Prepare Your Scope 2 Energy Strategy for SBTi V2.0

The Science Based Targets initiative (SBTi) Corporate Net-Zero Standard V2.0 introduces new considerations for the energy purchases used to support Scope 2 targets. For energy buyers, SBTi V2.0 introduces new procurement considerations that SBTi summarized as Near, New and Now.

Under SBTi V2.0 customers will need to evaluate new purchases against the Near, New and Now criteria. That assessment should consider where the generation is located, when the facility was built or repowered, whether the necessary consumption and generation data is accessible, and how the transaction is structured. Together, these factors can help companies determine whether meeting the V2.0 criteria is practical or whether availability, data gaps or added complexity may make compliance more burdensome.

If meeting these future requirements appears difficult or uncertain, the transition window may offer another path. Certain eligible carbon-free power contracts executed before February 1, 2027,² may provide more time to reassess Scope 2 strategies, address data and reporting gaps, and prepare future purchases for the new standard. Understanding the requirements and available options now can help sustainability and procurement teams decide whether to adapt their approach immediately or act before the cutoff.

Understanding SBTi’s New Scope 2 Criteria

SBTi V2.0 introduces new procurement considerations that can be summarized as Near, New, and Now. Together, these criteria put greater emphasis on where carbon-free energy is generated, the age of the generating facility, and the temporal matching between the clean energy generation and your usage.

Near: Consider where generation is located

Under V2.0, instruments used to demonstrate Scope 2 progress generally must come from low-carbon generation in the same deliverability region as the electricity consumed, subject to certain exceptions.

Companies that buy electricity across multiple markets will need a clear view of where electricity is consumed and where the generation supporting each purchase is located.

New: Understand the generation behind your purchase

V2.0 also introduces a 15-year asset age criterion. Instruments generally need to come from low-carbon generators built or repowered within the past 15 years.

As a result, buyers may need more detail about the specific facilities supporting their purchases, including when each one entered service or was repowered.

Now: Prepare for more detailed reporting

Annual matching remains the baseline for demonstrating target progress, while hourly reporting becomes a requirement for Category A¹ companies in activity pools of 10 GWh or more after 2030.

Companies preparing these requirements should take stock of the electricity consumption and generation data they have today and notate where gaps may exist.

Reviewing Existing Energy Purchases

Preparing for SBTi V2.0 does not necessarily mean overhauling your procurement strategy. Start by understanding the contracts already supporting your Scope 2 targets.

Characteristics can help structure that review:

• Location: Where is the generation relative to the associated electricity consumption?
• Generation: What resource supports the purchase, and when was the facility built or repowered?
• Timing:  When was the contract executed?

Reviewing these characteristics across your energy portfolio shows where additional information or analysis may be needed.

Why Contract Timing Matters

Under SBTi’s transition framework, purchases made before and after the V2.0 cutoff can be treated differently. Certain eligible contracts executed before February 1, 2027, may retain treatment under the current standard (V1.3) for their contract term. Contracts executed on or after that date may need to meet the V2.0 procurement criteria when a company transitions to the new standard.

That makes the contract execution date a key data point for companies reviewing their existing portfolios and weighing upcoming procurement decisions.

Preparing Future Energy Purchases for SBTi V2.0

Evaluating new energy purchases against both current requirements and V2.0 criteria now can help reduce uncertainty later.

Consider these steps:

• Confirm your company’s current SBTi target and expected transition timing.
• Inventory contracts and purchases supporting Scope 2 targets.
• Document execution dates, contract terms, generation sources, locations and relevant generation attributes.
• Identify upcoming renewals, extensions, or amendments that may need additional review.
• Evaluate new purchases against the Near, New and Now criteria before signing.
• Assess whether consumption and generation data will support future reporting requirements.
• Bring sustainability, procurement, legal and energy teams together when reviewing complex transactions.

These steps give you a clearer picture of which purchases can assist you in determining what criteria are currently being met and where and how any potential gaps can be resolved.

Building a More Informed Scope 2 Procurement Strategy

SBTi V2.0 puts a sharper focus on the details behind the energy purchases used to support Scope 2 targets. That makes coordination between sustainability and energy procurement teams increasingly important.

Understanding where generation comes from, the characteristics of the generating facility, when contracts were executed, and how transactions are structured helps organizations prepare for evolving requirements while continuing to advance their clean energy and emissions goals.

As the nation’s largest producer of carbon-free energy, Constellation helps businesses evaluate their energy purchasing strategies and understand the generation attributes, contract timing and transaction structures that matter as SBTi requirements evolve.

Ready to assess your current strategy? Download our SBTi V2.0 Scope 2 Procurement Readiness Checklist to identify the contracts, generation attributes and reporting considerations worth reviewing with your team before January 29, 2027.