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Executive Summary
The Net Zero Standard Version 2.0 Consultation Draft introduces significant updates to ensure stronger accountability, scientific alignment, and corporate engagement in achieving net-zero emissions. This revision expands beyond just target setting to include a full-cycle framework encompassing base-year performance assessment, implementation, progress tracking, and claims verification.
Key changes include:
Enhanced Accountability & Validation – Introduces a new validation model that not only assesses target ambition (ex-ante) but also requires structured progress evaluation (ex-post) and a process for setting new targets at the end of each cycle.
Company-Specific Requirements – Differentiates obligations based on company size and geography:
Category A: Large & medium-sized companies in high-income countries must meet all criteria.
Category B: Small & medium-sized companies in lower-income countries have increased flexibility.
Scope 3 Target Setting Overhaul – Moves away from a fixed minimum boundary (67% near-term, 90% long-term coverage) to prioritizing high-impact emissions sources, enabling more effective engagement with supply chains.
Stronger Incentives for Beyond Value Chain Mitigation (BVCM) – Companies are encouraged to address ongoing emissions beyond their operations, with formal recognition for contributions toward mitigation outside their value chains.
New Approaches for Residual Emissions – Proposes three methods for addressing residual emissions, including interim solutions during the transition period and long-term removal strategies.
Integration of Latest Climate Science – Updates emissions reduction benchmarks based on IPCC AR6 pathways, ensuring alignment with the most recent climate models and scientific findings.
Expanded Scope 2 Requirements – Companies must set both location-based and market-based/zero-carbon electricity targets, reinforcing transparency and renewable energy adoption.
Mandatory Transition Plans – Companies must publicly disclose their transition plans, aligning commitments with UN High-Level Expert Group (HLEG) recommendations.
Improved Progress Assessment & Claims Verification – Introduces a structured framework for measuring and reporting progress at the end of target cycles, with clearer guidelines on making substantiated climate claims.
New Assurance Requirements for Base-Year Data – Category A companies must obtain third-party assurance for their base-year GHG emissions inventory to enhance data reliability.
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Conclusion
The Version 2.0 Consultation Draft aims to move beyond ambition and into action by integrating accountability mechanisms, science-based updates, and tailored requirements to drive real progress. These changes reinforce the need for continuous improvement, transparency, and corporate responsibility in achieving net-zero emissions.
