SBTi Corporate Net-Zero Standard V2.0: what changed and why it matters

Who is affected: Category A and the CSRD alignment

V2.0 distinguishes between Category A and Category B companies. Category A companies must fulfil all SBTi requirements; Category B companies may do so voluntarily. The threshold for Category A is explicitly aligned with CSRD reporting requirements.

Category A obligations include reporting emissions across all three scopes, setting near-term reduction targets within a five-year cycle from the base year, and committing to net-zero by 2050 at the latest. Net-zero goals are by default to be set at the highest parent company level, with the highest management accountable for achieving them (C1.1., C3.2.). Base years must reflect the most recent year with complete and comprehensive data (C4.1., C4.2.).

Transportation as an emission-intensive activity

Transportation – Scope 3.4 (upstream transportation and distribution) and Scope 3.9 (downstream transportation and distribution) – is classified as an emission-intensive activity. It requires quantification and reporting if it generates 5% or more of total Scope 3 emissions, even if that threshold is reached across both sub-categories combined (C6.3., Table A.1.). Target-setting is required where an individual sub-category meets the 5% threshold; where the threshold is only met in combination, target-setting is recommended but not required.

The Standard specifies that reporting for transportation must cover all emissions from well-to-wheel and well-to-wake (C5.6.). Market instruments such as Book & Claim are to be reported separately from the physical GHG inventory and must adhere to the defined integrity criteria (C5.4.).

Target setting for Scope 3.4 and 3.9

Scope 3 near-term targets must include all sub-categories that account for 5% or more of total Scope 3 (C14.1.). Non-excluded Scope 3 emissions must have targets consistent with a net-zero pathway (C15.1., C15.2.).

For Scope 3.4 and 3.9 specifically, three forms of near-term target are permitted (C15.3.):

• Emission intensity: a specific emission intensity goal expressed as gCO₂e per tonne-kilometre (C15.3.a.).

• Volume alignment: the share of procured transport activity that is lower carbon, for example Low Emission Transport Services (C15.3.b.).

• Supplier alignment: the share of contractors who are net-zero aligned or on a transition pathway (C15.3.c.).

It is recommended to set separate targets for transportation across Scope 3.4 and 3.9 combined should each individual scope not cross the threshold, as transportation is considered an emission-intensive activity  (R15.3.).

Scope 3.9 emissions where a company does not hold direct means – such as contracts – to influence those emissions may be excluded from near-term targets (C14.2.e.). Long-term goals must cover 100% of all Scope 3 emissions regardless of near-term exclusions and must be net-zero aligned (C16.1., C16.2.).

Target implementation: the three-level hierarchy

Actions to achieve emission reductions are to be taken in a defined order (C21.):

• Activity level: where technically and commercially viable, actions should address specific activities first. Example from shipzero: a specific shuttle transport from a production site to a depot, where contractors on that lane may be incentivized to deploy battery-electric vehicles (C21.1.).

• Activity pool level: where emissions arise in an activity pool such as a transport network and cannot be traced back to individual activities, actions may be taken at pool level. Mass balance and direct Book & Claim can serve as the chain of custody here. (C21.2.) Example from shipzero: HVO usage is often not traceable back to individual vehicles and may be accounted based on total consumption within the transport network.

• Sector level: if actions cannot be taken at activity or pool level, sector-level actions become viable. Indirect Book & Claim can serve as the chain of custody here. (C21.3.) Example from shipzero: buying biofuel attributes on voluntary marketplaces finances an energy transition in the transportation sector at large.

Pool- or sector-level actions should complement and not substitute actions taken at activity level. Where actions are taken at pool level, the pool must be defined by geographical and/or operational boundaries (C22.1.).

Integrity criteria are in place to determine which market instruments are eligible for target achievement. Those criteria are largely aligned with constraints and requirements set by the MBM framework.

FAQ

Q1: What does SBTi V2.0 require for transport emissions reporting?

SBTi Corporate Net-Zero Standard V2.0 requires that transportation emissions – Scope 3.4 (upstream) and Scope 3.9 (downstream) – are reported on a well-to-wheel basis for road, rail, and inland waterway, and on a well-to-wake basis for ocean and air freight. Partial emission factors are no longer sufficient. The GHG emission inventory itself must be audited, and companies using market instruments must additionally maintain auditable documentation and enable third-party verification. Category A companies – those aligned with CSRD reporting thresholds – must fulfill all requirements.

Q2: When is Scope 3.4 and 3.9 reporting mandatory under SBTi V2.0?

Reporting and target-setting for Scope 3.4 (upstream transportation) and Scope 3.9 (downstream transportation) are mandatory if either sub-category individually exceeds 5% of total Scope 3 emissions. If both sub-categories are individually below 5% but transportation as a combined activity exceeds 5% of total Scope 3, reporting is still required – though target-setting in that case is recommended rather than mandatory. Target-setting is required where an individual sub-category meets the 5% threshold on its own.

Q3: Is Book & Claim accepted under SBTi V2.0 for target achievement?

Yes. SBTi Corporate Net-Zero Standard V2.0 explicitly names Book & Claim as a permissible chain of custody for market instruments used in target achievement. Mass balance and Book & Claim are both recognized at pool level – where emissions cannot be traced to individual transport activities – and indirect Book & Claim is recognized at sector level. Market instruments must meet defined integrity criteria aligned with the Smart Freight Centre's MBM Framework, run through independent registries, and be reported separately from the physical GHG inventory. Internal tracking systems without third-party audit capability do not meet these requirements.

Q4: What is the difference between activity-level, pool-level, and sector-level Book & Claim under SBTi V2.0?

SBTi V2.0 defines a three-level hierarchy for emission reduction actions. At activity level, reductions target specific transport activities – for example, deploying battery-electric vehicles on a defined shuttle lane. At pool level, where emissions cannot be traced to individual activities, mass balance or direct Book & Claim serves as the chain of custody – for example, accounting for HVO usage across a transport network where individual vehicle traceability is not feasible. At sector level, indirect Book & Claim – such as purchasing biofuel attributes on voluntary marketplaces – finances the energy transition across the freight sector at large. Pool- and sector-level actions should complement, not substitute, activity-level actions.

Q5: Does SBTi V2.0 apply to companies subject to CSRD reporting?

Yes – SBTi V2.0 explicitly aligns its Category A threshold with CSRD reporting requirements. Category A companies must fulfil all SBTi obligations: reporting emissions across Scope 1, 2, and 3; setting near-term reduction targets within a five-year cycle; and committing to net-zero by 2050 at the latest. For companies within CSRD scope, SBTi V2.0 compliance and ESRS E1 disclosure obligations are therefore closely interlinked – the same audited, methodology-compliant emissions data foundation is required by both frameworks.