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 30% this year compared with the same period last year, following a record number of validations in 2024. 

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 new 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 initial target validation publication or the most recent update of all scope 1, 2, and 3 targets.

From the trigger date, companies have up to 12 months to complete the review process. Within the first six months, they must review their targets and submit their results to SBTi Services via the online 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 targets were initially validated 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 results by the end of September 2026, and, if updates are needed, revised targets must be submitted for validation by the end of March 2027.  
 

The review process follow these basic steps: 

1. Review your targets: 

• Companies must conduct the target review against the latest version of the SBTi’s Standards and Guidance, and can use Annex 2 of the 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 must submit the results of the review to SBTi Services no later than six months after the trigger date using the online form.
• 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.

3. Submit updated targets if needed:

• If targets are aligned with the latest SBTi Criteria, no further action is required and the targets will remain active.
• 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 required 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 an SBTi sector-specific Standard is anticipated and will be mandatory for a company to use, the company 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.

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 are active in the SBTi system (‘Commitment’ or ‘Targets Set’) or not active (‘Previous Commitment’ or ‘Previous Targets’), 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.

Although originally scheduled for rollout in December 2025, implementation of this Document has been delayed to allow the SBTi to complete a broader data-infrastructure project

We will advise on the new date for implementing this Document once we have it. It is our intention to implement it during 2026, at which point the new version of the Target Dashboard will be released. 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 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 December 2025 to reflect a revised timeline for Target Status implementation and the newly published Five-Year Renewal Manual with step-by-step instructions for renewing targets.