The SBTi Corporate Net-Zero Standard 2.0: What It Means for GCC Businesses

The Science Based Targets initiative (SBTi) is the global blueprint for corporate climate action, establishing the gold standard by which businesses align their greenhouse gas (GHG) reduction goals with the Paris Agreement to limit global warming to 1.5 degrees.

With the release of the SBTi Corporate Net-Zero Standard Version 2.0, the framework has undergone its most comprehensive overhaul to date. The structural focus has officially shifted from mere target-setting and pledge-making to credible, verifiable implementation.

While SBTi remains a voluntary framework, its relevance across the GCC is increasing. National initiatives such as the UAE Net Zero 2050 and Saudi Arabia’s Vision 2030 are driving greater focus on sustainability and emissions reduction.

For GCC businesses, particularly those operating in energy-intensive sectors such as energy, infrastructure, manufacturing and logistics, SBTi is becoming more than a sustainability commitment. It is increasingly linked to commercial opportunities, with accurate emissions data and credible reduction plans becoming important factors in securing contracts, meeting supplier requirements and remaining competitive in global markets.

Who Qualifies? The New Categorisation Rules

Version 2.0 introduces a rigid, dual-tiered classification system that dictates a company’s exact compliance requirements.

The Key Changes in Version 2.0 for GCC Businesses

1. Greater transparency around baseline years
Under the previous standard, businesses could select a historical baseline year when measuring emissions reductions.

Version 2.0 significantly tightens this approach.

Businesses are now expected to use the most recent year with a complete greenhouse gas inventory, ideally aligned with their financial reporting period. This guarantees that reduction targets reflect the current, operational reality of the business rather than a legacy snapshot.

2. Separation of Scope 1 and Scope 2 targets

Version 2.0 places greater emphasis on direct operational emissions and purchased energy, which is particularly relevant for energy-intensive sectors across the GCC.

Previously, companies had more flexibility in combining Scope 1 and Scope 2 targets. Under Version 2.0, businesses will need to address each separately, with greater focus on reducing operational emissions and improving how purchased energy is sourced and measured.

Renewable energy claims will also face greater scrutiny, with businesses needing stronger data and evidence that renewable electricity purchases are linked to where energy is consumed. This is particularly important in the GCC, where power generation remains heavily reliant on hydrocarbons and purchased electricity can represent a significant share of emissions footprints.

For industries such as oil and gas, petrochemicals and utilities, reducing emissions will require long-term investment in operational efficiency, electrification and lower-carbon technologies.

3. The 5% materiality rule for Scope 3 emissions

Scope 3 emissions remain one of the biggest challenges for businesses, particularly across the GCC where complex international supply chains and imported materials can make collecting reliable emissions data more difficult.

Previously, businesses only needed to set a target covering 67% of their total Scope 3 emissions.

Version 2.0 replaces this with a materiality-based approach. Category A organisations must now identify and report on any individual supply chain category representing more than 5% of total Scope 3 emissions, as well as any emissions-intensive activities.

This places greater emphasis on collecting primary data directly from suppliers rather than relying on estimates or industry averages. Independent verification also becomes significantly more important, ensuring reported emissions can withstand external scrutiny.

What Businesses Should Be Doing Now

Although implementation will happen over the next two years, businesses should begin preparing now.

Key milestones include:

• Now (2026): Businesses can still submit or update targets under Version 1.3.1 while it remains available.
• 1 February 2027: Validation under Version 2.0 officially opens.
• 1 February 2028: Version 1.3.1 is retired, and all new submissions and mandatory five-year reviews must comply with Version 2.0.

Businesses should use this transition period to improve emissions data quality, strengthen supplier engagement and identify any gaps in their current reporting processes.

Move Beyond Manual Spreadsheets with Achilles

As sustainability expectations continue to grow across the GCC, businesses need more than spreadsheets and self-reported emissions data. Whether meeting customer requirements, preparing for independent assurance or strengthening supplier risk management, accurate and audit-ready carbon data is becoming increasingly important.

While the SBTi determines the framework, defines the categories, and mandates verification, the SBTi does not perform the audits themselves. As an accredited independent third party with over 18 years of global leadership in greenhouse gas verification, Achilles provides the exact auditing and data assurance you need. Our carbon verification and reduction programmes are fully compliant with internationally recognised assurance standards and trusted by governments, certification bodies, and regulators alike. We do not just offer software; we provide the definitive, audit-ready stamp of assurance that future-proofs your organisation against compliance failure.