What Building Owners Need to Know About the New SBTi Net-Zero Standard
- Olaf Reinen
- Mar 20
- 4 min read
The latest Net-Zero Standard v2.0 (Consultation Draft) from the Science Based Targets initiative (SBTi) is pushing companies beyond just making climate commitments—it’s all about action and accountability. This updated standard provides a clearer roadmap for businesses, including building owners, to set, track, and meet net-zero targets in a way that aligns with the latest climate science.
So, what does this mean for building owners? Here are the key takeaways:
1. It’s No Longer Just About Making a Pledge—You Need to Show Progress
In the past, companies could set net-zero goals and leave them at that. Now, they’ll need to prove they’re making progress by tracking and reporting emissions reductions over time. This means monitoring energy use, improving efficiency, and making real, measurable changes to buildings and operations.
2. Scope 3 Emissions Matter More Than Ever
It’s not just about the energy used in a building (Scope 1 & 2 emissions); the new standard places a stronger emphasis on Scope 3 emissions, which include:
Tenant energy use (if they pay their own utility bills).
Emissions from suppliers and materials (like cement, steel, and insulation).
The carbon footprint of the full building lifecycle (including renovations and demolitions).
Building owners will need better data on these factors and a strategy to cut emissions across the entire supply chain.
3. Short-Term and Long-Term Targets Are Required
The SBTi is making companies set both near-term (5-year) and long-term (2050) goals. For building owners, this means focusing on:
✔ Energy efficiency upgrades (better insulation, LED lighting, high-performance HVAC).
✔ Electrification (switching from gas to electric heat pumps).
✔ Renewable energy (installing solar or signing power purchase agreements).
4. Not Every Building Owner Will Have the Same Requirements
The standard introduces different rules depending on company size and location:
Large owners in high-income countries face stricter requirements.
Smaller owners or those in lower-income regions have more flexibility.
If you own a large portfolio, expect to be held to higher standards when it comes to tracking emissions and hitting reduction targets.
5. Carbon Offsets Alone Won’t Cut It
The new standard makes it clear: reducing emissions comes first. While carbon removals (like reforestation or carbon capture) can help address residual emissions, companies can’t rely on offsets as a substitute for cutting their own emissions.
For building owners, this means investing in real-world energy efficiency and renewable energy projects rather than just buying credits.
6. You’ll Need a Clear, Public Transition Plan
Building owners will need to publish a climate transition plan outlining:
How they plan to decarbonize buildings over time.
Steps they’re taking to phase out fossil fuel heating and cooling.
Their strategy for working with tenants and suppliers on sustainability.
This transparency helps attract investors, future-proof assets, and stay ahead of regulations.
7. Investing Beyond Your Own Buildings Can Boost Your Credibility
The standard also encourages companies to support broader climate action, like investing in clean energy projects outside their own operations. For building owners, this could mean funding:
Renewable energy projects (wind, solar, battery storage).
Sustainable materials innovation.
Community-based decarbonization efforts.
While this isn’t mandatory, it could help boost your reputation and create additional business opportunities.
What Should Building Owners Do Now?
To stay ahead, consider these next steps:
✔ Get a handle on your building’s carbon footprint – Start tracking energy use, emissions, and supplier impact.
✔ Make efficiency a priority – Invest in HVAC upgrades, insulation, and energy-smart tech.
✔ Plan for electrification – If you’re still using gas heating, consider a long-term transition to electric systems.
✔ Engage tenants and suppliers – Work with tenants to improve energy performance and push suppliers toward lower-carbon materials.
✔ Develop a net-zero roadmap – A clear, public transition plan will help you stay compliant and attract forward-thinking investors.
Bottom Line
This new SBTi standard is raising the bar—companies, including real estate owners, need to prove they’re making real progress toward net-zero. The good news? Those who take action now will stay ahead of regulations, reduce long-term costs, and keep their buildings competitive in a decarbonizing economy.
How Lookthrough Can Help
Meeting the new SBTi net-zero requirements isn’t just about making plans—it’s about having the right data to back them up. Lookthrough simplifies the entire process, helping building owners and real estate managers track, analyze, and act on their emissions data with confidence.
Here’s how we can help:
✔ Seamless data management – We handle data input, tracking, and analysis, so you can focus on action instead of spreadsheets.
✔ Comprehensive emissions calculations – We calculate Scope 1, 2, and 3 emissions, ensuring you have a complete and accurate picture of your carbon footprint.
✔ Scenario modeling – Our AI-powered tools help you explore cost-effective pathways to decarbonization.
✔ Impact tracking & reporting – Easily measure progress, benchmark performance, and generate reports aligned with SBTi and regulatory requirements.
The path to net-zero is complex, but you don’t have to figure it out alone. Lookthrough makes it simple—from data collection to strategy execution.
🔹 Want to streamline your net-zero planning? Let’s talk. Get in touch today.
For the full report go to the SBTi web page here.
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