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 two 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.
• 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. 

These resources will come into effect on December 18, 2025, five months after publication. Together, they aim to clarify expectations, streamline implementation, and respond to stakeholder feedback. 

The Mandatory Five-Year Review Guidance

Under the SBTi’s Corporate Net-Zero Standard V1.2 (NZ C32) and Near-Term Criteria V5.2 (NT C26), 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 results to SBTi Services. If updates are needed, revised targets must be submitted for validation within 12 months of the trigger date. 

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 Mandatory Five-Year Review Guidance provides practical steps to follow: 

• First, companies must conduct the target review using Annex 2 of the Guidance. This Annex lists the SBTi Criteria requirements, the points of assessment, and the evidence required to demonstrate conformance.
• Second, companies must submit the results of the target review to SBTi Services no later than six months after the trigger date.
• Third, SBTi Services will 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. If targets are aligned with the latest Criteria, no further action is required and the targets will remain active. If, however, SBTi Services identifies any deviations from the latest Criteria, the company will have to update their targets within 12 months of the trigger date. If updates are not made when required, the target status will be adjusted as outlined in the SBTi Commitment and Target Statuses. 

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