Climate Change & Natural Capital (AO) | SBTi changes GHG target rules, ditches long-term targets, boosts carbon credits

Research evidence excerpt

Climate Change & Natural Capital (AO) | SBTi changes GHG target rules, ditches long-term targets, boosts carbon credits

News comment

15 June 2026

Anastassios Adamopoulos

Sustainability Analyst

+44 207 621 5187Climate Change & Natural Capital

SBTi changes GHG target rules, ditches long-term targets, boosts carbon

credits

Key points:

The SBTi, the most widely used standard-setting body for GHG emissions targets, has finalised changes to its validation process

and requirements for emissions targets.

With these new rules, the SBTi moves away from demanding pure emissions-reduction targets to giving companies a broader set

of options, underpinned by greater flexibility, while also requiring greater disclosure.

Additionally, carbon removal purchases are encouraged and will become mandatory from 2035.

While a voluntary framework, the SBTi's reach means it is an important proxy for what corporations view as best practice and

what investors can expect the next generation of targets to look like.

We provide an overview of the changes and their implications for companies and investors

New SBTi standard: Greater leniency on targets

The publication of the SBTi's new corporate net zero standard on 11 June concludes a contentious process that has attracted

significant scrutiny from companies, investors and NGOs trying to shape the future of decarbonisation via the group's target-

setting rules, which over 13,600 companies have committed to or set targets so far.

The new rules will apply to targets being submitted and renewed from 2028, which, in practice, means that companies starting

work on targets today will likely be bound by these new requirements.

On the one hand, the framework relaxes expectations by allowing companies to miss targets as long as they can demonstrate