Why Carbonhound recommends that companies set Absolute Targets?

Overview

Carbonhound recommends every company set Absolute Targets for one simple reason. As a society we only have so much carbon that we can emit into our atmosphere before the climate impacts are disastrous. Every business needs to do its part to limit its total emissions every year in order to ensure that we don’t create irrevocable change in our environment.

1. It helps companies attack the core problem of climate change

Unlike intensity metrics that take a ratio of the total emissions and divide it by an intensity metric (like # of employees or revenue), absolute targets are only concerned with the increase and decrease of total carbon emissions from business operations.

It is very plausible (especially for growing businesses) that your intensity metrics will decrease as your business grows but your absolute (total) emissions will increase. The graph here illustrates this:

2. Increases credibility to stakeholders and clearer communication

Absolute emissions is part of the language of government officials and the sustainability profession. Alignment to an absolute target will differentiate your business by giving you authority and credibility.

For instance, on a federal level, the Canadian government promises to “reach its emissions reduction target of 40 percent below 2005 levels by 2030”. On a provincial level, the Ontario government vows to “reduce greenhouse gas emissions by 80 per cent below 1990 levels by 2050”. These are all absolute based targets.

Our recommendation: Always set an absolute target but use intensity based targets to help understand how you are progressing.

• Intensity based metrics allows you to compare their progress and goals.
• Intensity based metrics are better for managerial purposes  

This is why we always provide the option for companies to add absolute targets in conjunction with intensity based metrics.