The Science Based Targets initiative is rolling out a new version of its framework, and the headline change is flexibility. SBTi 2.0 moves away from forcing companies into rigid, one-size-fits-all categories and toward a structure that better fits where companies actually are. If you've looked at the current framework and felt it didn't quite fit your size or situation, this update is built to fix that.
What's actually changing
The most visible shift is the disappearance of the old SME track. In its place, SBTi 2.0 introduces two categories: Category A and Category B. Category B functions similarly to the old SME pathway, but with meaningfully more room to work with. Just as the previous SME track never required setting a formal Scope 3 target—only committing to tracking it over time—Category B continues this exact approach. That matters for smaller and mid-sized companies that are still building out their understanding of their own direct operations and aren't yet in a position to influence their supply chain the way a large enterprise can.
Category B also allows more flexibility in how Scope 1 and Scope 2 targets get structured. Under the current framework, these are bundled together. Under 2.0, a company can set them separately or combine them, depending on what best reflects its operations. This matters more than it might sound. A company operating out of leased office space may have little control over fugitive emissions tied to the building itself, but it can still buy renewable energy and pursue market-based electricity measures. Separating the targets lets that distinction show up in the numbers instead of getting flattened into one combined figure.
Category B comes down to influence. Just as the previous SME track never required an immediate formal Scope 3 target, Category B still lets smaller companies focus on getting their direct operations in order first. Large enterprise clients can mobilize their supply chains and push suppliers toward more sustainable practices, whereas smaller suppliers further down the chain typically don't have that same leverage. SBTi 2.0 maintains this approach, giving smaller companies room to build toward supply chain accountability over time rather than expecting them to solve it immediately.
Who qualifies for Category B
Qualification criteria are similar to the current SME definition but slightly loosened. The four reference points are a headcount under 250 employees, not operating in the FLAG sector (forestry, land, and agriculture), total assets under 250 million euros, and revenue or turnover under 50 million euros. The meaningful change is that a company no longer needs to satisfy all four criteria. Under 2.0, satisfying two of the three non-headcount criteria is enough, giving companies with a slightly larger headcount but lower revenue or asset levels a legitimate path into Category B rather than being automatically pushed into the corporate track. Note that all these figures are denominated in euros, since SBTi is based in Europe, so companies elsewhere will need to convert based on current exchange rates.
The timeline, and why it's not worth waiting for
SBTi announced 2.0 this year, with early access expected in the first half of 2027. The current version remains available and valid in the meantime, and it's expected to stay usable until roughly 2028, when 2.0 becomes the only option. Pricing for the new categories under 2.0 hasn't been published yet, and there's no indication it will be cheaper or otherwise more advantageous than submitting under the current framework.
That's worth sitting with for a moment. Companies that need to submit a target soon, whether because a client is requesting it or internal timelines require it, don't lose anything by moving forward under the current version. Submitting now doesn't put a company at a disadvantage once 2.0 becomes mandatory, and pricing for SBTi submissions has historically increased year over year. Waiting on the chance that 2.0 might turn out cheaper isn't a bet backed by much evidence right now.
What the submission process actually looks like
Regardless of version, the process starts with establishing an emissions baseline. For companies without an existing Scope 1 and Scope 2 footprint, that data collection process typically takes about a month with consistent effort, often structured as biweekly working sessions with whoever is managing the process. Category B companies need complete Scope 1 and Scope 2 data, along with a commitment to begin tracking Scope 3 over time. Companies pursuing the corporate track need a fully comprehensive footprint across all Scope 3 categories before submission.
Once the data is ready, registration comes next. For Category B, that includes providing proof of total emissions under 10,000 metric tons, which is part of what qualifies a company for that track. After registration, SBTi must formally accept the company before it can submit a target for validation. From there, validation itself typically takes anywhere from a few weeks to a couple of months. Corporate track submissions follow a more structured process: companies are paired with a dedicated validator and move through three defined stages, assessment, evaluation, and decision, over roughly 30 days that include scheduled check-ins along the way.
SBTi rarely rejects a submission outright. More often, they request additional information: more detail on planned reduction initiatives, clarification on emissions factor sourcing, or documentation showing how the data was calculated. This is a normal part of the validation process, not a sign that something went wrong, and companies working with outside support should expect and plan for a round or two of follow-up questions.
One base year decision worth planning ahead
Whatever track a company pursues, base year selection deserves real thought. Companies can choose their own base year, and that choice determines the baseline every future target is measured against. Many companies intentionally choose a year before or after 2019 through 2021, since pandemic-era activity levels don't reflect a realistic operating baseline. Picking an artificially low base year might look appealing on paper, but it sets a target against a number that doesn't represent the business accurately, which creates problems later rather than solving them now.
SBTi 2.0 represents a real shift toward flexibility, and it's a welcome one for companies that have felt boxed in by the current framework's rigidity. But the practical advice for right now hasn't changed: if a target needs to be set, there's no reason to wait on a framework that isn't fully available yet, doesn't have published pricing, and isn't likely to offer a meaningful advantage over acting today.
FAQ
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Category B replaces the previous SME track. It allows companies to commit to tracking Scope 3 emissions over time without setting a formal Scope 3 target immediately, and it offers more flexibility in how Scope 1 and Scope 2 targets are structured.
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The current framework remains valid through roughly 2028. SBTi 2.0 is expected to become available starting in early 2027, but companies aren't required to switch until the current version is phased out.
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Validation timelines vary, typically ranging from a few weeks to a couple of months. Corporate track submissions follow a more structured, roughly 30-day process across three defined stages.
