Climate targets are measurable goals an organization sets to reduce its contribution to climate change and improve climate resilience over time. They typically focus on reducing greenhouse gas (GHG) emissions across Scope 1, Scope 2, and Scope 3, increasing renewable energy use, improving energy efficiency, and setting timelines toward objectives such as net-zero.
What Are Climate Targets?
Climate targets define “what success looks like” for a company’s climate strategy. They usually include:
– A baseline year (starting point for measurement)
– A target year (deadline) and interim milestones
– The scope covered (Scope 1, 2, and/or 3)
– The reduction type (absolute emissions reduction or intensity reduction)
– The measurement methodology and boundaries
Targets can be organization-wide or product/portfolio-specific, especially for companies involved in manufacturing or operating energy-consuming infrastructure.
Why Climate Targets Matter
Climate targets matter because they convert sustainability intent into accountable action. Strong targets help:
– Align leadership, operations, and suppliers around measurable outcomes
– Guide investment decisions (efficiency upgrades, renewable sourcing, product redesign)
– Meet customer and tender requirements for decarbonization commitments
– Strengthen climate disclosures and improve investor credibility
– Reduce business risk from regulation, carbon costs, and stakeholder scrutiny
For EV charging businesses, targets often also support customer expectations that charging solutions reduce total transport emissions credibly.
Common Types of Climate Targets
Organizations typically use a mix of target types:
Absolute Emissions Reduction Targets
Commit to reducing total emissions by a fixed percentage.
– Example structure: reduce total emissions by X% by year Y
– Strong for credibility because it reflects real total impact reduction
Emissions Intensity Targets
Reduce emissions relative to activity, such as per unit produced or per kWh delivered.
– Useful for growing businesses where absolute emissions may rise while efficiency improves
– Must be defined carefully to avoid misleading outcomes
Renewable Electricity Targets
Commit to sourcing a defined share of electricity from renewables.
– Often expressed as % renewable electricity by a target date
– Requires transparent approach to procurement and clean energy matching claims
Net-Zero Targets
A net-zero target commits to deep emissions reductions across scopes, with any remaining emissions neutralized through high-quality removals or offsets according to a defined policy.
– Requires a credible transition plan and clear boundaries
– Often includes interim targets (e.g., 2030) on the path to long-term net-zero
Product and Supply Chain Targets
Targets focused on Scope 3 emissions, such as:
– Supplier engagement and low-carbon materials
– Logistics emission reductions
– Product lifecycle footprint reductions through design and circular economy principles
For manufacturing-based businesses, Scope 3 often represents the majority of lifecycle emissions.
What Makes a Climate Target Credible
Credible climate targets typically have these characteristics:
– Clear scopes and boundaries (what is included and excluded)
– Defined baseline year and calculation method
– Time-bound milestones (short and medium-term targets, not only 2050)
– A realistic transition plan with named actions and investments
– Progress reporting and governance accountability
– Consistent metrics year-to-year for comparability
Climate Targets in EV Charging Context
Common climate target areas relevant to EV charging and infrastructure providers include:
– Reducing operational electricity emissions through renewable sourcing and clean energy matching
– Lowering manufacturing emissions via material selection and energy efficiency
– Improving product lifetime and repairability to reduce lifecycle footprint (circular economy)
– Using analytics to improve uptime, reducing wasted site visits and operational inefficiency
– Reporting product footprints using standardized methods for customer procurement
Common Pitfalls
– Setting targets without defining Scope 3 boundaries or supplier coverage
– Relying on offsets instead of planning real reductions
– Choosing intensity targets that allow total emissions to grow unchecked
– Making renewable claims without explaining matching rules and evidence
– Publishing targets without reporting progress and corrective actions
Related Glossary Terms
Net-Zero Strategy
Climate Disclosures
Climate Risk Reporting
Carbon Footprint Reporting
Carbon Accounting
Carbon Intensity
Clean Energy Matching
Circular Economy
CO₂ Savings Reporting