The challenge of connecting climate benefits with corporate climate targets and global net zero ambition

Companies are under increasing pressure to reduce their carbon footprints and contribute to climate change mitigation. Frameworks such as the SBTi Net-Zero Standard and ISO 14068-1 provide guidance for setting corporate climate targets with the focus on reducing carbon footprints of the subject and offsetting emissions that cannot be reduced. Despite their widespread adoption, the impact of corporate climate targets on climate change mitigation remains unclear due to challenges in translating their required actions into development toward global net zero emissions. Climate target frameworks can also be restricted in their perspective if they overlook the potential of companies to create climate benefits outside of reducing their own scope 1–3 emissions. This study explores climate benefits from a systemic perspective and uses two case studies applying a carbon handprint methodology to demonstrate problematics related to footprint-focused climate targets. Challenges in incorporating the assessment of climate benefits within corporate climate targets are identified. Improvements to corporate climate targets and assessment of climate benefits are proposed based on the findings.