{"id":8230,"date":"2026-04-08T13:40:35","date_gmt":"2026-04-08T13:40:35","guid":{"rendered":"https:\/\/verso.de\/blog\/setting-climate-targets-for-companies\/"},"modified":"2026-04-08T14:30:45","modified_gmt":"2026-04-08T14:30:45","slug":"climate-targets-companies","status":"publish","type":"post","link":"https:\/\/verso.de\/en\/blog\/climate-targets-companies\/","title":{"rendered":"Setting climate targets for companies"},"content":{"rendered":"\t<section class=\"snk-articleStage snk-section snk-bg_3\">\n\t\t<div class=\"container\">\n\t\t\t<div class=\"row\">\n\n\t\t\t\t<div class=\"col-12 col-md-6 snk-articleStage-imgCol\">\n\t\t\t\t\t<div class=\"snk-articleStage-image\">\n\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/verso.de\/wp-content\/uploads\/2026\/04\/105264.webp\" alt=\"Bild von Windr\u00e4dern in der Natur. Sie tragen u.a. dazu bei, die Emissionen von Unternehmen zu reduzieren und ihre Klimaziele zu erreichen. \" title=\"105264\" \/>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t\t<div class=\"col-12 col-md-6 snk-articleStage-contentCol\">\n\t\t\t\t\t<div class=\"snk-articleStage-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"snk-articleStage-date\">08.04.2026<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t<h1 class=\"snk-h2\">Setting climate targets for companies: how to develop well-founded reduction goals<\/h1>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t<p>\n\t\t\t\t\t\t\t\tIn this article, you will learn how companies can set well-founded climate targets, why the base year of the carbon footprint is crucial, and how to develop a reliable emissions reduction pathway.\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\t\n\t<section class=\"snk-section snk-section_noBtn\">\n\t\t<div class=\"container\">\t\n\t\t\t\n\t\t\t<div class=\"snk-textBlock\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"snk-section-headline\"> <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p>The carbon footprint is complete. For many companies, the next step seems obvious: setting climate targets. <\/p>\n<p>In practice, however, this step is often more challenging than expected. Because between a completed carbon footprint and robust climate targets lies a key question: <strong>what is actually realistic, effective, and strategically meaningful for our company?<\/strong> <\/p>\n<p>Many companies define CO\u2082 reduction targets before they fully understand their potential. This leads to targets that are either too cautious or unrealistic. Neither is helpful.  <\/p>\n<p>In this article, you will learn how companies can set well-founded climate targets, why the<strong> base year of the carbon footprint<\/strong> is crucial, and how to develop a reliable <strong>emissions reduction pathway.<\/strong><\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t<section class=\"snk-section snk-section_noBtn\">\n\t\t<div class=\"container\">\t\n\t\t\t\n\t\t\t<div class=\"snk-textBlock\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"snk-section-headline\">Common mistakes when setting climate targets<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p>When setting climate targets, many people initially think in terms of a target year and a percentage. This is exactly where the first mistake often begins. A target such as \u201c40 percent fewer emissions by 2030\u201d may sound concrete, but it is only robust if it is clear what it refers to and how it will be achieved.  <\/p>\n<p>In practice, three typical mistakes occur when defining targets:<\/p>\n<h3>1. Reducing climate targets to a single number1. Klimaziele auf eine Zahl reduzieren<\/h3>\n<p>Strong climate targets for companies consist of more than a target year and a reduction value. They also answer key <strong>questions<\/strong>: <\/p>\n<ul>\n<li>What is the company\u2019s starting point?<\/li>\n<li>Which emissions are included?<\/li>\n<li>How ambitious yet realistic is the target?<\/li>\n<li>How can progress be measured later?<\/li>\n<\/ul>\n<p>Only then does a target become a manageable foundation for climate management.<\/p>\n<h3>2. Defining reduction targets before understanding the potential<\/h3>\n<p>A carbon footprint is the foundation for any target setting. Without reliable emissions data, no well-founded climate targets can be developed. <\/p>\n<p>However, the footprint alone is not sufficient. It shows where emissions occur, but not automatically where real <strong>reduction potential<\/strong> exists. <\/p>\n<p>The biggest lever is not in the same place for every company. Depending on the business model, it may lie in energy supply, vehicle fleets, production processes, logistics, or the supply chain. <\/p>\n<p>This is why it is important to clarify before defining targets <strong>which emission sources are most relevant<\/strong>, what potential arises from them, and what is realistically feasible from an operational perspective.<\/p>\n<h3>3. Focusing only on the target year instead of the reduction pathway<\/h3>\n<p>Many companies focus heavily on the target year. However, a target for 2030 or 2040 alone says little about how emissions will decrease along the way. <\/p>\n<p>This is why a <strong>robust emissions reduction pathway<\/strong> is essential.<\/p>\n<p>A reduction pathway describes how emissions should evolve over several years. It helps define <strong>interim targets<\/strong>, measure <strong>progress<\/strong>, and avoid pushing achievement to a distant endpoint. <\/p>\n<p>A meaningful reduction pathway helps to<\/p>\n<ul>\n<li>make development over time transparent<\/li>\n<li>assess interim results more effectively<\/li>\n<li>identify deviations earlier<\/li>\n<li>manage climate targets more strategically<\/li>\n<\/ul>\n<p>This turns a climate target from a future promise into a manageable development pathway.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t<section class=\"snk-section snk-section_noBtn\">\n\t\t<div class=\"container\">\t\n\t\t\t\n\t\t\t<div class=\"snk-textBlock\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"snk-section-headline\">What makes strong climate targets<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p>Robust climate targets consist of more than a number and a target year. They are formulated in a way that provides guidance, is understandable internally, and can be managed reliably over time. <\/p>\n<p>This requires more than ambition. Strong climate targets are primarily defined by <strong>clarity and measurability<\/strong>. Key elements include:  <\/p>\n<ul>\n<li>a clear base year<\/li>\n<li>a defined target year<\/li>\n<li>a specific reduction value<\/li>\n<li>a clearly defined scope<\/li>\n<li>a transparent data foundation<\/li>\n<li>a realistic reduction pathway<\/li>\n<\/ul>\n<p>Especially for CO\u2082 reduction targets, it is important not only to define the target itself, but also to make the <strong>underlying logic understandable<\/strong>. Only then can targets be communicated internally, embedded strategically, and monitored reliably. <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t<section class=\"snk-section snk-section_noBtn\">\n\t\t<div class=\"container\">\t\n\t\t\t\n\t\t\t<div class=\"snk-textBlock\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"snk-section-headline\">The base year of the carbon footprint: what companies should consider<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p>To set climate targets, companies need a clear reference point. This is where the base year of the carbon footprint becomes critical. <\/p>\n<p>The base year is the year against which future reductions are measured. If a company aims to reduce emissions by 50 percent by 2030, <strong>it must be clear which year serves as the reference<\/strong>. <\/p>\n<p>A suitable base year should:<\/p>\n<ul>\n<li>be based on reliable data<\/li>\n<li>be methodologically sound<\/li>\n<li>be representative of the company<\/li>\n<li>not be heavily distorted by one-off effects<\/li>\n<\/ul>\n<p>This is more important than it may seem at first glance. An unsuitable base year can make target achievement appear artificially easier or unnecessarily difficult. For robust climate targets, this foundation is essential.  <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t<section class=\"snk-section snk-section_noBtn\">\n\t\t<div class=\"container\">\t\n\t\t\t\n\t\t\t<div class=\"snk-textBlock\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"snk-section-headline\">CO\u2082 reduction targets for companies: ambitious but realistic<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p>In practice, companies often face a tension: climate targets should be ambitious but must remain grounded in reality.<\/p>\n<p>A target that is too cautious fails to leverage existing potential. A target that is too ambitious quickly loses credibility if it is not viable internally. Strong target setting lies somewhere in between.  <\/p>\n<p>Key questions include:<\/p>\n<ul>\n<li>What level of reduction is plausible based on emissions data?<\/li>\n<li>Where are the biggest levers?<\/li>\n<li>Which conditions limit implementation?<\/li>\n<li>What developments are realistic in the short, medium, and long term?<\/li>\n<\/ul>\n<p>For sustainability managers, striking this <strong>balance<\/strong> is critical. Climate targets should not only sound good, but also provide real guidance within the company. <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t<section class=\"snk-section snk-section_noBtn\">\n\t\t<div class=\"container\">\t\n\t\t\t\n\t\t\t<div class=\"snk-textBlock\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"snk-section-headline\">Science-based climate targets for robustness and credibility<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p>In principle, companies are free to choose how they define their climate targets. However, more and more companies are aligning with science-based standards. Science-based climate targets, such as those defined by the <strong>SBTi<\/strong>, are characterized by the following:  <\/p>\n<ul>\n<li>alignment with the 1.5\u00b0C pathway<\/li>\n<li>clear and measurable structure (base year, target year, reduction percentage, clearly defined scope (1, 2, 3))<\/li>\n<li>use of real emissions data<\/li>\n<li>inclusion of Scope 3 (if relevant)<\/li>\n<li>immediate implementation of measures<\/li>\n<li>limited reliance on offsetting<\/li>\n<\/ul>\n<p>Not every company needs to adopt science-based targets. However, it is often worthwhile to align with the core principles of such frameworks. For companies seeking particularly robust and credible targets, this can provide valuable guidance. Those interested in exploring this further should take a closer look at SBTi requirements.   <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t<section class=\"snk-section snk-section_noBtn\">\n\t\t<div class=\"container\">\t\n\t\t\t\n\t\t\t<div class=\"snk-textBlock\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"snk-section-headline\">Setting climate targets in companies: a five-step process to an effective reduction pathway<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p>A practical process for defining targets typically looks like this:<\/p>\n<h3>Understand the carbon footprint<\/h3>\n<p>The carbon footprint shows where emissions occur and which areas are most relevant.<\/p>\n<h3>2. Assess hotspots and potential<\/h3>\n<p>Before defining targets, it is essential to understand where realistic reduction potential exists.<\/p>\n<h3>3. Define the base year and target framework<\/h3>\n<p>Determine which year serves as the reference and which emissions are included in the target.<\/p>\n<h3>4. Evaluate target options<\/h3>\n<p>Only at this stage should decisions be made about target ambition and time horizon.<\/p>\n<h3>5. Align targets internally<\/h3>\n<p>Climate targets should not be developed in isolation, but in alignment with strategy, data, and operational realities.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t<section class=\"snk-section snk-section_noBtn\">\n\t\t<div class=\"container\">\t\n\t\t\t\n\t\t\t<div class=\"snk-textBlock\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"snk-section-headline\">Conclusion: setting climate targets means making reduction manageable<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<p>Companies that want to set climate targets should not start with an isolated percentage. The key starting point is a <strong>robust carbon footprint<\/strong>, combined with a realistic understanding of internal <strong>potential<\/strong>. <\/p>\n<p>A strong target system requires <strong>a well-defined base year<\/strong>, a <strong>transparent emissions reduction pathway<\/strong>, and a target definition that is ambitious yet achievable.<\/p>\n<p>This turns CO\u2082 reduction targets into more than a communication statement. They become the <strong>foundation for effective, strategically managed climate action<\/strong>. <\/p>\n<p>If you want to develop well-founded climate targets and take the next steps in a structured way, feel free to reach out. We support you with practical and expert guidance. <\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"snk-buttons snk-buttons_noGap\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"snk-btn-secondary\" href=\"https:\/\/verso.de\/en\/demo\/\"  target=\"_blank\">\n\t\t\t\t\t\t\t<svg width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M17.3423 12.5673H5.0673C4.90208 12.5673 4.76623 12.5141 4.65975 12.4076C4.55325 12.301 4.5 12.1651 4.5 11.9999C4.5 11.8346 4.55325 11.6988 4.65975 11.5924C4.76623 11.486 4.90208 11.4327 5.0673 11.4327H17.3423L11.6 5.70004C11.4949 5.58734 11.4391 5.45533 11.4327 5.30399C11.4263 5.15266 11.482 5.01941 11.6 4.90425C11.7179 4.78351 11.8513 4.72314 12 4.72314C12.1487 4.72314 12.282 4.78212 12.4 4.90007L18.9963 11.4964C19.0718 11.5719 19.1278 11.6502 19.1644 11.7311C19.2009 11.8121 19.2192 11.9022 19.2192 12.0013C19.2192 12.1005 19.2009 12.1901 19.1644 12.2702C19.1278 12.3504 19.0718 12.4282 18.9963 12.5037L12.4 19.1C12.2884 19.2116 12.1573 19.2689 12.0067 19.2721C11.8561 19.2753 11.7205 19.218 11.6 19.1C11.482 18.9795 11.4231 18.8455 11.4231 18.6981C11.4231 18.5507 11.482 18.4212 11.6 18.3096L17.3423 12.5673Z\" \/><\/svg>\n\t\t\t\t\t\t\t<span>Let&#039;s talk<\/span><\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t<section class=\"snk-section snk-section_noBtn\">\n\t\t<div class=\"container\">\t\n\t\t\t\n\t\t\t<div class=\"snk-textBlock\">\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h2 class=\"snk-section-headline\"> <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<h5><em>* This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability. <\/em><\/h5>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\t<section >\n\t\t<div class=\"container\">\n\n\t\t\t\t\t\t<div class=\"snk-section snk-section_noBtn\">\n\t\t\t\t<div class=\"row snk-section-headline\">\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"col-12 col-md\">\n\t\t\t\t\t\t\t<h2>This might be also interesting for you:<\/h2>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t\t\t\t\t<div class=\"snk-section\">\n\t\t\t\t\t<div class=\"snk-highlightTeasers\">\n\t\t\t\t\t\n\t\t\t\t\t\t<a href=\"https:\/\/verso.de\/en\/blog\/step-by-step-to-net-zero-how-to-develop-a-climate-strategy-for-your-company\/\" class=\"snk-teaser snk-teaser_highlight\">\n\t\t\t\t\t\t\t<div class=\"snk-teaser-image\"><img decoding=\"async\" width=\"1500\" height=\"1200\" src=\"https:\/\/verso.de\/wp-content\/uploads\/2024\/04\/Klimastrategie-Eisberg.jpg\" class=\"attachment-post-thumbnail 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