Set Clear Targets to Achieve More

Leaders face increasing pressure from a growing number of fronts to set sustainability targets and reduce their carbon footprint. However, as many are finding it is one thing to make company sustainability claims and quite another to set achievable targets that consistently deliver on stakeholder expectations. Converting sustainability ideas into tangible results can be challenging, given the complexities of supply chains, technological limitations, and the need for cultural shifts within organizations. However, by setting clear targets and embracing sustainable business models, companies have the opportunity to create competitive separation and maximize both impact and profits. In this blog, we'll explore the significance of setting clear targets and leveraging best practices to ensure continuous progress on your sustainability journey.?

Craft Clear and Measurable SMART Goals?

Achieving meaningful results in sustainability starts with setting clear targets. As the world faces pressing environmental challenges, leaders need to align their team's efforts towards specific, measurable, achievable, relevant, and time-bound (SMART) goals . These goals should track to Science-based Targets (SBT) from the Science Based Targets initiative (SBTi), which are backed by the latest climate change science. SBT targets play a crucial role in helping companies decarbonize the global economy effectively, providing a clear roadmap for greenhouse gas (GHG) emissions reduction and guiding companies through the complexities of the global energy transition.?

Incorporate Key Goal Ingredients?

To implement SMART Sustainability Goals effectively, companies should consider the following key ingredients:?

• Tracker Name: Identify the sustainability metric you aim to track. Common metrics include GHG emissions reduced, cost reduced, time saved, waste reduced, materials recycled, gas reduced, projects completed, and water reduced.?
• Unit: Determine the measurement unit of the sustainability metric, such as metric tons, tons, dollars, or hours.?
• Start Value: Establish the sustainability metric unit value at the onset of your measurement period. Many companies start metrics at zero at the beginning of each reporting period to ease communication and clarify the number of metric units that need to be achieved during the measurement period.?
• Goal Value: Set the sustainability metric unit value at the conclusion of your measurement period. For instance, many companies break down the number of GHG emissions reductions needed annually to achieve their SBTi 2030 near-term targets.?
• Start Date: Define the sustainability metric value start date of your measurement period. Teams typically track their start date to mirror their financial reporting period.?
• Goal Date: Determine the sustainability metric value end date of your measurement period. For instance, if a company's financial reporting is based on a calendar year, it is best to have sustainability reporting goal dates follow suit for ease of planning, regulatory reporting, and year-over-year comparisons.?
• Update Frequency: Specify the time duration in which teams will update metrics. For example, teams typically track GHG emissions reduced annually, while a growing number of companies are tracking project statuses and tasks in real-time.?

Seize the Opportunity to Address Scope 3 Emissions?

A significant challenge lies in the fact that only 38-percent of the world’s largest public companies claim to cover all scope 3 GHG emissions, their upstream (supplier) and downstream (post-sale product use), according to global collective, Net Zero Tracker . This presents a daunting environmental data collection mountain that we must collectively climb. However, it also presents an exciting rare generational opportunity for leaders to differentiate their companies and reduce GHG emissions throughout their value chains. By committing to reduce their environmental footprint, companies can create new value by contributing to the reduction of GHG emissions in their value chains.?

Maximize Profits Through Sustainable Practices?

Companies that embrace sustainable practices and demonstrate GHG emissions reductions not only contribute to the environment but also create greater value for their customers. By assisting customers in meeting their public sustainability goals, companies can enhance consumer goodwill and drive tangible sales improvements. Moreover, as the true cost of GHG emissions becomes more visible through the daily impact of climate change, the value of GHG emissions reductions becomes increasingly apparent. This realization is prompting executives to reconsider purchasing expensive carbon offsets in the open market. However, partnering with existing suppliers or greener suppliers that can identify and execute GHG emissions reductions projects is a more cost-effective and sustainable solution.?

Embrace Sustainability for Lasting Impact?

Setting clear sustainability targets and integrating them into core business strategies is paramount for companies seeking meaningful results in sustainable business performance. By charting a practical path forward, embracing sustainable business models, and aligning with Science-based Targets, companies can achieve more significant and lasting impact on the environment and society while maximizing profits. Embracing sustainability is not only a moral imperative but also a strategic advantage that sets companies apart as responsible and forward-thinking leaders in today's global marketplace. With clear targets and sustainable practices, businesses can pave the way for a brighter, greener, and more profitable future for all.?