Key takeaway
Targets are the most measurable element of climate strategy, and CDP scores them more rigorously than any other strategic claim. Setting a target is not enough; CDP wants to know what kind of target, against what base year, with what coverage, validated by whom, and with what interim milestones. This lesson explains the target taxonomy CDP uses, what counts as a "good" target, and how SBTi validation interacts with CDP scoring.
CDP's target taxonomy
CDP scores three types of climate targets:
| Type | What it measures | Example |
|---|---|---|
| Absolute target | Total emissions reduction in tonnes | Reduce Scope 1+2 from 100,000 tCO2e in 2024 to 50,000 tCO2e by 2030 (50 percent absolute) |
| Intensity target | Emissions per unit of output | Reduce Scope 1+2 intensity from 2.5 tCO2e per tonne of product to 1.5 tCO2e per tonne by 2030 (40 percent intensity) |
| Net-zero target | Absolute target reaching close to zero by a specific year, with residual emissions matched by removals | Net-zero across Scope 1, 2, 3 by 2050, aligned with SBTi Net Zero Standard |
CDP's scoring view: absolute targets score higher than intensity targets at the same percentage, because intensity targets allow absolute emissions to grow if business grows. A 40 percent intensity reduction with 200 percent revenue growth is a 20 percent absolute increase. CDP rewards absolute commitments more.
Net-zero targets only score at Leadership tier if they cover all material scopes (typically Scope 1+2+3 for most companies) and are validated against an external standard (most commonly SBTi Net Zero Standard).
What CDP wants per target
For each target you disclose, CDP expects:
- Type: absolute, intensity, or net-zero
- Scope coverage: Scope 1, Scope 1+2 (location or market), Scope 1+2+3, all three with FLAG (Forest, Land and Agriculture)
- Boundary: what percentage of your operations and value chain the target covers
- Base year: the reference year against which reduction is measured
- Target year: when the reduction has to be achieved
- Reduction percentage: absolute number
- Methodology: sector-decarbonisation approach (SDA), absolute contraction approach (ACA), economic intensity, etc.
- External validation: SBTi (validated, committed, or none); other standards if applicable
- Progress against the target: current year emissions vs trajectory
- Public availability: is the target published, where
A complete target disclosure earns Management to Leadership points across Q5.10 and its sub-questions. An incomplete one (target without base year, or target without progress data) caps at Awareness.
SBTi validation, the strongest external signal
The Science Based Targets initiative (SBTi) is the most widely-used external validation for climate targets. CDP rewards SBTi validation explicitly because it forces a methodological discipline that aligns with CDP's scoring expectations.
| SBTi status | What it means | CDP scoring impact |
|---|---|---|
| None / informal target | You set your own target without external validation | Up to Management tier with strong methodology disclosure |
| Committed | You have publicly committed to setting an SBTi target within 24 months but not yet submitted | Awareness to Management tier |
| Submitted, under review | SBTi has received your target for validation | Awareness to Management tier |
| Validated, near-term | SBTi has validated your near-term (typically 5-10 year) target | Management to Leadership tier eligibility |
| Validated, near-term + net-zero | SBTi has validated both your near-term and net-zero (2050 or earlier) targets | Leadership tier across the targets cluster |
| Validated, with FLAG (Forest, Land, Agriculture) | For applicable sectors, the target also covers land-use emissions | Leadership tier with cross-theme bonus |
The path most ambitious companies take is: commit, then submit within 12 months, then validated near-term, then validated net-zero. The whole journey from no target to fully-validated net-zero typically takes 18-30 months.
Analogy
Think of SBTi like a credit rating for your climate target. You can self-rate (anyone can write a number on a slide), but lenders and partners give that less weight than a Moody's or S&P rating. SBTi is the equivalent of an independent rating agency. CDP graders treat it the same way: external validation is the difference between "we say so" and "an independent body verified."
Coverage matters as much as the number
A 50 percent reduction target sounds strong. But a 50 percent reduction covering only 30 percent of your operations is weaker than a 40 percent target covering 95 percent of operations. CDP scores coverage explicitly.
For most large companies, the coverage targets to aim for:
- Scope 1+2: at least 95 percent of operations covered
- Scope 3: at least 67 percent of total Scope 3 emissions covered (this is the SBTi minimum threshold)
- FLAG (where applicable): all material commodity-driven Scope 3 covered
A target that excludes a particular geography, business unit, or scope is scored against the actual coverage. CDP graders calculate effective ambition by multiplying the percentage reduction by the coverage percentage.
Worked example: comparing two targets
Worked example
SteelCo Limited target: "30 percent absolute reduction in Scope 1+2 emissions by 2030 from a 2020 base year, validated by SBTi against a 1.5 degree-aligned trajectory, covering 100 percent of operations."
Components scored:
- Type: Absolute (high score)
- Coverage: 100 percent (high score)
- Base year: 2020 (recent, credible)
- Target year: 2030 (mid-term, allows progress tracking)
- Reduction: 30 percent (in line with SBTi 1.5C requirement for steel sector)
- Methodology: SDA (sector decarbonisation approach)
- Validation: SBTi validated near-term
- Effective ambition score: 30% × 100% = 30 points of effective reduction
ConsumerCo Limited target (weaker): "25 percent intensity reduction (tCO2e per unit revenue) in Scope 1+2 by 2030 from a 2018 base year, set internally based on best practice peer review."
Components scored:
- Type: Intensity (lower score)
- Coverage: not specified (assume 100 percent for charity)
- Base year: 2018 (older, but acceptable)
- Reduction: 25 percent (weaker headline number)
- Methodology: not specified
- Validation: none (internal only)
- Effective ambition: weaker still due to revenue growth assumption
The grader will favour SteelCo's target by a large margin even though both are 5-year horizons of the same vintage. The difference is in type (absolute beats intensity), validation (SBTi beats internal), methodology disclosure, and explicit coverage.
Net-zero and the long target
A net-zero target is worth Leadership-tier points only if it has the supporting structure. CDP looks for:
- Year: 2050 is the most common; 2040 or earlier shows greater ambition.
- Scope coverage: all material scopes including Scope 3 and FLAG where applicable.
- Residual emissions assumption: what percentage of emissions you expect to offset with removals at the target year.
- Removal strategy: what types of removals you intend to use (technological, nature-based, with quality criteria).
- Interim milestones: at least one near-term target validated by SBTi between now and 2050.
- Validation: SBTi Net Zero Standard validation.
A "net-zero by 2050" claim without these components is scored at Awareness. With them, Leadership.
A 2050 net-zero target without near-term milestones is unactionable. It is also unverifiable: a company can claim 2050 net-zero today and not change anything for 15 years. SBTi's view, adopted by CDP, is that a credible net-zero claim requires interim targets at least every 5-10 years, with the first one validated independently. The interim target is what creates accountability now. If your company has only a long-term aspiration without near-term commitments, the strategic upgrade is to commit to and validate a near-term target. This is often a 6-9 month process and unlocks Leadership tier on the targets cluster.
Progress reporting against targets
CDP asks for current-year emissions against your target trajectory. This catches companies that set ambitious targets and then quietly miss them.
The Leadership-tier disclosure includes:
- A chart or table showing baseline year, current year, and target year emissions
- The implied annual reduction rate (linear or otherwise) and your actual rate
- An honest statement of whether you are on track, ahead, or behind
- If behind, what corrective actions are being taken
A response that says "we are committed to our 2030 target" without showing progress data caps at Awareness. A response that shows the number ("at end FY25, we were 42 percent of the way to our 2030 target, two percentage points behind the linear trajectory; corrective measures include accelerated solar capex") signals Management or Leadership.
Key Takeaways
- CDP scores three target types: absolute (highest weight), intensity (lower), and net-zero (Leadership tier when fully validated)
- SBTi validation is the most widely-used external signal and unlocks Leadership-tier eligibility on the targets cluster
- Coverage matters as much as the percentage; a 30 percent reduction covering 100 percent of operations beats a 50 percent reduction covering 60 percent
- Net-zero claims require interim targets, removal strategy, and SBTi Net Zero Standard validation to score at Leadership
- Progress data against targets is mandatory for Management and Leadership tiers; an honest 'behind plan with corrective measures' answer scores higher than silence
Knowledge Check
Test what you just learned
6 questions · check each one as you go
Which target type does CDP score most highly?
What does SBTi validation provide for CDP scoring?
True or false: A 50 percent reduction target covering only 30 percent of operations beats a 40 percent target covering 95 percent of operations.
What are the SBTi minimum coverage thresholds?
Which elements does a Leadership-tier net-zero commitment need?
Select all that apply
Match each SBTi status to its CDP scoring impact.
Match each item to its pair
Validated near-term
Validated near-term + net-zero
Committed (not yet submitted)
None / informal target