Customers, investors, and supply-chain partners increasingly expect companies to set science-based emissions targets. The SBTi is the most credible framework for doing so. This guide explains what the SBTi is, how it works, the latest Net-Zero Standard V2.0, and how to prepare.

What is the SBTi?

The Science Based Targets initiative (SBTi) is a global body that validates corporate greenhouse-gas reduction targets against climate science (limiting warming to 1.5°C). It was founded by CDP, the UN Global Compact, WRI, and WWF.

An important point: the SBTi does not issue an ISO-style “certificate.” Instead, a company sets its own emissions-reduction targets and submits them to the SBTi for validation. As of January 2026, more than 10,000 companies held validated targets (around 13,000 including commitments), with 40%+ growth in 2025 and Asia emerging as a centre of gravity.

Types of SBTi targets

• Near-term targets: a 5–10 year emissions-reduction pathway.
• Long-term net-zero targets: under the Corporate Net-Zero Standard, reaching net zero by 2050 at the latest.
• Emission scopes: Scope 1 (direct), Scope 2 (purchased energy), and Scope 3 (value chain — usually the majority of emissions).

The process (5 stages)

1. Commit (optional) — announce intent to set science-based targets.
2. GHG inventory — measure Scope 1, 2, and 3 emissions per the GHG Protocol.
3. Develop targets — set reduction targets using SBTi methods and criteria.
4. Submit & validate — submit to the SBTi (via SBTi Services) for validation.
5. Disclose — publish targets and report progress annually.

Latest update: Corporate Net-Zero Standard V2.0

The SBTi published the Corporate Net-Zero Standard V2.0 on 11 June 2026 — its biggest overhaul since 2021. Key innovations:

• Company categories: Category A (large/mid-market) and Category B (most SMEs), with proportionate obligations.
• Differentiated support for SMEs and companies in lower-income countries.
• Context-specific targets by sector, geography, and legacy capital stock.
• An implementation focus, shifting from ambition to real-world delivery with transparent progress.

Timeline: V1.3.1 remains the applicable framework for validation in 2026 and accepts new submissions until 31 December 2027; from early 2027 companies may submit under V1.3.1 or V2.0; from 1 January 2028, V2.0 is mandatory for new targets.

If your company is setting targets in 2026, the SBTi recommends doing so now under the well-established V1.3.1 while building the data foundations V2.0 will require.

Why Scope 3 matters most

For most companies, Scope 3 (value-chain emissions) is the largest share — and the hardest to inventory, since it depends on supplier and partner data. Perfect data is not a prerequisite: start with what you have and improve over time. Under V2.0, Scope 3 targets remain optional for SMEs, but if you supply larger businesses, your emissions data becomes part of their compliance.

Our SBTi services in Vietnam

We are an independent consulting and training provider (the SBTi performs the validation):

• Training on the SBTi, GHG inventory (GHG Protocol), and science-based target setting.
• GHG inventory consulting across Scope 1/2/3 and value-chain data collection.
• Target development under V1.3.1, with foundations prepared for V2.0.
• Submission support until your targets are validated.

Frequently asked questions (FAQ)

1. Does the SBTi issue a certificate? No. It validates a company’s emissions-reduction targets; it is not an ISO-style certification.

2. Can SMEs use the SBTi? Yes. The SBTi offers a dedicated route and accommodations for SMEs; Scope 3 targets are often optional for them.

3. Is Scope 3 mandatory? It depends on size and applicable criteria. Scope 3 is usually the majority of emissions and is highly important, though optional for SMEs.

4. Should we wait for V2.0 or act under V1.3.1? The SBTi recommends setting targets now under V1.3.1 while building data for V2.0.

Contact us for a business consultation

ISC Global Co., Ltd. Hotline: +84 933 096 426 – +84 868 591 260 Email: info@iscglobal.asia | van.pham@iscglobal.asia Website: iscglobal.asia | iscglobal.edu.vn

In recent years, ESG (Environmental – Social – Governance) has become one of the most important trends in global corporate management. Many large corporations, investment funds, and financial institutions are now requiring companies to demonstrate transparency in environmental, social, and governance factors before entering into partnerships or making investments.

For businesses, ESG is no longer an unfamiliar concept. It is increasingly becoming an important requirement for companies that want to participate in global supply chains and gain access to international capital.

This article will help you understand what ESG is, why ESG matters, and where businesses should start to implement ESG effectively.

What is ESG?

ESG stands for three key factors:

E – Environmental

S – Social

G – Governance

It is a framework used to evaluate a company’s sustainability performance and its responsibility toward the environment, society, and corporate governance systems.

ESG criteria are widely applied by:

• investment funds
• financial institutions
• multinational corporations
• global supply chains

The Three Main Pillars of ESG

1. Environmental

The environmental pillar evaluates how a company impacts the natural environment.

Key aspects include:

• greenhouse gas emissions
• energy consumption
• waste management
• use of natural resources

Many companies now conduct greenhouse gas inventories based on the GHG Protocol to manage emissions and develop carbon reduction strategies.

2. Social

The social pillar focuses on how a company manages relationships with:

• employees
• customers
• communities

Typical evaluation criteria include:

• working conditions
• occupational health and safety
• human rights
• community responsibility

3. Governance

Corporate governance relates to:

• transparency
• business ethics
• risk management

Key governance aspects include:

• board structure
• anti-corruption measures
• transparency and disclosure

Why Businesses Need to Implement ESG

1. Requirements from International Markets

Major markets such as the EU and the United States are increasingly introducing strict sustainability regulations.

Examples include:

• ESG reporting
• supply chain traceability
• carbon emission reduction requirements

Companies that fail to meet ESG expectations may lose export opportunities or be excluded from global supply chains.

2. Attracting Investment

Investment funds are increasingly prioritizing companies that demonstrate strong ESG performance.

Implementing ESG can help businesses:

• improve credibility
• access sustainable financing

3. Better Risk Management

Implementing ESG enables companies to:

• reduce environmental risks
• improve governance practices
• enhance transparency

4. Strengthening Corporate Reputation

Companies with strong sustainability strategies often:

• gain greater trust from customers
• attract talented employees

Where Should Businesses Start with ESG?

Implementing ESG requires a clear and structured roadmap.

Step 1: Conduct an ESG Assessment

Companies should first identify:

• ESG risks
• gaps compared with international standards

Step 2: Develop an ESG Strategy

This includes:

• defining sustainability goals
• setting ESG KPIs
• developing an implementation plan

Step 3: Implement ESG Programs

Examples include:

• greenhouse gas inventory
• energy efficiency programs
• improving corporate governance

Step 4: Sustainability Reporting

Many companies now follow reporting standards from the Global Reporting Initiative (GRI) to disclose sustainability information and maintain transparency with stakeholders.

ESG Implementation Support Services

ISC Global provides professional services to support businesses in implementing ESG, including:

1. ESG Strategy Consulting

• developing ESG roadmaps
• defining sustainability KPIs
• integrating ESG into corporate strategy

2. Greenhouse Gas Inventory (GHG Inventory)

• calculating Scope 1, Scope 2, and Scope 3 emissions
• developing carbon reduction strategies

3. ESG Training for Businesses

• ESG awareness training
• ESG professional training
• GHG accounting training

4. Preparation for International ESG Assessments

Supporting companies in preparing for international evaluation programs such as:

• ESG ratings
• sustainability assessments
• sustainable supply chain requirements

5. Sustainability Report Content Editing Services

In addition to ESG consulting, ISC Global also provides content editing and development services for sustainability reports.

This service is particularly suitable for companies that:

• already have ESG data but need to develop a professional report
• want to align their reports with international standards
• aim to improve ESG communication quality

Our support services include:

• editing sustainability report content
• structuring reports based on international standards
• clearly presenting ESG data and performance
• developing sustainability messaging for businesses
• editing content in both English and Vietnamese

Professional editing services help businesses improve report quality, enhance transparency, and build trust with investors and international partners.

ESG is no longer just a trend; it is becoming an essential requirement in modern corporate governance.

For businesses, implementing ESG early can help:

• enhance competitiveness
• access international markets
• achieve long-term sustainable development

If your organization is looking for support in ESG implementation or sustainability report editing services, please contact the ISC Global team for detailed consultation.

Context & Business Need

As businesses face growing expectations to disclose their ESG performance, greenhouse gas emissions, and social responsibilities, a Sustainability Report is no longer just a disclosure document — it is a strategic tool for building credibility, attracting investors, and meeting the increasingly rigorous requirements of international clients, financial institutions, and global supply chains.

Yet many organizations continue to face significant challenges when preparing their sustainability reports:

1. Scope of Services

1.1. Content Editing & Standardization

• Rewriting and refining report language to be professional, clear, and coherent — aligned with global corporate reporting standards
• Standardizing ESG terminology in accordance with international frameworks (GRI Standards, ISSB/IFRS S1-S2, CDP Framework)
• Ensuring consistency of tone, structure, and messaging throughout the entire report

1.2. Report Restructuring to International Standards

• Reorganizing and optimizing content to follow GRI/ISSB reporting structure — covering all mandatory and recommended disclosures
• Adding missing sections: Materiality Assessment, Stakeholder Engagement, Governance Framework, Scope 1–2–3 emissions
• Establishing clear linkages between core business strategy and long-term sustainability objectives

1.3. Technical Data Editing

• Reviewing the logic and consistency between quantitative data and corresponding narrative descriptions in the report
• Ensuring greenhouse gas data complies with the GHG Protocol — with accurate classification of Scope 1, 2, and 3 emissions
• Synchronizing data across the Annual Report, Sustainability Report, and related corporate disclosures

1.4. Bilingual Editing: Vietnamese – English

• Reviewing and refining English translations to meet international ESG industry standards
• Ensuring terminology is accurate, natural, and appropriate for an audience of international investors and partners
• Verifying content equivalence and tonal consistency between both language versions

2. Value Delivered to Your Organization

Enhanced professionalism and brand credibility — A clear, well-structured report that accurately reflects your organization’s ESG capabilities

Meet requirements of international clients and financial institutions — Aligned with expectations of EU, US, Japanese partners and major financial bodies

Support for improving ESG ratings — Strengthen performance on EcoVadis, CDP, and other leading ESG assessment platforms

Reduce risk of errors and information inconsistencies — Avoid legal and reputational risks arising from inconsistent data or unsubstantiated claims

Improved access to green finance — A standards-compliant report is a prerequisite for green bond issuance or ESG-linked lending

3. Our Process

Estimated timeline: 2 – 6 weeks, depending on the scope and initial completion level of the draft report.

4. Who Is This Service For?

• Organizations preparing their first Sustainability Report — requiring comprehensive support from structure to content
• Companies with an existing report that needs to be upgraded to international standards
• Businesses preparing to publish their sustainability report for international markets or foreign investors
• Organizations preparing for ESG assessments (EcoVadis, CDP) or planning to issue green bonds

5. Why Choose ISC Global?

ISC Global’s Expertise & Practical Experience

A team of specialists with hands-on ESG implementation experience across Vietnamese and international organizations

Deep expertise in GRI Standards, ISSB/IFRS S1-S2, GHG Protocol, and CDP Framework

Combines strategic ESG thinking with advanced bilingual content editing capabilities

Absolute commitment to the confidentiality and security of all client data throughout the engagement

Proven track record supporting Vietnamese enterprises in building and standardizing sustainability reports to international quality

Start Elevating Your ESG Report Today Contact the ISC Global team for a detailed consultation and a tailored service proposal. ISC Global Co., Ltd. +84 933 096 426  |  +84 868 591 260 info@iscglobal.asia  |  van.pham@iscglobal.asia https://iscglobal.asia  |  https://iscglobal.edu.vn ──────────────────────────────────────── Vietnam Representative: Duc Luong Services +84 933 096 426  |  +84 868 591 260     ducluongservices@gmail.com     https://ducluongservices.com ──────────────────────────────────────── STC VN Co., Ltd. +84 933 096 426  |  +84 868 591 260     info@staunchlyservices.com.vn     https://stauchlyservices.com.vn

ISC Global Co., Ltd.

Hotline: +84 933096426 – +84 868 591 260

Email:

• info@iscglobal.asia
• van.pham@iscglobal.asia

Website:

• https://iscglobal.asia/
• https://iscglobal.edu.vn/

Contact Vietnam representative: Duc Luong Services

Hotline: +84 933096426 – +84 868 591 260

Email: ducluongservices@gmail.com

Website:

• https://ducluongservices.com

STC VN Co., Ltd.

Hotline: +84 933096426 – +84 868 591 260

Email: info@staunchlyservices.com.vn

Website: https://stauchlyservices.com.vn