The SBTi Net-Zero Standard V2: What shippers need to know

Shippers face growing pressure to meet corporate sustainability goals, yet the regulatory landscape for emissions reduction is constantly shifting. For companies that choose to submit science-based targets, understanding what changed to the SBTi Corporate Net-Zero Standard Version 2.0 on June 11, 2026, is essential to building a data-driven strategy that supports credible emissions reduction and long-term sustainability commitments.

The recent updates require participating companies to set targets for any Scope 3 category representing 5% or more of total Scope 3 emissions. For shippers, this update carries significant implications. Companies must take direct, measurable action to bring Scope 3 transportation emissions into their sustainability strategies.

Key takeaways

• Comprehensive decarbonization: SBTi Corporate Net-Zero Standard Version 2.0 makes transportation emissions a key part of value chain decarbonization.
• Transportation emissions: Transportation emissions are a critical component of compliance and net-zero strategy.
• Data and reporting: Accurate data and transparent reporting on Scope 1 and 3 emissions are essential for meeting the updated requirements.
• Effective solutions: Solutions, like CleanMile, provide the tools to measure, manage, and reduce transportation emissions effectively.
• Ongoing emissions responsibility framework: The updated standard introduces a tiered recognition framework, Engaged, Advanced, and Leadership, rewarding measurable action on current and ongoing emissions to help companies build market visibility and stand out as climate leaders.

What is the SBTi Corporate Net-Zero Standard V2.0?

The Science Based Targets Initiative (SBTi) is a global standard-setter helping companies develop credible sustainability policies and processes.  Its frameworks allow organizations to benchmark their sustainability positioning and identify paths to improvement. To date, over 12,000 companies have developed science-backed targets through the use of SBTi’s resources.  

Version 2.0 of the SBTi Corporate Net-Zero Standard provides guidance for companies seeking to implement sustainability measures aligned with achieving net-zero emissions by 2050. Starting Jan. 1, 2028, companies that want to align with SBTi will be required to use the final Corporate Net-Zero Standard Version 2.0 for setting targets.

The standard introduces requirements across several areas:

Third-party assurance

Version 2.0 stipulates that companies obtain third-party assurance of the values used for setting their targets. The guidance calls for limited assurance covering Scope 1, 2, and 3 emissions, meaning that the company has strong standards and methodologies in place.

Scope 1 asset decarbonization

For Scope 1 emissions, Version 2.0 provides additional guidance on the asset decarbonization plan approach. Companies develop a carbon budget and set targets to reduce absolute emissions from assets through efficiency measures, fuel-switching, and asset replacement.

Scope 3 supplier energy alignment

Version 2.0 introduces a supplier energy alignment target for Scope 3 categories, encouraging companies with science-based targets to increase the share of low-carbon energy to 100% by 2050. This covers Scope 3 Category 4 (upstream transportation and distribution), Category 9 (downstream transportation and distribution), and Category 6 (business travel). Zero-tailpipe-emission vehicle (ZEV) adoption, including electric and hydrogen fuel cell vehicles, is also included.

What are environmental attribute credit guidelines (EACs)?

One closely watched development in the SBTi Corporate Net-Zero Standard Version 2.0 is how companies may use environmental attribute credits (EACs) as part of their decarbonization strategy. EACs generally represent one metric ton of carbon dioxide equivalent and can be purchased and retired separately from the physical alternative energy they represent.

For companies pursuing SBTi-aligned targets, EACs may help signal demand for lower-carbon energy in markets where physical alternatives are not yet commercially available at scale, such as book and claim or indirect book and claim. One of the primary ways to leverage EACs to reduce their scope 3 emissions is through book and claim. However, they are not a replacement for direct emissions reductions. Under the updated guidance, companies are expected to justify EAC use and report the emissions impact separately from their GHG inventory.

Key considerations for companies using EACs include:

• Issue and retire EACs within the same 24-month period in which the standard fuel was purchased.
• Purchase EACs close to where the corresponding activity occurs, signaling interest in local alternative energy production.
• Align with integrity principles including accuracy, verifiability, traceable chain of custody, additionality, and attribution integrity.
• Serve as a temporary measure; companies should transition toward direct physical emissions reductions over time.
• The emissions impact of EACs must be reported separately from the company's GHG inventory.
• Companies must also provide justification for using EACs instead of physical solutions, citing reasons such as commercial unavailability at scale or region-specific infrastructure constraints.

Key updates in the SBTi Corporate Net-Zero Standard V2.0

1. Scope 3 transportation is now explicitly in scope

This is the change with the most direct impact for shippers. Under Version 2.0, companies must set targets for any Scope 3 category that represents 5% or more of total Scope 3 emissions. Transportation categories, specifically Category 3.4 (upstream transportation and distribution) and Category 3.9 (downstream transportation and distribution), can no longer be excluded if they are material.

Previously, companies could meet Scope 3 target thresholds without addressing freight emissions. That flexibility no longer exists under Version 2.0. More companies will now be required to measure, disclose, and actively reduce transportation emissions as a core component of their net-zero strategy, not an afterthought.

2. Market-based measures hierarchy for Scope 3 decarbonization

SBTi Corporate Net-Zero Standard Version 2.0 formalizes a three-tier hierarchy for Scope 3 decarbonization:

1. First: Direct emissions reductions at the source
2. Second: In-value-chain interventions, such as direct book and claim
3. Third: Broader sector support, such as indirect book and claim and market-based measures

Market-based mechanisms are recognized, but only as complementary tools, not primary solutions. The new version enables shippers to utilize market based measures to reduce Scope 3 emissions. Companies must prioritize operational and supply chain changes before relying on certificates or credits. When market-based measures are used, companies must separately report physical emissions and emissions adjusted using market instruments. The use of market-based measures must also meet strict criteria to qualify for target achievement.

For shippers, this hierarchy creates a clear mandate: start with real, operational change, and credits and certificates can support the strategy.

3. New guardrails for bio-based fuels and feedstocks

The updates made to SBTi Corporate Net-Zero Standard Version 2.0 introduce stricter expectations for companies using or producing biofuels. Specifically, companies must:

• Provide data on land-related emissions and removals
• Show evidence that biomass feedstock production is not linked to deforestation
• Obtain a sustainability certification where available

These requirements address long-standing concerns around land-use change, particularly as it relates to food security and deforestation. Regulators in the European Union and California continue to refine their fuel decarbonization policies to minimize adverse land-use impacts. Companies using renewable diesel, sustainable aviation fuel (SAF), or other bio-based fuels will need stronger validation of their sustainability claims to remain compliant.

4. Greater emphasis on ongoing progress, not just target setting

The update also signals a shift in what SBTi expects from companies. Setting a target is no longer enough. Reporting must now include:

• Changes in physical emissions
• Actions taken and their outcomes

SBTi is moving from commitment-setting to performance accountability. Companies must demonstrate measurable progress tied to real-world emissions reductions. This creates a direct need for continuous emissions tracking, scenario planning, and transparent reporting, capabilities that help organizations course-correct in real time rather than waiting for annual reviews.

5. Introduction of the ongoing emissions responsibility framework

The last update in SBTi Corporate Net-Zero Standard Version 2.0 introduces a new recognition framework designed to reward companies for addressing current, ongoing emissions. Companies can earn recognition at distinct levels: Engaged, Advanced, and Leadership.

This framework creates market visibility and reputational incentives for climate leadership. It also opens a meaningful opportunity for companies to differentiate themselves based on what they are doing now, not just what they plan to do in the future. For shippers with ambitious sustainability roadmaps, this recognition structure provides a tangible way to demonstrate progress to customers, investors, and other stakeholders.

How CleanMile helps shippers stay ahead of SBTi Corporate Net-Zero Standards updates

Keeping pace with evolving sustainability standards like the SBTi Corporate Net-Zero Standard requires the right data, the right methodology, and a partner who understands the intersection of transportation operations and climate policy.

Breakthrough's team monitors regulatory and policy developments across federal, state, and international levels on an ongoing basis. This includes changes to SBTi standards, EPA emissions requirements, state clean fuel standards, and international frameworks such as the EU's Corporate Sustainability Reporting Directive (CSRD). Shippers who use CleanMile gain access to that intelligence, translated into practical guidance for their specific network.

CleanMile, Breakthrough's transportation emissions management platform, is built to address the specific demands Version 2.0 places on shippers:

• Lane-level emissions visibility: At the load level, emissions are accurately quantified across Scope 1 and Scope 3 categories, giving shippers the granular data required for credible target-setting and third-party assurance.
• Alignment with the SBTi implementation hierarchy: CleanMile identifies and prioritizes the highest-impact reduction opportunities, helping companies move through the hierarchy from direct reductions to in-value-chain interventions before turning to market-based measures.
• Transparent, audit-ready reporting: Physical emissions reductions and market-based actions are clearly differentiated, ensuring reporting meets SBTi's requirement to track these figures separately.
• Scenario planning and progress tracking: Companies can model decarbonization strategies over time, supporting the ongoing progress requirements that Version 2.0 now mandates, with CleanMile tracking performance at every step.
• Cost-effective emissions reduction: CleanMile clients see an average 6% reduction in emissions intensity in their first full year on the program, demonstrating that meaningful progress and operational efficiency can go hand in hand.

Carrier partnerships, mode conversion, route optimization, and alternative energy adoption are all levers CleanMile helps shippers evaluate and act on. According to Breakthrough's 2025 State of Transportation Report, 87% of shippers have set long-term sustainability-related transportation goals. The gap between commitment and execution, however, remains a challenge. CleanMile bridges that gap with data-driven insights and actionable strategies.

Stay ahead of SBTi standards with CleanMile

Version 2.0 of the SBTi Corporate Net-Zero Standard marks a significant step forward in corporate emissions reduction. By providing more detailed guidance on biofuels, EACs, and Scope 3 transportation requirements, the standard helps companies set more credible and effective sustainability targets.

For shippers, the message is clear: transportation emissions reduction is no longer optional. The companies that build the measurement and reporting infrastructure now will be better positioned to meet the Jan. 1, 2028, deadline and earn recognition under the new Ongoing Emissions Responsibility framework.

CleanMile provides the tools, methodology, and expertise to make that progress real. Learn more about CleanMile today.

Frequently asked questions about Corporate Net-Zero Standard V2

What is the SBTi Corporate Net-Zero Standard Version 2.0? 

The SBTi Corporate Net-Zero Standard Version 2.0 is a comprehensive framework from the Science Based Targets initiative that guides companies in setting and implementing credible, science-based net-zero targets. Released on June 11, 2026, it places greater emphasis on full value chain decarbonization, transparent progress reporting, and accountability for ongoing emissions. Companies must use Version 2.0 for target-setting starting Jan. 1, 2028.

Which Scope 3 transportation categories are affected by Version 2.0?

 Version 2.0 requires companies to set targets for any Scope 3 category representing 5% or more of total Scope 3 emissions. For most shippers, this means Category 3.4 (upstream transportation and distribution) and Category 3.9 (downstream transportation and distribution) are now explicitly in scope and cannot be excluded from net-zero target calculations.

How do Environmental Attribute Credits (EACs) work under Version 2.0?

EACs represent one metric ton of carbon dioxide equivalent. Companies can purchase and retire EACs to signal demand for alternative energies in markets where physical alternatives are limited. However, EACs must meet strict integrity criteria, be issued and retired within a 24-month window, and be reported separately from the company's GHG inventory. EACs are a temporary measure; companies are expected to transition toward direct physical emissions reductions over time.

What is the three-tier hierarchy for Scope 3 decarbonization?

SBTi Version 2.0 establishes a structured approach: first, direct emissions reductions at the source; second, in-value-chain interventions such as direct book and claim; third, broader sector support such as indirect book and claim and market-based measures. Market-based tools are permitted, but only as a complement to operational changes, not a replacement for them.

What is the Ongoing Emissions Responsibility framework?

The Ongoing Emissions Responsibility framework is a new recognition structure introduced in Version 2.0. Companies can earn recognition at the Engaged, Advanced, or Leadership level based on how they address their current, ongoing emissions. The framework creates market visibility and reputational incentives for companies that take action now rather than waiting to meet long-term commitments.