SBTi reports ‘sustained growth’ in climate target setting
Annual data from the Science Based Targets initiative (SBTi) shows that corporate climate target-setting continued to grow in 2025- up 40%, leading to a total of 9,764 companies with validated targets last year. In addition, over the same period the number of companies with validated net-zero targets grew even faster, rising by 61%.
David Kennedy, Chief Executive Officer of the Science-Based Targets initiative, said: “There is clear evidence about the business benefits of science-based target-setting—this is a key lever for companies to manage transition risk and strengthen business resilience, remaining competitive now and in the future.”[i]
He adds that “Despite political headwinds, increasing numbers of companies in every region are setting science-based targets. In doing so they are part of a market transformation that is good for business while contributing to achieving global climate objectives.”[ii]
Asia leads the charge
The SBTi’s annual data reveals that Asia is acting as a centre of gravity for corporate climate target-setting, with growth now occurring at a scale comparable to Europe. The region saw a 53% increase in companies setting science-based targets over the past 12 months, this equates to 1,216 additional companies adopting validated targets, closely matching Europe’s increase of 1,209.
The research finds that this growth is not exclusively linked to major economies such as China, Japan and India, but it is also being driven by strong uptake across emerging markets such as Indonesia, Pakistan, Singapore and Thailand. This is a trend which is reflected more broadly, where Africa and Latin America & Caribbean were the regions with the highest proportional growth after Asia, increasing by 48% and 42% respectively. However, Europe continues to lead in absolute terms, accounting for the highest number of companies with targets overall at 49%, followed by Asia at 36%, and North America at 11%. On a sector basis, healthcare saw the strongest growth in 2025, alongside Information Technology and Materials, making these the fastest-growing sectors for companies setting science-based targets. The SBTi say that this reflects increasing momentum across both service-based and industrial segments of the economy.
Corporate Net-Zero Standard set to see changes
As we reported last March[iii], The SBTi’s Corporate Net-Zero Standard is currently under review, largely due to adoption issues including failure to meet submission deadlines. This previously saw the SBTi remove the emissions commitments of more than 200 companies, including X, Microsoft and Diageo. In its latest draft the SBTi aims to accelerate corporate decarbonisation by:
· Making science-based climate action more accessible and actionable, helping more companies to set and implement targets and deliver measurable progress.
· Bringing forward a stronger, more inclusive framework, with enhanced differentiation reflecting the operational realities of different sectors and geographies.
· Providing a focused and flexible framework to address both operational and value chain emissions.
· Providing an end-to-end cycle that incentivises ambition and recognises progress achieved at the end of the target cycle.
· Introducing a new recognition mechanism to incentivize companies taking early, voluntary action to address the impact of their ongoing emissions.
A public consultation on the latest draft was held between 6th November to 12th December 2025, and it is expected that a final version of the revised Standard will be published in the first half of 2026.
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