# Should a growing MSME set an absolute or an intensity emissions target?

Canonical: https://senseible.earth/answers/absolute-or-intensity-reduction-target

Set an absolute target if a buyer, the SBTi or a programme asks for one; the SBTi SME route uses an absolute Scope 1 and 2 target. Track intensity alongside it, because a growing unit can cut emissions per tonne and still see total emissions rise. Many MSMEs publish both.

## What each target tells a reader

- Absolute: total tonnes of CO2e in the target year against the base year. It is what the climate sees, and what science-based routes ask for.
- Intensity: tonnes per unit of output, such as t CO2e per tonne of castings or per lakh pieces. It shows efficiency and is fair to a unit that is growing.
- The GHG Protocol Corporate Standard, Chapter 11, describes both and notes that an intensity target can be met while absolute emissions rise.

## Who asks for which

- SBTi SME route: an absolute Scope 1 and 2 reduction target under the Corporate Near-Term Criteria. The minimum cut depends on your base and target years; check it on the SBTi site.
- India's CCTS: GHG emission intensity targets, per tonne of product, notified by sector for obligated entities.
- Sustainability-linked loans: either, as written in the facility agreement; intensity is common for growing borrowers.
- Buyers: often absolute for their own Scope 3, but many accept supplier intensity with production data.

## A decision rule

1. If someone sets the type for you, use it.
2. If you plan to grow output fast, set an intensity target for operations and report absolute emissions next to it every year.
3. If you can cut absolute emissions through solar, fuel switching or electrification while growing, set an absolute target; it is the stronger claim.

## Pick the right denominator

Use a physical unit that tracks the energy you use: tonnes, pieces or kWh delivered. Avoid revenue, which moves with prices and inflation. Keep the same unit and production definition every year.

## Illustrative three years of growth

- Base year: 1,000 t CO2; output grows 15% a year; intensity falls 5% a year
- Each year total emissions change by 1.15 x 0.95 = 1.0925, a 9.25% rise
- After three years: 1,000 x 1.0925 x 1.0925 x 1.0925 = 1,304 t CO2
- Intensity after three years: 0.95 x 0.95 x 0.95 = 0.857, about 14.3% lower
- An intensity target is met; an absolute target is missed by a wide margin

Growth and efficiency rates are illustrative.

## What Senseible does here

Senseible tracks absolute Scope 1 and 2 emissions from your monthly bills and invoices and shows intensity per unit of output, so both figures come from the same records.

- [How ambitious SLL targets should be](https://senseible.earth/answers/how-ambitious-should-sll-targets-be)
- [SBTi SME route eligibility](https://senseible.earth/answers/sbti-sme-route-eligibility)
- [What 42% by 2030 means](https://senseible.earth/answers/what-does-42-percent-by-2030-mean)
- [CCTS intensity targets](https://senseible.earth/climate-intelligence/india-carbon-credit-trading-scheme-targets)

Sources: [GHG Protocol Corporate Standard (2004), Chapter 11 Setting a GHG target](https://ghgprotocol.org/corporate-standard), [SBTi SME target validation route (current criteria)](https://sciencebasedtargets.org), [BEE, Carbon Credit Trading Scheme, GHG emission intensity targets (2025)](https://beeindia.gov.in)

Last reviewed 2026-10-18. SME route absolute Scope 1 and 2 target checked 2026-10-19 (Near-Term Criteria); SBTi SME wording and CCTS sector targets change, so check both before quoting a percentage or year.