Updates to SBTi Scheme

Mandatory Five-Year Target Review Mechanism

According to the latest SBTi standards—Corporate Net-Zero Standard v1.2 and Near-Term Target Criteria v5.2—all validated science-based targets must undergo a formal review at least once every five years. This mechanism ensures continued alignment with the most current climate science.

• Triggering Conditions

The five-year review period begins from the later of the following two trigger dates:

1. Five years from the initial target validation announcement; or
2. Five years from the most recent comprehensive update to Scope 1, 2, and 3 targets

• Review Process and Timeline

1. Within 6 months of the trigger date: Companies must conduct an internal evaluation using Annex 2 of the SBTi guidance and submit evidence of alignment to the SBTi Services Team.
2. Within 30 business days of submission: SBTi will assess the documentation and determine whether the targets remain valid under the latest standards.
3. If an update is required: The revised target must be submitted for revalidation within 12 months of the trigger date.

Annex 2 is an official checklist that outlines the required criteria, assessment dimensions, and supporting documentation for compliance.

• Example:

If a company had its target validated in March 2021:

1. The trigger date would be March 2026
2. The review outcome must be submitted by September 2026
3. If updates are needed, the revised targets must be finalized and revalidated by March 2027

Failure to submit an updated target within 12 months of the trigger date may result in a change to the target’s status on the SBTi dashboard.
 

• Conditions for Review Deferral

To provide flexibility, SBTi offers limited deferral options under the following conditions:

1. If the target year falls within 24 months of the trigger date: Companies may request to combine the review with a new target submission.
2. If sector-specific standards are expected to become mandatory soon: A deferral of up to 18 months may be granted.
3. Other special cases: Companies may apply individually, and SBTi will assess deferral requests based on internal governance processes.
    

Commitment and Target Status Classification System

To improve transparency, SBTi has restructured the classification of corporate commitments and targets on its public dashboard. The new framework will take effect on December 18, 2025, replacing the previous compliance policy.

• Commitment Status Categories:

1. Active: Commitment is currently valid
2. Extended: Extension has been formally approved
3. Fulfilled: Commitment has been successfully met
4. Expired / Withdrawn / Archived / Removed: Commitment is no longer valid

• Target Status Categories:

1. Active – Target remains aligned with the latest SBTi standards
2. Extended / Updated – Target has been modified or adjusted
3. Expired / Inactive / Withdrawn / Archived / Removed – Target is no longer in effect

These classifications are reflected directly on the SBTi dashboard and help external stakeholders—such as customers, investors, and regulators—clearly understand a company’s current progress and alignment status.

Any updates or missed deadlines will result in a status change that is publicly visible.

How Should Companies Respond?

1. Start preparing review materials well in advance to avoid last-minute pressure and delays
2. Proactively submit updated targets before the review trigger date to reset the five-year cycle early and increase operational flexibility
3. Maintain an "Active" status on the SBTi dashboard to demonstrate credibility, transparency, and climate leadership

Proactive engagement with the SBTi review process is not only a compliance requirement—it is also a strategic opportunity to reinforce your organization’s ambition and reliability in the transition to a net-zero economy.

Conclusion

These two SBTi updates reinforce the governance and verifiability of science-based targets, reflecting growing global expectations for corporate transparency and accountability in climate action.

Companies are strongly encouraged to:

1. Initiate review preparations early,
2. Align rigorously with the latest SBTi criteria, and
3. Use the updated framework to communicate progress clearly to stakeholders.

Early and transparent action sends a powerful signal that your climate strategy is credible, ambitious, and responsible—strengthening your position as a leader in the global net-zero transition.

Services Offered by DQS HK

• EPD Service
• Product Carbon Footprint (CFP) Audit Report for CIC GPC
• EcoVadis Service
• SBTi Service
• CDP Service
• ESG Report Assurance
• ISO 14064  Corporate Carbon Footprint Verification
• ISO 14067 Product Carbon Footprint Verification
• ISO 14040 and 14044 - Review of Life Cycle Assessments