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🌍 Global

SBTi Introduces New Guidance for Target Reviews and Statuses

The landscape of corporate climate reporting is continuously evolving, with increasing demands for robust and transparent targets. To meet these demands, leading organizations are updating their guidance to enhance accountability and scientific rigor. The Science Based Targets initiative (SBTi) is at the forefront of this evolution, recently introducing key new policies.

The London-based Science Based Targets initiative (SBTi) on 18th July 2025, launched new guidance for companies to review their validated climate targets every five years. This update is introduced alongside an expanded framework for classifying company climate commitments.

The announcement follows a significant 30 percent year-on-year rise in science-based target submissions, coming after a record number of validations in 2024. With many early adopters now approaching the five-year mark since setting their initial targets, this guidance is specifically designed to ensure ongoing alignment with the latest scientific criteria and to maintain the integrity of corporate decarbonization efforts. The Mandatory Five-Year Review Guidance and SBTi Commitment and Target Statuses are set to take effect on December 18, 2025.

Key Highlights of the New Guidance:

Mandatory Five-Year Review: Companies and Small-to-Medium-sized Enterprises (SMEs) with existing validated targets will now be required to reassess and revise them every five years. This policy ensures that corporate decarbonization pathways are consistently updated to reflect the most current scientific criteria.

Enhanced Commitment and Target Statuses: The SBTi Target Dashboard will feature new classifications, providing clearer insights into the status of companies’ engagement within the SBTi system. This aims to enhance accountability by distinguishing between active participants and those no longer engaged, offering greater transparency to stakeholders.

Flexibility and Extensions: Recognizing the complexities of target setting, the SBTi offers options for companies to align reviews with future target years within a 24-month window. Additionally, extensions of up to 18 months may be granted if sector-specific standards are anticipated.

What This Means for Businesses

The new SBTi guidance carries several direct implications for companies with existing or planned science-based targets:

Continuous Alignment: Businesses with validated targets must now commit to a mandatory five-year review. This ensures their decarbonization efforts and targets continuously align with the latest scientific criteria, requiring ongoing monitoring and potential adjustments.

Enhanced Accountability: The updated SBTi Target Dashboard will provide clearer classifications of companies’ engagement statuses. This means greater transparency regarding a company’s active participation (or lack thereof) in the SBTi system, increasing public scrutiny and stakeholder insight into their commitments.

Increased Transparency and Credibility: Adhering to these new review processes and updated classifications will significantly boost the transparency and credibility of a company’s climate strategies, thereby strengthening stakeholder confidence in their climate commitments.

Strategic Planning for Reviews: Companies should strategically plan for these mandatory reviews, utilizing available extension options (e.g., aligning reviews with future target years within a 24-month window or applying for an 18-month extension if sector-specific standards are expected) where relevant to optimize their target management.

Continuous efforts and mandates like these are designed to reinforce the credibility of corporate climate strategies and foster greater stakeholder confidence in the commitments being made. By mandating regular reviews and improving transparency, the SBTi continues to drive ambitious and science-aligned climate action across the global business landscape.