In this step, you will define clear and measurable sustainability targets that align with your material topics, policies, and actions. These targets help you track progress, drive accountability, and prepare for future reporting.
Whether you're reporting under ESRS or using the VSME standard, setting targets turns your ambitions into measurable outcomes.
Why ESG Targets Matter
Well-defined ESG targets are a cornerstone of sustainability performance management. They allow you to:
Translate policies and actions into measurable results
Monitor progress over time
Show accountability to stakeholders and regulators
Strengthen ESG ratings and prepare for assurance
How ESG Targets Are Used in Standards
Framework | What is Expected |
ESRS GOV-3, ESRS 2 SBM-3, ESRS topical standards (Draft July 2025) | Organisations must disclose their measurable targets for each material topic, including baseline, timeframe, and how they track progress. |
VSME | Encourages reporting of targets if available — especially for priority topics. Targets show commitment and direction. |
ESG Ratings (e.g. EcoVadis, CDP, MSCI, Sustainalytics) | Favour organisations with clear, time-bound, and tracked targets aligned with their ESG strategies. |
What an ESG Target Typically Includes
Baseline – Where are you now?
Target Value – Where do you want to be?
Timeframe – When do you aim to achieve it?
Progress Indicator – How will you track success?
Examples of ESG Targets
Priority | Target Title | Target Description | Target Value | Due Date | Type |
E1 – Climate Change | Reduce Scope 2 emissions | Reduce electricity-based emissions by 20% from 2022 baseline | 20% reduction | 31/12/2030 | Quantitative |
S1 – Own Workforce | Increase job satisfaction | Achieve a 90% score in annual employee survey | 90% score | 31/12/2027 | Quantitative |
E5 – Circular Economy | Reduce office paper use | Eliminate 80% of paper use by shifting to digital workflows | 80% reduction | 31/12/2027 | Quantitative |
G1 – Business Conduct | Improve ethics training | Roll out mandatory ethics training to all staff | 100% coverage | 31/12/2027 | Qualitative |
💡 Targets can be either quantitative (e.g. % reduction) or qualitative (e.g. implement policy or complete training).
Best Practice Tips
Link to Material Topics – Only set targets for topics marked material in your assessment
Align with Policies and Actions – Your targets should reflect the outcomes you aim for in Step 2 and Step 3
Be Realistic and Ambitious – Set achievable but meaningful targets that reflect your sustainability ambitions
Use Standard Indicators – Where possible, align with recognised KPIs or ESRS Data Points
What Happens Next
In the next steps, you’ll learn how to:
Add targets in the Klappir-Strategy system
Monitor and update them over time
Link targets back to your actions and sustainability report
Go to the next step