The London-based Science Based Targets initiative launched new guidance on Friday for companies to review their validated climate targets every five years, alongside an expanded framework for classifying company climate commitments.
The announcement follows a 30 percent year-on-year rise in science-based target submissions, after a record number of validations in 2024.
With many early adopters approaching the five-year mark since setting their first targets, the guidance is designed to ensure alignment with the latest criteria and maintain the integrity of corporate decarbonization efforts.
“Regular reviews help ensure decarbonization targets remain robust, credible, and responsive to emerging risks and opportunities,” said McKenna Smith, head of validation at SBTi. “This supports long-term value creation.”
New Requirements and Dashboard Updates
Two new resources — “Mandatory Five-Year Review Guidance” and “SBTi Commitment and Target Statuses” — will take effect on Dec. 18, 2025.
The five-year review policy applies to corporations and small- to medium-sized enterprises with existing validated targets. Companies are required to reassess and, if necessary, revise their targets to ensure they remain based on science.
The second resource introduces an expanded set of target and commitment statuses on the SBTi Target Dashboard. These new classifications aim to enhance accountability and offer stakeholders clearer insights into whether companies are actively engaged in the SBTi system.
New categories will distinguish between active participants or Targets Set and those no longer engaged or Previous Targets. Subcategories will provide further detail on a company’s stage in the target-setting process.
The updates will replace SBTi’s existing Commitment Compliance Policy when implemented in December.
Extension Provisions and Flexibility
To accommodate operational realities, the SBTi has introduced a limited set of extension options. Companies may request to align their five-year review with a future target year if it falls within a 24-month window. For example, a company with targets set in 2024 for 2030 may review them in 2030 instead of 2029.
Additional extensions — up to 18 months — may be granted if a relevant sector-specific standard is expected to be released. Other extension requests will be considered on a case-by-case basis under SBTi governance protocols.
Implications for Businesses
Until December 2025 effective date, companies can continue submitting new or updated targets. A successful validation resets the five-year review cycle.
SBTi stated that the updated guidance and classification framework are designed to enhance the transparency and credibility of climate strategies, thereby strengthening stakeholder confidence.
“By proactively reviewing and updating targets, companies send a clear signal to investors, customers, and other stakeholders that their climate strategies are credible, ambitious, and accountable,” the organization said in a statement.
The SBTi, a partnership between Carbon Disclosure Project, the UN Global Compact, World Resources Institute, and the World Wide Fund for Nature, validates corporate climate targets in line with the goals of the Paris Agreement.
Also Read:
SBTi Unveils Draft Corporate Net-Zero Standard, Opens Public Consultation
