Public sector leadership on the global climate emergency: guidance

8. Target Setting

Public bodies are required to report targets on their operational/organisational emissions. These include reducing direct emissions, where possible, to absolute zero, and reducing indirect emissions, in advance of Scotland’s 2045 net zero target.

High level organisational targets, such as a date for achieving zero direct operational emissions and targets for reducing indirect emissions, will depend on the individual circumstances of each public body, but the Scottish Government want public bodies to drive down emissions as close to zero as possible as quickly as possible. This includes addressing supply chain emissions.

The organisation’s targets should be ambitious but achievable, with a realistic pathway to achieving the targets set out by the organisation.

Baseline emissions must be clearly defined and progress against this baseline tracked to monitor performance to the target. Where there is a change in reporting boundary or emissions calculation that is deemed significant then it may be appropriate to re-baseline.

Direct Emissions Targets:

Targets on direct emissions should address:

• All areas of direct emissions that can be reduced to absolute zero.
• Areas of direct emissions that cannot be reduced to absolute zero due to the nature of the emissions sources e.g. livestock, process emissions, should be covered by a net zero target instead.
• All direct emissions targets should have interim targets so that performance is transparent. The interim targets should be a reduction from a specified baseline year.

Indirect Emission Targets:

Indirect emissions targets must focus on emissions reductions. Net zero targets for indirect emissions may be set but the organisation must specify absolute emissions reduction target(s) as well. It may be more appropriate to have a range of targets covering specific categories of indirect emissions, instead of one overarching target.

In some cases reducing certain emissions may increase others in a corresponding category e.g. increased homeworking will reduce commuting but potentially increase seasonal off-site energy consumption from heating employees’ homes, increasing homeworking emissions. Any emissions trade-offs should be recognised and fully considered in organisational planning and decision-making to ensure emissions reductions are optimised.

Indirect emissions targets must:

• have a clearly defined baseline year;
• be a reduction from this baseline year;
• be clear on the scope of which indirect emissions are included in the target; and
• cover any significant areas of indirect emissions that can be appropriately measured.^[3]

Net Zero Targets

Many public bodies have published net zero targets that cover direct and some indirect emissions. Pathways for achieving absolute zero direct emissions and for reducing indirect emissions should be part of the organisations’ wider net zero target. Any organisational net zero target must:

• be clear on what is in scope of the target;
• should cover all of the organisations’ scope 1 & 2 emissions and appropriate areas of scope 3;
• have interim reduction targets at set periods that align to the Scottish Government interim targets years; and
• the use of natural sequestration or carbon offsetting to achieve net zero targets should be mapped out, and the ‘residual emissions’ that will be sequestered should be estimated as part of net zero planning. Residual emissions must be as small as possible and any assumptions and uncertainties clearly explained. More information on natural sequestration and offsetting are given in section 10.

Reporting progress

Absolute emissions reductions and progress towards the targets must be reported in the organisation’s annual Public Bodies Duties report.

Climate change targets should also be included in public bodies’ corporate plans and annual reports. To ensure leadership focus and continued visibility of, and operational commitment to, target delivery, emissions reduction should be considered as a board level KPI with a senior leader sponsor accountable for performance and reporting.

Targets not met

Where one or more interim targets are not met the organisation will be expected to produce a catch-up plan to ensure that performance gets back on track. The catch-up plan should include:

• a full review of the organisations’ emissions;
• analysis of why the targets have been missed;
• corrective actions to address areas of underperformance;
• senior sponsor within the organisation who is accountable for delivery of actions; and
• learnings should be shared with other public bodies to help maintain strong performance across the sector.