From Carbon Measurement to Net Zero Momentum

The Role of Reduction Targets

Many organisations measure their greenhouse gas (GHG) emissions, but measurement alone does not drive decarbonisation. Progress begins when data is turned into direction through clear reduction targets. In this article, we explore what targets are, how they are developed and the value they create for both organisations and the planet.

What are reduction targets?

Once an organisation has begun its journey of annual emissions reporting, the next step is to establish a strategy for managing and reducing those emissions. Central to this is the development of emissions reduction targets, also known as carbon reduction targets, which are measurable goals to cut emissions by a specific amount within a defined timeframe (for example, a 50% reduction by 2030).
Whether they are set by national governments, local authorities or individual organisations, these targets all serve the same foundational purpose: to mitigate climate change by defining the pace and scale at which emissions must fall. They turn ambition into time-bound action and provide the foundations for decarbonisation planning.

Types of targets

Targets can be framed in different ways. Firstly, they can be expressed on an absolute basis, reducing total emissions, or on an economic or physical intensity basis, where emissions fall relative to a financial indicator or business metric. These approaches describe how progress is measured. The timing of that progress is defined through near-term and long-term targets, which work together to create the urgency for immediate action and ambition for long-term decarbonisation.

Near-term targets

A near-term target is an emissions reduction goal that should be achieved within the next five to ten years. Think of these targets as key checkpoints on a decarbonisation journey, ensuring you are moving in the right direction.

Why they matter

Signal to stakeholders that action is underway now, not deferred to the future.
Unlock investment for decarbonisation. Some leadership teams may be unwilling to commit funding to targets that are decades in the future. Targets that need to be achieved within the next five years create urgency and make investment decisions more actionable.
Require organisations to think about optimising supply chains, improving operations and collecting emissions data early on.
Accelerated implementation of emissions reduction actions in this decade reduces future losses and damages related to climate change for people and ecosystems.

Long-term targets

A longer-term target, also known as a net zero target, is a goal to reach net zero emissions by 2050 at the latest. This typically consists of reducing emissions by at least 90% no later than 2050, and neutralising any remaining emissions with durable carbon removals.

Why they matter

Create organisational continuity by establishing goals that outlive short-term business cycles or leadership changes.
Align organisations with the global net zero goal.
Demonstrate to stakeholders that decarbonisation is on the organisation’s long-term agenda.
Provide the broader end goal that connects up near-term targets.

The science behind targets

Organisations can set their own targets, or they can choose to set science-aligned reduction targets. Science-aligned targets ensure organisations are reducing emissions at the required pace to meet the Paris Agreement, not just at the pace that feels comfortable to them. As a result, they carry greater credibility and are generally more trusted by stakeholders.

The Paris Agreement is a legally binding international treaty that aims to limit global warming to well below 2°C above pre-industrial levels (1850 – 1900), while pursuing efforts to limit warming to 1.5°C to avoid the worst impacts of climate change. A science-aligned target is calibrated to what climate science says is required to limit warming to 1.5°C or well below 2°C. To determine the required pace and scale of reductions, the Intergovernmental Panel on Climate Change (IPCC) calculates how much CO2 the world can emit while keeping warming within these limits. This is known as the remaining carbon budget. The IPCC then models emissions pathways that show how quickly emissions must fall to stay within that budget. Because some sectors are harder to decarbonise than others, different sectors follow different decarbonisation pathways. Together, these pathways ensure that reductions across organisations align with the required global temperature goal.

The business case for setting targets

Science explains the environmental necessity of targets, but organisations have strong commercial reasons to set them too. These points highlight the business value they can unlock:
Targets drive action: targets give organisations a defined destination and a structured pathway to drive down emissions across the business.
Greater stakeholder confidence: investors, suppliers and customers increasingly expect companies to measure their emissions and commit to emissions reductions.
Stronger competitive positioning: companies with credible reduction targets differentiate themselves from competitors that lack a decarbonisation plan and are therefore better placed to win tenders.
Regulatory readiness: establishing targets prepares companies for tightening climate reporting requirements.

Target-setting support

If you’re looking to set your first targets, or update existing ones, we are here to help you take the next step.