When to Move from SBTi V1.3 to V2? A Decision by Company Situation

Since June 2026, the question I hear most often from sustainability teams is this: "Should we set our target now, or wait for V2?" The short answer: for most companies, waiting is not the right call. But which version to choose depends on where the company stands in the SBTi system and on a few critical dates. In this post I build a decision logic based on the transition documents published by the SBTi and SBTi Services.

The timeline first

So in the twelve months between 1 February 2027 and 31 January 2028, the two versions can be used side by side. This is the window in which the real decision is made.

What does the SBTi itself recommend?

The SBTi's transition document is clear: companies that will set or update targets before 2028 should not delay target setting and can continue to use V1. The document also lists V1's attractive flexibilities: a combined scope 1 and 2 target, the scope 3 target boundary and the data assurance requirements. Targets of companies that take this route remain valid for the full cycle; they move to V2.0 in the next cycle.

Companies with a target year of 2030 or later are advised to keep their current targets and to set targets for the 2030-2035 cycle under V2.0 from 2028 onwards.

Decision logic: which situation is your company in?

1. You have a validated target with a target year of 2030 or later

Decision: Wait, but don't wait idly. Your targets are valid. Start preparing for the new cycle in 2028. In the meantime, take advantage of the V2.0 innovations that are open to V1 users: the implementation hierarchy and the approach to market instruments, and the ongoing emissions responsibility (OER) programme starting in 2027. The SBTi also recommends that V1 users adopt third-party assurance for end-of-cycle progress reports now. If you will be Category A, I advise taking this recommendation seriously; assurance will be mandatory under V2.0, and the first audit is always the hardest.

2. Your target year is approaching

According to SBTi Services, a new target submission must be made by the end of the year following the target year. If the target year is 2026, the deadline is 31 December 2027.

Decision: These companies are right in the middle of the window. During 2027 they can choose either V1.3.1 or V2.0. The deciding questions are:

• Will you be Category A? If so, V2.0 requires limited assurance of base year data, including your scope 3 inventory. If you are not ready for assurance, V1.3.1 is more realistic.
• Can you report scope 2 on a location-based basis and as a share of low-carbon electricity? Under V2.0, the ambition of the scope 2 target is calculated against the location-based inventory.
• Will you be Category B? If so, the burden of V2.0 is lighter than it seems: the scope 3 target, base year assurance and publication of a transition plan are optional. If you set only scope 1 and 2 targets, a validation of 24 to 30 business days on the streamlined timeline is also possible; however, Category B companies with annual turnover above EUR 25 million go onto the standard timeline.
• Does your scope 3 profile benefit from V2.0's new options? If your emissions are concentrated in activities with a sector pathway, such as steel, cement or transport, or if a supplier alignment target makes more sense for you, V2.0 may offer an advantage.

3. Your mandatory five-year review has been triggered

Under V1, the review must be completed within six months of the trigger date; if targets do not meet the criteria, new targets must be submitted within 12 months. If the outcome is "non-compliant", which version can be used depends on the trigger date:

It is also possible to skip the review by submitting a full scope 1, 2 and 3 update before the trigger date.

4. You have an active commitment but no target yet

Decision: The commitment deadline decides.

SBTi Services recommends going for validation under the current standard as soon as possible. Companies whose commitment expires before February 2027 but that want to proceed with V2.0 can request an extension; if approved, the status "Extended" appears on the dashboard. Don't leave the extension request to the last week: if no target is submitted on time, the commitment drops to "Commitment Removed" status and the company can never again obtain a published commitment.

5. You are new to the SBTi system

Until 31 January 2027, a separate near-term or net-zero commitment can be made, and these commitments can be fulfilled with V1 or V2.0. After that date a single "SBTi Commitment" option remains, and it can be fulfilled only with V2.0 targets. A commitment is not mandatory; a company whose data is ready can submit targets directly.

Decision: For a company with ready data and a simple scope, submitting targets directly under V1.3.1 in late 2026 or early 2027 is a fast route. For a company whose data is not yet mature and that faces at least a year of preparation, preparing under V2.0 means not doing the work twice.

6. Special cases

• Financial institutions: Cannot apply under V2.0 in February 2027.
• Companies subject to a sector standard: Validation against sector standards aligned with V2.0 is not yet open; SBTi Services encourages these companies to apply under V1.3.1 and the relevant sector standard until then.

My practical advice

Avoid two traps.

The first is the "let's wait for V2" trap. A target you set today under V1.3.1 remains valid until the end of its cycle. The updated absolute contraction approach (a base year based on the most recent data) was already brought into the V1 system in the second quarter of 2026. The gain from waiting is limited; the loss could be a year spent in your customers' supply chains as "a supplier without a target".

The second is the "last month" trap. V1.3.1 is open to submissions received before 1 February 2028. But validation does not finish in a single day: even for V2.0 the standard timeline is 40 to 60 business days, with response times of several days. For a submission squeezed into January 2028, one round of corrections can change everything. In addition, on the V2.0 side the first operational version of the target-setting tool has not yet been published; the beta version from June 2026 does not reflect the final functionality. Those preparing under V2.0 should plan to rerun their calculations with the final tool.

Whichever scenario you are in, the first step is the same: establish whether you are Category A or B using consolidated figures, and see how far your inventory is from the level V2.0 requires. For the differences in detail, see the guides SBTi Net-Zero Standard V2: what changed and, for the process, the SBTi validation process.

If you would like to work out together which version fits your company's commitment, target year and review dates, take a look at our SBTi target-setting service.