The CarbonNeutral Protocol Index

3.3 Setting internal reduction targets

The CarbonNeutral Protocol does not mandate what level of internal reduction should be targeted in order to achieve CarbonNeutral status with the exception of those outlined in section 3.1. As outlined in Guidance 4.3, organisations are encouraged to use established management tools to identify the appropriate balance between internal reductions and the use of offsets to achieve carbon neutrality cost-efficiently and in ways that deliver strategic value.

While the MAC curve approach (see Guidance 4.3) helps an organisation prioritise its reductions options, it does not necessarily align the organisation’s internal reduction efforts with the UNFCCC Paris Agreement’s call for global emissions reductions to limit average global temperature rise to well below 2oC above pre-industrial levels, in order to significantly reduce the risks and the impacts of global climate change.

Therefore, organisations should consider the option of establishing internal reduction targets that align with scientifically established emission reduction trajectories that can deliver a stable climate. For example, the Science Based Target (SBT) initiative, a collaborative initiative by CDP, World Resources Institute (WRI), the World Wide Fund for Nature (WWF) and the United Nations Global Compact (UNGC), provides guidance on science-based target setting to encourage and support companies in the transition to a low-carbon economy.