Major updates to ESG standards set to redefine corporate climate commitments in 2026

This year has marked a pivotal period for the evolution of major corporate climate target-setting and carbon-accounting frameworks, with significant updates from leading organisations shaping how companies approach environmental, social, and governance (ESG) responsibilities. Looking ahead, 2026 is set to be a crucial year as companies reassess their progress and set new strategic targets beyond 2030, while prominent standards bodies finalise key revisions.

Among the most notable developments is the release of the seventh edition of the B Corp Standards by B Lab Global in April 2025, which represents the most substantial update in the nonprofit’s 19-year history. This revamped standard, spanning 683 pages, introduces higher benchmarks for large companies and mandates continuous improvement across seven critical stakeholder and environmental domains, including climate action, human rights, and diversity, equity and inclusion. Critics have long urged B Lab to be more discerning in its certification process, particularly as multinational corporations increasingly seek the B Corp label, inspired by major certified players like Danone. The new standards are expected to foster more rigorous third-party recertification beginning January 2026, aligning assurance with International Organization for Standardization (ISO) accreditation to enhance credibility. This evolution signals a tightening regulatory climate for companies prioritising genuine ESG advances over mere certifications.

Simultaneously, the Science Based Targets initiative (SBTi) has made notable strides with its Corporate Net-Zero Standard, intended to guide companies toward achieving net-zero emissions by 2050 or earlier. Two draft revisions circulated during 2025 detail refined metrics for all emission scopes, Scope 1, 2, and notably, the often-challenging Scope 3 emissions which encompass upstream and downstream activities outside direct company control. New requirements include the public disclosure of detailed climate transition plans within 12 months of target validation, including Scope 3 target-setting for large businesses exceeding $450 million in revenue, and obligations for tier 1 suppliers to set corresponding net-zero commitments. Additionally, Version 2.0 recognises companies investing in credible carbon removal initiatives, reflecting the growing interest in high-integrity carbon sinks alongside traditional emissions reduction strategies. After delays linked to organisational leadership changes, the final draft is expected in spring 2026, with mandatory adoption for new targets from January 2028. Industry experts highlight the significance of these updates as underpinning the alignment of corporate climate strategies with scientifically validated pathways.

In the background, the Greenhouse Gas Protocol, a foundational standard used by the vast majority of reporting companies, including 97% of those disclosing to CDP in 2023, continues its long-overdue comprehensive overhaul. Since the last major revision in 2015, the protocol’s complexities around Scope 2 (purchased electricity) and Scope 3 emissions have been focal points. Technical working groups established in late 2024 are advancing updates while soliciting public commentary on controversial Scope 2 changes and novel guidance for accounting “consequential” emissions avoidance actions. While first-round consultations continue through December 2025, final protocol revisions have been postponed to 2027, underscoring the challenges of modernising such a globally entrenched framework amid evolving climate disclosure expectations. The GHG Protocol remains instrumental to other standards bodies, including ISO, in aligning disclosure practices.

Meanwhile, ISO’s efforts to transform its net-zero guideline, initially published at COP27 in late 2022, into a verifiable global standard are progressing. ISO 14060 aims to provide authoritative best practices for corporate net-zero claims, distinct from voluntary frameworks and incorporating material reuse, refurbishment, and high-integrity carbon removal as central components. With over 170 national bodies behind ISO and a track record of 600+ standards related to environmental management, an official ISO net-zero standard promises broader business management credibility. A draft standard is expected for public consultation early in 2026, though a definitive final release date remains undecided. This development is seen as pivotal in scaling net-zero beyond the approximately 10,000 companies that currently proclaim commitments.

Together, these intertwined advances signal a momentous tightening and maturing of ESG frameworks as industrial decarbonisation becomes a more quantifiable, transparent, and enforceable domain. Corporations aiming to maintain industry leadership will need to navigate these evolving requirements, balancing commitments with practical transition plans and third-party assurance, largely driven by the consolidation of science-based pathways, rigorous carbon accounting, and credible verification mechanisms emerging across these key standard-setting organisations. For professionals engaged in industrial decarbonisation, 2026 offers both challenges and opportunities to align commercial strategy with internationally recognised climate ambition and accountability benchmarks.