What companies need to know about updates to the Mandatory Five-Year Review Guidance

The Science Based Targets initiative (SBTi) is updating its guidance for companies reviewing their targets, in line feedback from businesses. The Mandatory Five-Year Review Guidance document, which was released in July 2025, is to be revised in the coming weeks to provide greater clarity. However, businesses can benefit from these amendments right away and don’t need to wait until the updated guidance is published.

All SBTi-validated targets are due for review every five years to ensure continued alignment with the latest criteria. These reviews help companies signal to investors, customers, suppliers and staff that their targets remain robust, credible and responsive to emerging risks and opportunities.

The updated guidance covers:

Setting targets using the Corporate Net-Zero Standard V2

Following the publication of the Corporate Net-Zero Standard V2, companies wishing to update their targets under the new Standard can apply for an extension to their target review. This supports a smooth transition to the updated Standard where appropriate, allowing eligible companies to update their targets once against the latest applicable requirements, while maintaining the integrity and ambition of the Mandatory Five-Year Review process.

Extensions are not automatic and will be considered on a case-by-case basis. They will only be granted where companies can demonstrate they are appropriately prepared to transition to the new Standard and meet the relevant requirements within an agreed timeframe.

This reflects the existing approach to target review extensions for companies wishing to set targets using forthcoming sector standards already set out in the Mandatory Five-Year Review Guidance.

Setting scope 3 targets using the Corporate Net-Zero Standard V2 or relevant sector criteria

The updated guidance will also clarify that companies may request an extension to their scope 3 targets only. This enables them to continue progressing their scope 1 and 2 target reviews while benefiting from scope 3 target-setting approaches which best reflect their circumstances, as introduced in the Corporate Net-Zero Standard V2 or relevant sector criteria.

Companies are still required to update their scope 3 targets within the existing extension period once the Corporate Net-Zero Standard V2 or relevant sector standards become operational.

Clarified target review trigger date 

The update will provide greater clarity on how the review trigger date is determined, refining the approach set out in the original guidance in response to feedback from companies. The trigger date shall commence at the end of the month, five years after the most recent validation publication of one or more targets. All affected companies will receive information about what this means for them in the coming weeks.

Target status retained through the review period 

Companies will no longer be required to submit a form or see their target status change at the mid-point of the review cycle. Target statuses will only be assessed at the 12-month target submission deadline, in line with the soon to be updated Commitment and Target Statuses document. This change ensures target status accurately reflects where companies are in the review process.

The Mandatory Five-Year Review form remains a strong recommendation to enable better tracking and support, but 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. Companies who know they need to update their targets can skip this step and proceed straight to submitting targets for validation. This change simplifies the review process and allows companies to focus on reviewing their science-based targets.

Together these updates provide greater clarity on how companies should navigate the Mandatory Five-Year Review, supporting consistent implementation across all eligible companies. All companies expected to submit their review form between now and the end of August 2026 have been contacted directly. All companies with trigger dates ranging up to January 2027 will be contacted during August.