Below is a resource written by Ecologi, originally appearing on their website, that on What goals can businesses set in 2024 to get one step closer to net-zero?
In this guide about climate targets and goals on the journey to net-zero, we’ll cover:
Introduction
At the start of 2024, business leaders are energetically crafting their annual strategies with a fresh focus on implementing climate action initiatives.
The way goal-setting and target-setting are approached by businesses depends on their maturity on their climate action journey. For businesses that are just starting on their goal-setting journey, there are multiple starter actions such as switching energy providers as well as pension providers to help kickstart momentum, however, as businesses mature on their climate action journey, more robust goal and target-setting must be pursued, alongside reporting their emissions inventories.
Different types of net-zero targets and goals you can set
When it comes to setting goals for your business on its route to net-zero, there are two types of goals that are relevant: science-based targets, and emissions reduction goals.
Science-based targets (SBTs) are quantitative commitments set via the SBTi Corporate Net-zero standard to reduce greenhouse gas (GHG) emissions by an amount aligned with what the latest climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming to 1.5°C above pre-industrial levels. SBTs are specific, quantified intended outcomes – which will vary for each company depending on what your company does and how ambitious your goals are.
Emissions reduction goals refer to a commitment to implement an action or initiative to achieve a reduction in Greenhouse Gas (GHG) emissions. These usually relate to inputs, and are typically achieved through a decrease in consumption, improvement in efficiency, or reduction in emissions intensity of an activity or good.
The difference between emissions reduction goals and science-based targets
| DIFFERENCES |
EMISSIONS REDUCTION GOALS |
SCIENCE-BASED TARGETS (SBTs) |
| Aiming at? |
Inputs |
Outcomes |
| SBTi Corporate Net-zero Standard alignment? |
Not required, but complementary to the Standard |
Required as part of the Standard |
| SMART alignment? |
Do not have to be SMART (Specific, Measurable, Achievable, Realistic, Timely) |
Are SMART (Specific, Measurable, Achievable, Realistic, Timely) |
| Qualitative or quantitative? |
Can be either, but tend to be more qualitative |
Quantitative |
| Scope coverage? |
Don’t have be specific about covering scopes 1, 2 and 3 |
Must cover Scopes 1, 2 and 3 |
| Verification? |
Not necessarily explicitly tied to scientific benchmarks, global climate targets or verification. |
Science-based targets undergo independent assessment to ensure they are consistent with the latest climate science. |
| Timelines? |
Timelines tend to be shorter-term (under 5 years) because the objectives are smaller and easier to achieve. |
Because of the 90% reduction in emissions across all 3 scopes, target setting usually involves setting near-term and long-term targets leading up to 2030, 2040 or 2050. |
| Ecologi platform? |
Through the Ecologi Zero Platform. |
Through Ecologi consultancy services. |
The way these two types of goals interact is important, as emissions reduction goals tend to support science-based targets. A good analogy to help depict the interaction between the two can be represented by the Strategy & Tactics relationship, where the science-based targets represent the overarching strategy and the emission reduction goals represent the tactics used to achieve that strategy.
Why are different net-zero targets and goals used?
Science-based targets
Science-based targets are essential in declaring a long-term commitment to emissions reductions. One of the Science Based Targets Initiative (SBTi)’s core requirements for a business (in most sectors) to achieve net-zero is to achieve a minimum 90% reduction in emissions. This emissions-reduction journey will not be easy, since that’s a BIG task! Imagine having to reduce your financial budget by 90% – it would require a lot of planning, researching, and implementation, over a long period. The SBTi framework ensures that targets are set to a level of ambition sufficient to mitigate the worst effects of climate change, in line with the latest science.
The SBTi reveals that while a growing number of companies have pledged to achieve net-zero emissions, the rate of action and the alignment of these commitments with scientific targets fall short.
Emissions reduction goals
While aligning with climate science, targets set against 2030 to 2050 may feel a long way away. As such, there is often a need for more urgency to initiate immediate action.
Setting interim commitments to action through the drag & drop “emissions reduction goals” function within Ecologi Zero can help engage employees and elevate the net-zero journey on the agenda. Achieving more shorter term goals can be a good mechanism for generating momentum whilst prioritising initiatives that will contribute to achieving science-based targets.
Example net-zero targets and goals you might use
Science-based targets (SBTs)
The SBTi’s Corporate Net-Zero Standard requires businesses to set both Long-term and Near-term Science-based Targets (SBTs) in order to reach net-zero in the long run.
Long-term SBTs. The Standard requires companies to directly reduce absolute emissions across scopes 1, 2 and 3 by at least 90% by 2050 or before, as compared to a base year no earlier than 2022. This means that the overall emissions produced must come down – rather than just the relative amount of emissions (e.g. by product or by revenue). They must also commit to balancing the impact of any residual emissions (up to 10% of the baseline emissions), by purchasing carbon removal credits in order to reach net-zero.
Near-term SBTs. Here are some examples of Near-term SBTs your business could set
- “Our company commits to reduce absolute scope 1 and 2 emissions 42% by 2030 from a 2022 base year, and to measure and reduce its scope 3 emissions.”
- “Our company commits to reduce absolute scope 1 emissions 42% by 2030 from a 2022 base year, to maintain zero scope 2 emissions through 2030, and to measure and reduce its scope 3 emissions.”
- “Our company commits to maintain zero scope 1 emissions through 2030, to reduce absolute scope 2 GHG emissions 42 % by 2030 from a 2022 base year, and to measure and reduce its scope 3 emissions.”
- “Our company commits to maintain zero scope 1 and scope 2 emissions through 2030, and to measure and reduce its scope 3 emissions from a 2023 base year”
Emissions reduction goals
Emissions reduction goals, which you can set directly through your Ecologi Zero account, tend to be softer or more generalised goals than your Science-based Targets. They can be helpful in setting the direction of your business’s sustainability agenda for the coming year.
It may feel overwhelming to address all environmental aspects simultaneously – that’s why Ecologi will automatically suggest goals based on your emissions hotspots so you can identify the most significant areas of improvement and focus on them initially. As you achieve success and gain momentum, gradually expand your efforts to address other areas of concern.
Here are some examples:
- “We will implement a sustainable procurement strategy that prioritises suppliers who actively track and are working to reduce their emissions.”
- “We will use pension providers that have sustainable investment policies, providing employees the opportunity to invest in pension funds that avoid fossil fuels.”
- “We will install renewable energy sources to generate electricity onsite.”
- “We will use server providers who use renewable energy to power their services.”
- “We will implement smart energy management practices including energy monitoring systems.”
How to set effective net-zero goals and targets for your business
Once you have your footprint, you will want your goals to be effective.
What makes an effective commitment?
You’re probably familiar with the SMART target-setting process. Here’s what it means for your emissions goals and targets:
Specific: Translate your reduction goals into steps that can be implemented throughout your organisation. Establish a clear action plan with specific initiatives, responsible parties, timelines, and allocated resources. Breaking down goals into smaller tasks not only makes them more manageable but also ensures that progress is continuously monitored and adjustments can be made if needed.
Measurable: It’s important to measure and monitor your progress towards your goals. Implementing an internal monitoring and reporting system will help you track progress towards your reduction goals. You should continuously measure and analyse data, review key performance indicators, and evaluate the effectiveness of your initiatives. Regular reporting to stakeholders demonstrates transparency, fosters accountability, and allows for course corrections if required.
Achievable: Engaging employees, customers and suppliers fosters a sense of shared responsibility and increases the likelihood of achieving your reduction goals. Seek feedback, conduct workshops, and collaborate with stakeholders to ensure a comprehensive and inclusive approach.
Relevant: Ensure your reduction goals align with your business’s carbon footprint. Goals should address the most significant environmental impacts and support your long-term sustainability vision. To help with this, Ecologi Zero will identify your emission hotspots and advise on actions you can take to reduce emissions from these areas.
Timely: Ecologi Zero will help you set a timeframe for achieving your reduction goals; we advise goals are completed within the upcoming reporting period. You may wish to set your own timeframe and complete goals sooner or stagger your goals throughout the year. Time-bound goals create a sense of urgency and provide a timeline for progress evaluation.
What are the most frequent goals set by SMEs?
After calculating their business carbon footprint with Ecologi Zero, businesses get to select emissions reduction goals that are tackling the key emission hotspots of their footprint. While every business will have different emission hotspots and areas of improvement, our Ecologi Zero data shows the following key goals that have been set by businesses:
- We will conduct our meetings virtually to avoid unnecessary travel.
- We will use suppliers who track their own emissions.
- We will avoid using single use products where possible.
- We will review our supply chain to ensure our suppliers are taking their own actions to reduce their footprint.
- We will use environmentally friendly cloud computing services.
- When buying office equipment, we will always choose the most energy efficient option.
- We will avoid flying for any short duration trips.
How to communicate your goals in your annual reporting
Reducing business emissions is the most important step on your journey to net-zero, and once you’ve set achievable goals based on your emissions hotspots, you can start creating your yearly report. With Ecologi Zero, you can create your yearly report that will automatically show the emissions reduction goals you’ve set so you can start sharing your progress transparently (even if you’re not perfect).
Ready to start setting emission reduction goals?
If this article has inspired your business to start its climate journey and set emissions reduction goals, then why not get started today?
Fewer than 250 employees? Sign up to Ecologi Zero.
250 or more employees? Schedule a call with our team to discuss a bespoke solution using the form below.
