5 August 2025

New analysis of the Science Based Targets initiative (SBTi) data by leading Net Zero advisory firm McGrady Clarke reveals that while the UK ranks among the top countries globally for climate ambition, many organisations have yet to validate their Net Zero targets. Science-based emissions targets add credibility and strengthen a company’s ESG rating, which many investors and lenders use to inform their decisions. Delays in achieving full validation may therefore limit access to financial opportunities.

At the time of writing, out of the 11,995 global companies in the latest SBTi dataset that have committed to the initiative, 13.3% are based in the UK. However, amongst these British companies, a striking 68% gap exists, with only 509 of these companies having successfully validated their Net Zero targets with the SBTi.

Many of the remainder have achieved validation of their Near-term targets and are working towards the more challenging Net Zero target validation. Some organisations may face challenges such as gaps in emissions data, especially across all three reporting scopes, in addition to challenges in understanding the complex terminology within the submission forms and corresponding guidance. Passing SBTi scrutiny requires a strong sustainability understanding and foundation, not often found within the usual corporate structure, particularly when it comes to the methodology applied to measuring and reducing emissions across all 3 Scopes.

The SBTi launched a global pilot programme on the 16th of June 2025 to test its revised Corporate Net-Zero Standard Version 2.0. The pilot, which runs through August 2025, invites businesses of all sizes and sectors to provide input through surveys and live testing of the updated framework. The new standard builds upon the 2021 standard, which is already embedded in the climate strategies of more than 1,850 companies worldwide.

Beyond climate impact, successful validation can deliver significant business benefits. Verified targets help build investor confidence, improve ESG ratings and align with UK climate disclosure requirements, including Streamlined Energy and Carbon Reporting (SECR), Task Force on Climate-related Financial Disclosures (TCFD) and Procurement Policy Note 006 (formerly PPN 06/21).

Businesses are increasingly turning to specialist sustainability consultancies such as McGrady Clarke to support SBTi submissions. Their services support readiness assessments, meticulous emissions baselining to strategic pathway development and submissions, designed to ensure targets are both ambitious and achievable.

Looking ahead, the final version of the SBTi Net-Zero Standard 2.0 is expected by the end of 2025, with implementation anticipated from 2027. McGrady Clarke advises businesses to act now to maintain momentum, close validation gaps and stay ahead of evolving compliance and investor expectations.

For more information on SBTi support and Net Zero strategy development, contact McGrady Clarke’s sustainability team at info@mcgradyclarke.com.

ENDS

Editor’s Notes

Reference sources

Science Based Targets (2025). Target dashboard. [online] Science Based Targets. Available at: https://sciencebasedtargets.org/target-dashboard [Accessed 4 Aug. 2025].

McGrady Clarke is a leading business sustainability and energy consultancy specialising in energy consumption and carbon reduction, Net Zero strategy, and climate-related compliance reporting. Since 2019 its foundation in Newcastle upon Tyne has grown to be recognised as a trusted partner for large UK and EU businesses and public sector organisations seeking to reduce their energy costs and carbon footprints.

Contact
For further information, please contact Millie Plant, Marketing Content Executive
Tel: 0191 8142000
Email: millie.plant@mcgradyclarke.com

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