About CO2 Reduction Targets

CO₂ reduction targets define how much your organisation intends to reduce its greenhouse gas emissions by a specified year. In the Reduction Planner, targets are based on a completed CO₂ report and can be set for selected scopes and organisational units.

Before you create a target

You need a completed CO₂ report. The selected report provides:

• the baseline emissions;

• the reporting year;

• the available organisational units; and

• the scopes that can be included in the target.
  
  

Choose a baseline report that reflects the organisational boundary you want to manage. A target can only include organisational units for which the underlying report contains emissions data.

If the target is intended for SBTi submission, do not automatically use an older historical report as the target base year. Under SBTi Corporate Net-Zero Standard V2.0, the target base year must accurately reflect the company’s current structure and activities and be based on a GHG Protocol-aligned inventory. SBTi: Target base year assessment

Create a reduction target

Within a Reduction Planner plan, create a new target and define:

• the target name;

• the baseline report and reporting year;

• the organisational units included;

• the relevant emissions scopes;

• the target type;

• the target year; and

• the intended reduction pathway.

You can create multiple targets in one plan. For example, you may use separate targets for Scope 1 and 2, Scope 3, or different organisational units.

Select the target boundary

The target boundary defines which emissions are included in the target.

When you create the target, select the relevant scopes and organisational units. These settings determine the emissions total from which the target is calculated.

Use a clearly defined boundary to ensure that your target remains comparable over time. If you later change the baseline report, the selected units or the included scopes, review the target carefully before confirming it.

For SBTi-aligned target setting, organisational and operational boundaries are a foundational requirement. SBTi V2.0 also requires targets to be based on the company’s physical GHG inventory; where applicable, this includes the location-based Scope 2 method. SBTi: Target setting

Choose the target type

Absolute reduction target

An absolute, or nominal, reduction target is based on total baseline emissions. It defines how much the organisation intends to reduce its total CO₂e emissions by the target year.

Use an absolute target when you want to manage total emissions independently of company growth or contraction.

In the Reduction Planner, you can choose an available standard pathway, such as a 1.5°C or well-below-2°C pathway, or define a custom reduction rate.

Intensity-based reduction target

An intensity-based target relates emissions to a business metric. The Reduction Planner currently supports:

• emissions per revenue; and

• emissions per employee.

Use an intensity target to understand how efficiently your business operates as it grows or changes. For example, total emissions may increase during expansion while emissions per employee or per revenue decrease.

Intensity targets in the Reduction Planner are primarily internal management metrics. They should not be presented as SBTi-compliant unless they match an applicable SBTi sector-specific method

Define the target pathway

The target pathway shows the expected emissions trajectory from the baseline year to the target year.

For nominal targets, the Planner initially creates a linear pathway. You can adjust the pathway where it needs to reflect known business developments.

For example, a company may expect little change in the first years but a significant decrease after a planned investment. Adjusting the pathway makes this timing visible while keeping the target outcome unchanged.

Use a custom pathway only when the assumptions are documented and plausible. The end value must still match the selected reduction target.

SBTi context

The Reduction Planner supports the technical preparation and documentation of targets. It does not validate SBTi compliance.

Under SBTi Corporate Net-Zero Standard V2.0:

• near-term targets cover a five-year target cycle;

• Scope 1 and Scope 2 near-term targets are required for all companies;

• Scope 3 near-term targets are required for Category A companies and optional for Category B companies;

• Scope 3 targets must cover significant Scope 3 categories; and

• an optional net-zero target combines near-term and long-term targets across Scope 1, Scope 2 and Scope 3. SBTi Corporate Net-Zero Standard V2.0: Executive summary

SBTi V2.0 also offers target-setting approaches that can include absolute reduction, sector-specific emissions intensity or asset-transition approaches. The appropriate method depends on the company’s sector, emissions profile and applicable SBTi requirements. SBTi: Target setting

Review a changed target

If the underlying CO₂ report changes, the Reduction Planner updates the linked data and flags the target for review.

Review the following before confirming the target:

• organisational units;

• included scopes;

• baseline emissions; and

• the resulting target pathway.

Material structural or methodological changes can also require an SBTi target-base-year recalculation and revalidation. SBTi: Target base year assessment

Important limitations

The Reduction Planner does not automatically:

• verify SBTi scope-coverage requirements;

• determine whether Scope 3 categories are significant;

• apply sector-specific SBTi pathways;

• assess FLAG requirements; or

• validate a target with SBTi.

A 1.5°C or well-below-2°C option in the product does not by itself make a target SBTi-validated.

SBTi V2.0 is being introduced through transition arrangements. Version 1 remains available for target setting until the end of 2027 for companies using that route. Before submitting a target, confirm which SBTi standard, sector guidance and validation requirements apply to your organisation. SBTi Corporate Net-Zero Standard V2.0: Executive summary

Frequently asked questions

Can I set several targets in one plan?
Yes. You can create separate targets for different scopes, organisational units or time horizons.

Should I choose an absolute or intensity target?
Choose an absolute target to manage total emissions. Choose an intensity target to monitor emissions relative to revenue or employee numbers. Where an SBTi target is intended, confirm the applicable SBTi method before choosing the target type.

Why is my target marked for review?
A linked baseline report, scope or organisational unit has changed. Review the resulting emissions total and pathway before confirming the target.

Does creating a target make us SBTi compliant?
Setting an SBTi alligned Target is the first step. The Reduction Planner supports target preparation and documentation. SBTi compliance depends on the applicable standard, sector guidance, complete evidence and the relevant validation process.