On Thursday, April 17th, we hosted a new roundtable session, this time diving deeper into setting CO₂ reduction targets. After previous sessions focusing on CSRD regulation and Carbon Accounting, it was now time to take the next step: How to set achievable and impactful CO₂ reduction goals.
A group of sustainability, finance, and energy professionals came together to discuss the challenges and approaches in formulating reduction targets, especially for organisations nearing completion of their Corporate Carbon Footprint (CCF).
What did we discuss?
Bottom-up versus top-down approaches
We opened the session by exploring two key strategies for setting targets: bottom-up and top-down. A top-down approach starts with the long-term vision and climate ambitions of the organization and translates these into concrete targets. This method ensures alignment with strategic goals and sends a strong signal of commitment. In contrast, a bottom-up approach builds on insights from day-to-day operations, such as technical constraints, available resources, and input from departments. This helps ensure that targets are realistic, achievable, and supported across the organization. Participants recognised that while top-down targets drive ambition, a bottom-up approach is crucial for ensuring feasibility and internal buy-in.
Introduction to Science Based Targets (SBTs)
We introduced the Science Based Targets initiative (SBTi) and explained the fundamentals of setting scientifically credible reduction targets. Participants learned about the latest frameworks for aligning their goals with the 1.5°C climate ambition, such as the SBTi’s Net-Zero Standard. This framework helps organizations define near- and long-term emission reduction targets in line with climate science. It became clear that SBTs provide a robust, science-based pathway for companies aiming to credibly reduce their emissions.
Scope 3 Emissions – Data Challenges and Opportunities
One of the main topics of discussion was the challenge of calculating Scope 3 emissions. Many attendees shared that although Scope 1 and 2 are increasingly well-managed, Scope 3 data remains complex and fragmented. Accurate Scope 3 data is vital, especially when setting comprehensive reduction goals. Participants exchanged tips on supplier engagement and data collection strategies.
CO₂ Targets in the Context of CSRD
We also connected CO₂ target setting with CSRD compliance. Participants discussed how to make sure that reduction goals are auditable, realistic, and fully embedded into the CSRD reporting structure. Several organisations shared their strategies for ensuring alignment between their sustainability and finance teams when defining and reporting on reduction targets.
Guest Speaker: Julian Markus – Sustainability Lead at Jumbo
Julian Markus shared practical insights from Jumbo’s decarbonisation journey. Having lived in Singapore and witnessed both the beauty and fragility of nature, Julian is passionate about climate action. During his talk, he explained how Jumbo collaborates with suppliers and other retailers to set ambitious climate goals and collectively gather Scope 3 data.
Julian emphasised the importance of building strong relationships with suppliers to drive collective action, and he detailed the balancing act between setting ambitious goals and managing practical feasibility.
Main take-aways
- No one-size-fits-all approach: Organisations need to balance ambition with feasibility. Tailored approaches that combine top-down vision and bottom-up reality work best.
- Scope 3 complexity: Reliable Scope 3 data is critical but challenging. Collaboration across the value chain is a decisive factor.
- Embedding targets in CSRD structures: Reduction targets must be practical, measurable, and auditable to fit CSRD requirements.
- Early supplier engagement: Engaging suppliers early in the process is key to ensuring successful data collection and setting credible scope 3 targets.
- Peer learning: Participants highlighted the importance of peer learning and sharing best practices when navigating the new landscape of CO₂ target setting.
- Balancing ambition and feasibility
There is no one-size-fits-all approach. Organisations face the challenge of aligning long-term climate ambition with operational reality. A combination of top-down vision and bottom-up practicality proves to be the most effective way to set realistic and supported reduction targets.
We are proud of the success of this roundtable and want to thank all participants for their valuable contributions and especially Julian for sharing his experience with us.
Next event
This is a past event. Would you like to attend one of our events? Please keep a close eye on our website and social media or join our waitlist. We hope to see you soon!
Join our next round table about CSRD, Data & Software on Tuesday, May 27.
