Forging the Next Chapter: SBTi releases new guidance for five-year target reviews and expanded status categories

More companies are setting science-based targets as they recognize the risks the climate crisis poses to their operations and value chains. Target submissions are up 9% within the last 12 months compared with the same period last year. 

Now, many early adopters are approaching the five-year mark since the validation of their first targets. This means it’s time to review and, if needed, update those targets to ensure they continue to be aligned with the latest SBTi Criteria. Regular reviews help ensure decarbonization targets remain robust, credible, and responsive to emerging risks and opportunities, providing a strong foundation for long-term value creation. 

To support companies through this process, and enhance how target reviews are reflected publicly, the SBTi has released three updated resources: 

• Mandatory Five-Year Review Guidance: Outlines the process for corporates and small-and-medium sized enterprises (SMEs) with validated science-based targets to review and update their targets if required.
• Five-Year Review Manual: Provides clear, practical, step-by-step guidance to help companies complete their review with confidence.
• SBTi Commitment and Target Statuses: Enhances transparency and accountability in how commitment and target statuses are applied, and details a new set of commitment and target statuses to be reflected on the SBTi Target Dashboard. 

Companies can submit new or updated targets at any time. Submissions are not restricted by the five-year review cycle or specific commitment and target statuses. The validation process has undergone extensive upgrades in recent years to improve the speed, clarity, and customer experience of target setting and updates. The five-year review process builds on this progress by offering companies a clear and efficient way to review and update their targets.

The Five-Year Review 

Under the SBTi’s Corporate Net-Zero Standard V1.3 and Near-Term Criteria V5.3, companies must review their validated science-based targets at least every five years. This review cycle starts on the trigger date, which occurs at the end of the month, five years after a company’s most recent publication of validated targets.

From the trigger date, companies have up to 12 months to complete the review process. Companies that know they need to update their targets can proceed directly to target submission. The Mandatory Five Year review form is only a requirement when companies request an extension or waiver, or are uncertain if they need to update targets. To simplify the process, the review form is now integrated into the Validation Portal, giving companies a single place to manage their targets and registration information and complete the review form.

If updates are needed, revised targets must be submitted for validation within 12 months of the trigger date via the Validation Portal. 

For example, if a company’s first validated targets were published in March 2021—covering all scopes with a base year of 2020 and a target year of 2028—the mandatory five-year review would be triggered at the end of March 2026. The company must submit its review form by the end of September 2026 if it wishes to request an extension or a waiver, otherwise it has until the end of March 2027 to submit targets for validation.  Companies will receive an email six months prior to the trigger date to prepare for the mandatory five-year review. To confirm your trigger date, email info@sciencebasedtargets.org. 
 

The review process follow these basic steps: 

1. Review your targets: 

• Companies must conduct the target review against the version of the SBTi’s Standards and Guidance accepted at the time of the review, and can use Annex 2 of the Mandatory Five-Year Review Guidance.
• This Annex lists the SBTi Criteria requirements, the points of assessment, and the evidence required to demonstrate conformance. 

2. Submit your review results: 

• Companies can choose to submit the results of the review to SBTi Services no later than six months after the trigger date using the online form in the Validation Portal.
• The Five-Year Review Manual provides companies with detailed advice on how to do this.
• SBTi Services will then assess the results of the target review within 30 business days of the submission date, and determine whether the targets still meet the current SBTi Criteria.
• This step is optional, however, it remains a strong recommendation to enable better tracking and support. It is only a requirement when requesting an extension or waiver, or if a company does not believe or is unsure if they need to update targets. 
• As a company approaches its trigger date, it can use the decision tree on page 9 of the Mandatory Five-Year Review Guidance to determine the appropriate next steps.
   

3. Submit updated targets if needed:

• If SBTi Services confirms that targets are aligned with the latest SBTi Criteria following completing the review form, no further action is required.
• If SBTi Services identifies any deviations from the latest Criteria, the company will have to update their targets within 12 months of the trigger date via the SBTi Validation Portal.
• If updates are not made when required, the target status will be adjusted as outlined in the SBTi Commitment and Target Statuses document. 
   

The flowchart below breaks down each stage of the mandatory five-year review process.

Flexibility for certain circumstances

In some cases, companies may request a waiver for their mandatory five-year review or an extension to set new targets.

• Companies nearing a target year, within 24 months of the trigger date, may request a waiver and bypass completion of the mandatory five-year review. If approved, the company should set new targets when required based on the target year. For example, if a company sets targets in 2024 with a target year of 2030, it is required to complete the mandatory five-year review in 2029. The company can request a waiver to bypass the review and submit a complete set of new targets before the end of 2031.
• If a company intends to use an upcoming SBTi Standard, it may request an extension to set new targets until the relevant Standard is published, up to 18 additional months from the original new targets due date. The length of the extension will be provided as an outcome of the mandatory five-year review process. Extensions will be granted on a case-by-case basis.

These options provide flexibility while ensuring companies remain aligned with the most current and applicable criteria.
 

SBTi Commitment and Target Statuses 

The SBTi Commitment and Target Statuses document has been developed to improve transparency and more accurately reflect the status of companies’ targets on the SBTi Target Dashboard. It introduces an expanded set of commitment and target statuses, defining each status, and outlining the scenarios that prompt them.

Once implemented, the Target Dashboard will detail if companies have validated targets, a commitment to set targets, or a commitment removed, and within these categories, additional status classifications will provide greater detail on a company’s progress and position within the target cycle., giving stakeholders a more complete and up-to-date view of where corporates stand in the target-setting process. They will also include the following subcategories, outlined in the table below.

From September 2026, once the new target statuses are available on the SBTi Target Dashboard, the Commitment and Target Status Document will supersede the existing Commitment Compliance Policy.

In the meantime, the Commitment Compliance Policy remains in effect: expiring and withdrawn commitments will be marked as such, as is currently the case. 

What this means for companies

The Mandatory Five-Year Review Guidance and Manual, along with the SBTi Commitment and Target Statuses document gives companies a clear path for keeping their targets up to date, while improving how climate commitments are tracked and communicated. These resources are designed to support businesses through every step of the review process, enhancing credibility, improving transparency, and building trust that supports informed decision making. 

By proactively reviewing and updating targets, companies send a clear signal to investors, customers, and other stakeholders that a company’s climate strategy is credible, ambitious and accountable–reinforcing climate leadership in the transformation to a net-zero economy.

Ready to set new science-based targets or update existing targets? Visit SBTi Services, and follow us on LinkedIn and X and sign up for our newsletter to get the latest developments in science-based target setting. 

Please note: This blog was updated in August 2026 to reflect the revisions to the Mandatory Five-Year Review Guidance and the Commitment and Target Status Document, as well as the updated to the timeline for target status implementation.