What are Carbon Reduction Targets?

What are carbon reduction targets?

As the pressure to reduce greenhouse gas emissions intensifies, businesses are adopting carbon reduction targets to integrate sustainability into their operations. These targets are commonly categorised into three main types:

1. Carbon Neutrality:

Balancing carbon emissions with an equivalent amount removed from the atmosphere

2. Net-Zero Emissions:

Reducing emissions to nearly zero with minimal offsets.

3. Science-Based Targets:

Aligning reductions with climate science, often guided by the Paris Agreement.

What are the different types of carbon reduction targets?

Carbon emissions contribute to global warming and environmental harm, so setting reduction targets helps mitigate climate change impacts. We take a look at the common types of targets aimed at measuring and reducing carbon emissions:

Carbon neutrality

Carbon neutrality involves offsetting an organisation’s total carbon dioxide emissions. Businesses achieve this by purchasing carbon credits from initiatives such as reforestation or advanced technologies like carbon capture and storage. It’s the first step on the journey to sustainability.

Net-zero emissions

Net-zero takes carbon neutrality further by significantly reducing emissions. Companies implement measures such as switching to renewable energy, adopting electric vehicles, and minimising waste to nearly eliminate their carbon footprint.

Science-based targets

Guided by the Science-Based Targets initiative (SBTi), these targets help companies develop emissions reduction plans grounded in climate science. Businesses adopting these targets often see increased profitability, enhanced reputation, and regulatory compliance.

How are carbon reduction targets set and measured?

Setting, achieving, reporting, and improving targets are all part of a successful carbon reduction plan. But how do companies and countries determine feasible goals, and how do they measure them? 

Types of carbon accounting and reporting frameworks:

GHG Protocol:

The GHG protocol offers help for businesses to measure and report their greenhouse gas emissions using verified methods, such as calculation support, training, industry guidance, reporting standards and accounting. A wide range of organisations use GHG Protocol, from public sector operations, to private businesses and city-wide level. It also addresses the different scopes, including Scope 1, 2 and 3. This framework aims to help organisations reach the targets set out in the Paris Agreement, which is to maintain a rise in global temperature below 1.5 degrees. 

CDP

Previously known as the Carbon Disclosure Project, CDP is a framework or platform designed to help companies disclose the environmental impact of their carbon emissions. They offer workshops for businesses looking to reduce carbon emissions from a beginner perspective and require applicants to gather a specific set of relevant data to submit as part of an online application in order to receive a CDP score with feedback on how to improve their carbon reduction efforts. Areas they can help with include supply chain considerations as well as global state of the industry white papers. 

Absolute emissions vs. carbon intensity

Absolute Emissions:

Absolute emissions examine a specific company's yearly emissions of greenhouse gases into the environment. This would include the total amount of emissions released as a business, or it could focus on a specific source, including transport. We tend to measure absolute emissions in metric tons of carbon dioxide equivalence (MT CO2e).  

Carbon Intensity:

Carbon intensity, on the other hand, examines very specific activities, including a particular process, such as new company hires or livestock carbon emissions. These measurements may be taken in CO2 emissions per unit of energy produced (CO2e/kWh) or by another method specific to the type of activity taking place.  

The challenges of achieving carbon reduction targets 

With targets in place and frameworks to measure progress, the next step is implementation, but what hurdles might we come up against when attempting to reduce carbon emissions? We take a look at the key obstacles to achieving carbon reduction: 

Technological limitations 

While data is being heralded as the window onto our carbon footprints, there's still the matter of making sense of all the data we gather. The answer? Many believe it lies in machine learning and artificial intelligence (AI). AI undeniably holds the key to unlocking the noise of big data, streamlining predictive actions and even automating carbon reduction activities so they can happen more readily and more quickly. However, AI is still in its fledging stages so more implementation is required - and the technology comes at a cost.  

Cost factors  

Even if the technology is available to reduce carbon emissions, implementing it can be a costly hurdle to overcome. Investing in technology that will help to reduce carbon emissions can incur costs, such as investing in renewable energy technology, developing new supplier relationships, and moving away from historically cheaper fossil fuels.  

Regulatory compliance  

With regulations constantly changing and target goalposts moving, it can be difficult to keep up with policy changes and target increases. Some businesses may invest in specialist consultancy services or even employees to advise them on policy changes in order to avoid the penalties associated with non-compliance.  


Carbon reduction targets, such as carbon neutrality, net-zero, and science-based goals, are essential for addressing climate change and aligning business operations with sustainability. Frameworks like GHG Protocol and CDP provide robust methodologies for setting and measuring progress, while businesses navigate challenges like technological costs and regulatory hurdles. By prioritising these targets, companies can enhance profitability, strengthen their brand, and contribute to a greener future.