How do companies set an emissions reductions target?
• It varies by company. Some companies just make an educated guess of how much they think they can reduce their emissions if they start trying. Others take careful inventory of their emissions from each of their business units and identify specific opportunities for reductions, and then add up those opportunities to inform their target. Companies also have to make strategic decisions as to what kind of target they set. Whether they target GHGs directly, or indirectly through electricity use; whether they set an absolute target or one that is relative to product units or sales; and whether they target their own emissions or those of their suppliers, are strategic decisions that depend on the specific characteristics of their business.
