Target Setting
Setting clear renewable electricity targets and defining priorities are important steps in achieving your organizational greenhouse gas footprint reduction targets. In setting a renewable electricity goal, organizations must substantiate the electricity as renewable and clarify the specific source/origin through Renewable Electricity Certificate (REC) ownership.
By increasing their use of renewable electricity, organizations can inspire and create pathways for other organizations and their employees to follow suit. Beyond just the noted environmental and health benefits associated with using zero-emission electricity resources, using renewable electricity can demonstrate your environmental leadership, boost the local economy, create jobs, help insulate against energy price risk, and provide energy system or infrastructure resiliency. Setting reasonable yet aggressive renewable electricity goals can serve as the catalyst for action while at the same time serve as an anchor/metric for accomplishing these objectives.
Different motivations may indicate there are internal competing paths or priorities that will affect the organizations ability to achieve the final project outcome. Organizations should address—and agree to—their primary renewable electricity motivations internally at the beginning of the goal-setting process to best inform project options and support future success. In addition to securing support from leadership, organizations should identify an internal “champion” to resolve any procedural or informational barriers among stakeholders. Along with identifying internal stakeholders, organizations should consult external stakeholders to garner support for a renewable electricity goal. External stakeholder engagement can also identify any unforeseen barriers and concerns prior to setting a goal.
Many organizations make public commitments to their stated goals by posting them on a municipal webpage, publishing them in an environmental action plan, and/or issuing a press release. In addition to publicizing their goals on their websites and/or issuing press releases or public statements, EPA encourages organizations to celebrate their renewable electricity goals via social media and with industry partners to demonstrate leadership and provide examples for other organizations to follow. EPA can assist organizations in creating credible public outreach messaging on their renewable electricity goals.
Type of Goals
The tasks and methods that an organization will use to achieve their goal depend on the type of goal. A renewable electricity goal is generally expressed in terms of a renewable energy system size (e.g., kW of installed solar capacity) or as a performance-based goal. Organizations can also express their goals as a percentage reduction of GHG emission reductions if they are purchasing renewable electricity to reduce their emissions footprint. A specific time period (end date) included in the goal statement is important for both tracking and achieving the stated goal.
| Types of goals | System size goals | Performance-based goals | GHG emission reduction |
|---|---|---|---|
| Metrics | Expressed in kilowatts (kW) or megawatts (MW) of generating capacity | Expressed in percentage of electricity use from renewable electricity generation in kilowatt-hours by a certain year | Expressed in percentage of reduced specific GHGs |
| Structure | The organization is committing to install a certain amount of generating capacity. This type of goal implies that the organization will build renewable energy projects to attain the goal. While system size goals can result in more built capacity, the generation resulting from projects only conveys renewable electricity use if the organization retains the associated RECs. | Organizations using performance-based goals have more flexibility for attaining their goal with various supply options and efficiency programs. However, if the organization's electric load increases, it may be more difficult to meet a specific percentage of renewable electricity use. | GHG emission reduction goals account for more than increased renewable electricity use, where using renewable electricity often helps reduce GHG emissions substantially. |
| Impacts | Load growth and efficiency programs do not impact achievement of this goal. In general, capacity-related goals are simpler to calculate. | Can be impacted by load growth, and electrical demands can fluctuate dramatically year to year or season to season. | Many variables can impact achieving the emission reduction goal, as many aspects of an organization's footprint impact its carbon emissions. |
Absolute versus Intensity-Based Targets
Depending on the organization and their goals, determining which type of target approach to consider can have significant and real commitments to reducing greenhouse gases. Both approaches are valid with many favoring absolute targets. Setting a meaningful emission reduction target requires taking into account and communicating how the organization’s efforts are having a direct reduction.
Absolute targets aim to reduce GHG emissions by a set amount.
An intensity target is a normalized metric that sets an organization’s emissions target relative to an economic or operational variable. Intensity targets allow a business to set emissions reduction targets while accounting for economic growth. An example of an absolute target might be:
- Company A has set a goal of reducing their GHG emissions by 20 percent by 2025.
An example of an intensity-based target might be:
- Company B has set a goal of reducing their GHG emissions intensity per square foot of facility space by 20 percent by 2025.
Setting—and even reaching—intensity-based targets does not ensure that actual reductions have occurred, just that they were reduced in regard to the associated economic output metric.
EPA’s Center for Corporate Climate Leadership has extensive resources (pdf) to assist organizations establishing emissions reductions goals and target setting.