Key Points
- An absolute target caps total emissions regardless of business growth; an intensity target allows total emissions to rise if output grows faster.
- ESRS E1 paragraph 34(a) requires disclosure in absolute value and, where relevant, in intensity value.
- The SBTi requires absolute reductions of at least 4.2% per year for near-term Scope 1 and 2 targets aligned with 1.5 °C pathways.
- Use an absolute target to demonstrate real-world emission cuts and an intensity target to track operational efficiency across periods of expansion.
Side-by-side comparison
| Dimension | Absolute emissions target | Intensity emissions target |
|---|---|---|
| Unit of measurement | Tonnes of CO₂e (total reduction from a base year) | Tonnes of CO₂e per unit of revenue, production volume, FTE, or other denominator |
| Effect of business growth | Growth increases the difficulty of meeting the target because total output rises | Growth can dilute the ratio, making the target easier to meet even when total emissions increase |
| ESRS E1-4 status | Primary disclosure; paragraph 34(a) mandates absolute values for all GHG reduction targets | Supplementary disclosure; permitted where relevant, but the corresponding absolute figure must still be provided |
| SBTi acceptance (near-term) | Required for Scope 1 and 2 under the absolute contraction approach (ACA) | Physical intensity targets accepted for certain sectors under the Sectoral Decarbonisation Approach (SDA); economic intensity targets are not accepted |
| Paris Agreement alignment check | Direct comparison against carbon budgets; the total drops or it does not | Requires conversion to absolute terms before alignment can be assessed |
| Common denominator choices | Not applicable (single total figure) | Revenue (EUR M), production volume (tonnes of product), square metres of floor area, number of employees |
Decision rule: Set an absolute target to demonstrate that the entity's total GHG emissions will decrease in line with a carbon budget. Set an intensity target alongside the absolute target to show efficiency gains when the business is expected to grow and stakeholders need to distinguish operational improvement from volume effects.
What is Absolute Emissions Target vs Intensity Target?
The distinction surfaces the moment the assurance provider reviews the entity's climate transition plan. An entity reporting only an intensity reduction (say, a 30% cut in CO₂e per EUR M of revenue by 2030) may still project rising absolute emissions if revenue growth outpaces the efficiency gain. ESRS E1 paragraph 34(a) closes this gap by requiring the absolute figure even when the entity has set only an intensity target. The assurance provider performing a limited assurance engagement checks whether the sustainability statement includes both disclosures.
Where the entity holds a validated science-based target, the SBTi's near-term criteria (v5.3, Section 5) require that Scope 1 and 2 targets follow the absolute contraction approach. Accepting a client's assertion that its intensity-only target is "science-based" without verifying the SBTi validation letter creates a misstatement risk in the transition plan disclosure. The engagement team confirms the target type, the validation status, and whether the base year and boundary match the figures in the ESRS datapoint reported under E1-4.
Worked example
Client: Italian food production company, FY2025, revenue EUR 67M, IFRS reporter, first-time CSRD reporter. Rossi operates two processing plants (Milan and Naples) and sources raw materials from across the EU. Scope 1 emissions come from natural gas combustion at both plants. Scope 2 emissions come from purchased electricity.
Absolute target
Step 1 — Establish base year emissions
Rossi's base year is FY2022. Scope 1 was 8,400 tonnes CO₂e and Scope 2 (location-based) was 3,200 tonnes CO₂e. Combined base year total: 11,600 tonnes CO₂e.
Documentation note: record base year, boundary (Scope 1 and 2 combined), emission figures by scope, and the source of activity data (gas invoices, electricity invoices). Confirm the base year has not been restated since the target was set.
Step 2 — Define the absolute target
Rossi commits to reducing combined Scope 1 and 2 emissions by 42% from FY2022 levels by FY2030. Target-year ceiling: 6,728 tonnes CO₂e. The 42% figure aligns with the SBTi's 1.5 °C absolute contraction pathway (minimum 4.2% linear reduction per year over ten years).
Documentation note: record the percentage reduction, the target-year ceiling in tonnes, the alignment pathway referenced, and whether the SBTi has validated the target. File the SBTi validation letter or target dashboard confirmation.
Intensity target
Step 3 — Select the denominator and calculate the base year ratio
Rossi selects tonnes of finished product as its physical intensity denominator. FY2022 production volume was 45,000 tonnes. Base year intensity: 11,600 / 45,000 = 0.258 tonnes CO₂e per tonne of product.
Documentation note: record the denominator selected, the rationale for choosing physical output over revenue, and the base year ratio calculation. Confirm production volume to internal production records.
Step 4 — Define the intensity target and project the absolute consequence
Rossi targets a 35% reduction in emission intensity by FY2030, bringing the ratio to 0.168 tonnes CO₂e per tonne of product. However, Rossi projects FY2030 production volume of 62,000 tonnes (driven by a new Naples production line). At the target intensity, absolute emissions would be 0.168 x 62,000 = 10,416 tonnes CO₂e. That exceeds the absolute target ceiling of 6,728 tonnes by 3,688 tonnes.
Documentation note: record the intensity target, the projected denominator, and the resulting absolute figure. Flag the gap between the intensity-implied absolute and the absolute target ceiling. This disclosure is required under ESRS E1 paragraph 34(a).
Conclusion: the worked example shows that Rossi's intensity target and absolute target produce conflicting FY2030 projections. If the engagement team had tested the intensity target in isolation without converting it to absolute terms, the 3,688-tonne gap would go unreported, and the sustainability statement would present an internally inconsistent transition plan.
Why it matters in practice
- Entities disclose an intensity target without providing the corresponding absolute value for the target year. ESRS E1 paragraph 34(a) explicitly requires the absolute figure even when the primary target is intensity-based. Omitting it produces an incomplete ESRS datapoint that the assurance provider flags as a missing mandatory disclosure.
- Teams accept a client's claim that an intensity-only target qualifies as "science-based" without checking the SBTi validation status. The SBTi's near-term criteria (v5.3, Section 5) require an absolute contraction approach for Scope 1 and 2. Physical intensity targets are accepted only for specific sectors under the Sectoral Decarbonisation Approach, and economic intensity targets (per EUR M revenue) are not accepted at all.
Related terms
Frequently asked questions
What is the difference between an absolute emissions target and an intensity target?
An absolute target sets a fixed ceiling on total GHG emissions in tonnes of CO₂e, measured against a base year. An intensity target expresses emissions as a ratio per unit of output or activity (for example, tonnes CO₂e per tonne of product). ESRS E1 paragraph 34(a) requires entities to disclose targets in absolute value and, where relevant, in intensity value alongside the corresponding absolute figure.
Can I set only an intensity target under the CSRD?
You can, but you must still disclose the associated absolute emission values for the target year and any interim years. ESRS E1 paragraph 34(a) makes the absolute disclosure mandatory regardless of the target type. Reporting the intensity figure alone produces an incomplete sustainability statement.
Does the SBTi accept intensity targets for Scope 1 and 2?
The SBTi's near-term criteria (v5.3, Section 5) require Scope 1 and 2 targets to follow the absolute contraction approach. Physical intensity targets are accepted only for companies in specific sectors that use the Sectoral Decarbonisation Approach (SDA). Economic intensity targets (per unit of revenue) are not accepted for any sector. The draft Corporate Net-Zero Standard V2 retains these restrictions.