Drawing up a reduction pathway: a guide for businesses
Direct answer
A reduction pathway is a concrete plan in which an organisation sets out how much its own CO2 emissions will fall in steps, from a chosen base year to a target year. It names the interim milestones and the measures per scope that make the decline happen. This turns an abstract climate ambition into a verifiable trajectory with years, figures and owners.
- Clear definition
- Data-driven assessment
- Risks and opportunities visible
- Practical next steps
Drawing up a reduction pathway: scattered information versus Energy Intelligence
Customers, banks and legislation increasingly require businesses to show demonstrable CO2 reductions. A loose promise no longer suffices: they want to see what your current emissions are and how they will fall. A reduction pathway makes that visible. It matters to any organisation that falls under the CSRD, takes part in tenders with sustainability requirements, or applies for financing where the bank asks for a transition plan.
- A reduction pathway rests on four building blocks: a base year as the baseline measurement, a target year, interim milestones and measures across scope 1, 2 and 3.
- You draw one up by first measuring your footprint, then choosing targets, planning measures and monitoring progress every year.
- Customers, banks and the CSRD ask for a reduction pathway; the biggest pitfall is a paper target without measures, or a pathway that leans mainly on offsetting.
Insight
Traditional approach
Information is scattered across portals, documents, invoices or separate spreadsheets.
Modern approach
Data, context and interpretation are brought together into a clear decision picture.
Decision-making
Traditional approach
Choices are made based on averages, assumptions or occasional analyses.
Modern approach
Scenarios, KPIs and current measurement data make the trade-off more concrete and repeatable.
Follow-up
Traditional approach
Actions often stay non-committal or disappear into separate reports.
Modern approach
Follow-up actions, monitoring and reporting are linked to the same energy data.
What does a reduction pathway consist of?
A reduction pathway starts with a baseline measurement: you map your current emissions in line with the GHG Protocol, split across scope 1 (own sources), scope 2 (purchased energy) and scope 3 (the value chain). The year of that measurement often becomes the base year. Next, you choose a target year and an end goal, for example climate neutrality. Between base year and target year you set interim milestones, so progress can be tested each year. For every step you name measures: making buildings more sustainable, electrifying transport, green procurement or agreements with suppliers. The pathway is only complete once every decline is backed by a concrete measure.
- A base year serves as the baseline; under the GHG Protocol you measure scope 1, 2 and 3.
- A target year and end goal give the pathway an endpoint, such as climate neutrality.
- Interim milestones make progress testable each year.
- You link every planned reduction to a concrete measure.
When will you encounter it?
You encounter a reduction pathway as soon as an external party asks for evidence. Under the CSRD, larger companies must publish a transition plan in line with standard ESRS E1, stating reduction targets relative to a base year. If you want targets aligned with climate science, the Science Based Targets initiative offers a framework: a near-term target for scope 1 and 2 towards 2030 and a net-zero target for scope 1, 2 and 3 by 2050 at the latest. The Dutch Climate Act sets the broader context: 55 percent lower emissions in 2030 compared with 1990, and climate neutrality by 2050. Tenders and financiers apply similar requirements.
- The CSRD requires larger companies to publish a transition plan under ESRS E1.
- The Science Based Targets initiative tests targets against a 1.5-degree pathway.
- The Dutch Climate Act aims for 55 percent lower emissions in 2030 and neutrality by 2050.
- Tenders and banks increasingly ask for a substantiated reduction pathway.
How do you draw up a reduction pathway?
Start with a reliable footprint, because without a sound baseline any target is guesswork. Fix the base year and the measurement boundaries and keep the source data. Then choose an end goal and interim milestones that suit your sector and what customers or legislation require. Translate each milestone into measures with an owner, a schedule and a budget. Then measure again every year and compare against the pathway. If your organisation changes substantially, for example through an acquisition, you recalculate the base year so the comparison stays fair. Report the progress, even when a target is not met.
- Measure your footprint first and fix the base year and measurement boundaries.
- Choose an end goal and interim milestones that suit your sector and requirements.
- Give every measure an owner, a schedule and a budget.
- Measure again every year and recalculate the base year after major changes.
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