The Science Based Targets initiative published the first revision of its Corporate Net-Zero Standard in 2024, with updated guidance continuing to emerge in 2025. For UK companies that have already submitted targets — or are considering doing so — the revision changes some important assumptions. Here is a plain-English guide to what has changed and what it means in practice.
Why the standard was revised
The original Corporate Net-Zero Standard launched in 2021 set the framework for science-based near-term and long-term targets, but it was always intended to evolve as the science and market practice developed. The revision addresses three areas where the original standard was creating confusion or inconsistency: Scope 3 target boundaries, the treatment of land use and forest sectors (FLAG), and the use of carbon credits in long-term net-zero claims.
The Scope 3 materiality threshold
The 5% materiality rule — which exempts individual Scope 3 categories below 5% of total emissions from the target boundary — remains in place, but the revised standard tightens how companies must demonstrate materiality. A category cannot simply be excluded because data is difficult to obtain. If a category is likely to be material based on sector norms, companies are expected to include it or provide a documented justification for exclusion.
For UK companies in real estate, logistics, food and professional services, this matters. Categories 1 (purchased goods and services), 11 (use of sold products) and 15 (investments) account for the majority of Scope 3 in many sectors and are routinely underestimated in first-year inventories. Companies submitting targets based on incomplete Scope 3 inventories face the risk of having to restate their baseline when data quality improves.
FLAG targets: now mandatory for eligible sectors
The Forest, Land and Agriculture (FLAG) guidance introduces a separate target-setting methodology for companies with significant land-related emissions or removals in their value chain. Sectors including food and beverage, agriculture, forestry and bioenergy are now required to set FLAG targets alongside their non-FLAG science-based targets. This is not optional for eligible sectors.
For most UK commercial property and infrastructure companies this is not directly relevant, but it is worth understanding if your supply chain or purchased goods and services include significant agricultural or food processing exposure.
Carbon credits and the long-term net-zero claim
This is the area with the most practical implications. The revised standard clarifies that carbon credits — including high-quality removals — can only be used to neutralise residual emissions that remain after all technically and economically feasible abatement has been applied. Credits cannot be used to offset emissions that could be reduced through available measures.
This is a tightening, not a relaxation, of the original position. Companies that planned to rely on offsets to bridge a large gap between their 2030 near-term target trajectory and their 2050 net-zero position should revisit those plans.
What this means for UK companies currently in the SBTi pipeline
If you have submitted targets that are under validation, or are preparing a submission, there are three things to do before proceeding:
First, review your Scope 3 inventory against the revised materiality guidance. If categories have been excluded on data-availability grounds rather than genuine immateriality, address the inventory gaps before your targets are validated.
Second, if you are in an eligible FLAG sector, check whether you need to develop a parallel FLAG target. Submitting non-FLAG targets alone will not constitute full Standard compliance for these sectors.
Third, revisit your long-term net-zero plan to confirm that the residual emissions you intend to neutralise with credits represent genuinely irreducible emissions, not a shortfall in your abatement programme. Investors and lenders are increasingly asking this question directly.
The bottom line
The SBTi Corporate Net-Zero Standard remains the most credible voluntary framework for corporate climate commitments in the UK market. The revision strengthens it. Companies that set targets carefully, with complete Scope 3 inventories and a realistic abatement pathway, will find the framework is increasingly accepted by investors, lenders and major customers as the benchmark for credibility. Companies that set targets quickly to claim the badge, without doing the underlying work, will find the revised standard exposes the gaps.
If you are considering SBTi submission, or reviewing your existing targets in light of the revision, get in touch to discuss our Net Zero Carbon strategy service.