Evolution of Corporate Climate Targets

The document advocates for transition-specific alignment targets—sector-specific metrics like zero-emission vehicle sales—to overcome the limitations of traditional GHG emission reduction targets, particularly regarding scope 3 emissions. It identifies risks in current GHG reporting, such as creative accounting and inadequate 'spend method' calculations, and recommends that standard setters develop consistent definitions and sectoral pathways to integrate these targets into national regulations and voluntary frameworks.

• Traditional short-term scope 3 GHG targets face several limitations, including the risk of 'creative accounting' through carbon credits or unaligned technologies, and the 'spend method' which fails to account for lower-carbon procurement by linking reductions to spending cuts.
• Transition-specific alignment targets are sector-specific metrics that track progress in key transitions, such as near-zero-emission steel procurement, and are considered feasible for addressing the majority of scope 3 emissions in the agriculture, fashion, technology, and automotive industries.
• To implement these targets, the report recommends that standard setters establish clear definitions for terms like 'plant-based products', create scientific sectoral pathways for indicators, and ensure targets cover scopes 1, 2, and 3.

APA

NewClimate Institute (2025). Evolution of Corporate Climate Targets. http://www.newclimate.org/resources/publications/evolution-of-corporate-climate-targets

Chicago

NewClimate Institute. Evolution of Corporate Climate Targets. 2025. http://www.newclimate.org/resources/publications/evolution-of-corporate-climate-targets.

Wikipedia

{{cite report |author=NewClimate Institute |title=Evolution of Corporate Climate Targets |date=21 January 2025 |url=http://www.newclimate.org/resources/publications/evolution-of-corporate-climate-targets |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2025evolution, author = {{NewClimate Institute}}, title = {{Evolution of Corporate Climate Targets}}, institution = {NewClimate Institute}, year = {2025}, month = jan, url = {http://www.newclimate.org/resources/publications/evolution-of-corporate-climate-targets}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }