)<\/a> is changing how businesses set carbon reduction targets \u2013 and how they show they\u2019re making progress. <\/p>\n\n\n\n

Its new Corporate Net-Zero Standard introduces tougher requirements around target setting, progress and renewable electricity. For large businesses in particular, that means getting much more detailed about their energy \u2013 including where their renewable power comes from and how closely it matches their electricity use hour by hour. <\/p>\n\n\n\n

And SBTi isn\u2019t changing in isolation. It\u2019s part of a wider shift towards more granular carbon reporting, with the Greenhouse Gas Protocol also reviewing how businesses report their Scope 2 emissions<\/a>. <\/p>\n\n\n\n

So, what\u2019s changing under SBTi V2.0, when will it affect your business and what should you be doing now? <\/p>\n\n\n\n

What is the SBTi, and what is changing in Version 2.0? <\/h2>\n\n\n\n

The Science Based Targets initiative (SBTi)<\/a> helps businesses set carbon reduction targets in line with climate science. <\/p>\n\n\n\n

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Businesses measure their greenhouse gas emissions, set targets for reducing them and submit those targets to SBTi for validation. Until now, businesses have typically set near-term targets looking five to ten years ahead, alongside a longer-term target to reach net zero by 2050 at the latest. <\/p>\n<\/div>\n\n\n\n

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SBTi published Version 2.0 of its Corporate Net-Zero Standard <\/a>in June 2026, changing how businesses set targets and demonstrate their progress. Here are four of the biggest changes: <\/p>\n\n\n\n

1. Businesses will fall into two categories <\/h2>\n\n\n\n

Businesses will be classed as Category A or Category B<\/strong>, with different requirements for each.  Broadly, Category A covers larger businesses, while Category B businesses have fewer requirements.

We’ve explained exactly how to work out which category your business falls into in the FAQs below<\/a>. <\/p>\n\n\n\n

2. Targets will work in five-year cycles <\/h2>\n\n\n\n

Currently, businesses can set near-term targets covering five to ten years. <\/p>\n\n\n\n

Under V2.0, businesses will instead work through five-year cycles. At the end of each cycle, they’ll assess their progress and set new targets for the next five years. Category A businesses will also need an independent third party to assure their progress assessment. <\/p>\n\n\n\n

3. Scope 3 targets are changing <\/h2>\n\n\n\n

Scope 3 covers indirect emissions across a business\u2019s value chain \u2013 for example, from suppliers, business travel or customers using its products.  <\/p>\n\n\n\n

Under SBTi V2.0, Category A businesses will still need to set targets to reduce these emissions, but there will be more focus on the biggest sources and the areas where they can have the greatest influence. Scope 3 targets will still be optional for Category B businesses. <\/p>\n\n\n\n

4. Electricity reporting is moving from annual to hourly matching <\/h2>\n\n\n\n

SBTi 2.0 puts far more emphasis on where and when the renewable electricity businesses use is generated.  <\/p>\n\n\n\n

Category A businesses will need to report their hourly electricity matching for any group of activities using 10 GWh or more electricity a year. They don\u2019t need to achieve 100% matching, they just need to measure it and report on it.  <\/p>\n\n\n\n

SBTi isn’t alone in moving towards more granular reporting. The GHG Protocol is also reviewing its Scope 2 rules, with proposals to more closely match electricity use with renewable generation by time and location. <\/p>\n\n\n\n

We’ve covered what those proposals could mean for businesses in our guide to the GHG Protocol Scope 2 reforms<\/strong><\/a>. <\/p>\n\n\n\n

When does SBTi V2.0 come into effect? <\/h2>\n\n\n\n
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Businesses can start setting targets under SBTi V2.0<\/a> from 1 February 2027<\/strong>. <\/p>\n\n\n\n

The existing standard <\/a>will remain available until 31 January 2028<\/strong>, giving businesses a year to transition. <\/p>\n\n\n\n

From 1 February 2028<\/strong>, businesses submitting new targets will need to use V2.0. <\/p>\n\n\n\n

If you already have validated SBTi targets, you don’t need to start again. They can continue through their current target cycle. <\/p>\n<\/div>\n<\/div>\n\n\n\n

What do I need to do to keep my business on target? <\/h2>\n\n\n\n

You don’t need to overhaul your carbon strategy overnight. But it is a good time to understand how the changes could affect you. Start by: <\/p>\n\n\n\n