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Measure & Report  ·  1.2.3

Climate Target Setting

Climate targets translate emissions inventory data into forward-looking commitments that signal ambition, guide strategy, and create accountability. The distinction between carbon neutral, net-zero, and science-based targets matters enormously — each implies a different level of rigor, offset reliance, and scope coverage. The maturity pathway progresses from informal aspirations through validated science-based near-term and long-term targets aligned with a 1.5°C pathway.

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Self-Assessment

Select where your organization currently operates and where you want to get to. There is no obligation to reach "Leading Org." — choose the target that is right for your business context and investment capacity.

📍 Current Level
🎯 Target Level
Select your current and target levels above to map your assessment on this initiative.
Fundamental
Market Standard
Above Average
Leading Org.

Technology

  • High-level emissions reduction aspiration or pledge published without quantified methodology
  • GHG Protocol mitigation goal standard reviewed to understand target types and requirements

Process

  • Establishing a baseline year for target-setting with documented rationale for year selection
  • Determining target boundary: which scopes, emission sources, and geographies are included
  • Distinguishing between absolute reduction targets and intensity targets — and the implications of each

Financing

  • Internal sustainability team develops initial target framework; no external validation required
  • Baseline inventory investment is the primary prerequisite for any meaningful target-setting

Technology

  • Fundamental Technologies +
  • SBTi near-term science-based target submitted and validated (covering Scope 1, 2, and material Scope 3)
  • Carbon neutral certification pursued (PAS 2060 or equivalent) for specific products or operations

Process

  • Submitting near-term SBTi target: typically 42–50% absolute Scope 1 and 2 reduction by 2030 vs. baseline
  • Setting a Scope 3 near-term target covering at least 67% of Scope 3 emissions
  • Publishing targets in CDP response, sustainability report, and company website with baseline and methodology

Financing

  • SBTi submission fee and external advisor support for target development ($20K–100K)
  • Targets published publicly, creating reputational accountability and investor expectation management

Technology

  • Market Standard Technologies +
  • SBTi long-term net-zero target validated under the SBTi Net-Zero Standard (90–95% reduction by 2050 or earlier)
  • FLAG (Forest, Land, Agriculture) science-based target set for companies with significant land-use emissions

Process

  • Committing to SBTi Net-Zero Standard: near-term + long-term targets covering all scopes with offset use governed by standard rules
  • Developing a detailed decarbonization roadmap with annual milestones, investment requirements, and owner accountability
  • Reviewing and updating targets after significant business changes (M&A, divestitures, business model shifts)

Financing

  • Decarbonization roadmap quantifies total capital required to achieve targets, informing multi-year capital planning
  • SBTi validation publicly communicated to investors as evidence of credible transition planning

Technology

  • Above Average Technologies +
  • Targets fully integrated into enterprise risk management, financial planning, and executive compensation systems
  • Scenario-tested targets: stress-tested against 1.5°C, 2°C, and policy delay scenarios with financial impact quantification

Process

  • Achieving interim milestones ahead of schedule and publicly reporting outperformance vs. committed trajectory
  • Voluntarily updating targets to higher ambition as decarbonization technology and business performance allow
  • Engaging peers, customers, and policymakers on science-based target adoption and methodology development

Financing

  • Target achievement directly linked to CEO and executive team compensation via sustainability-linked pay structure
  • Validated targets underpin access to sustainability-linked bonds, loans, and preferential insurance terms

Related Pathways

← All Pathways 5.2.1 Voluntary Frameworks 5.2.2 Regulatory Reporting 5.1.1 Emissions Inventory