What is the Absolute Contraction Approach?
The Absolute Contraction Approach is an SBTi method for setting a reduction target in total tonnes of carbon dioxide equivalent (tCO2e). It fixes a target-year emissions ceiling against a base year, rather than emissions per tonne of product or unit of revenue.
Why does the Absolute Contraction Approach matter to you?
If a customer asks for a science-based target, you may need the method, base year, target year, covered scopes, reduction percentage and latest inventory. A 4.2% calculation may understate the target because SBTi can apply a higher adjusted annual rate.
How does the Absolute Contraction Approach work?
SBTi's April 2026 method uses your base-year emissions, most recent inventory, target year, scope mix and net-zero year. It calculates a dynamic linear annual reduction rate, converts the result back to a base-year reduction, then sets target-year emissions. The minimum rate is 4.2% for Scope 1, Scope 2 and 1.5°C-aligned Scope 3 targets, but the final rate can be higher.
What mistakes should you avoid?
- Compounding the annual rate instead of applying a linear cut to base-year emissions.
- Using the 4.2% floor without checking the adjusted rate.
- Changing the inventory boundary between the base year and target.
Is absolute contraction the same as an intensity target?
No. Absolute contraction limits total tCO2e. An intensity target limits emissions per unit, so total emissions can still rise when output grows.
Can emissions rise if production grows?
Not above the absolute target ceiling. Higher production does not increase the allowed tCO2e, so the emissions per unit must fall enough to keep the total within the target.
Does every company use a 4.2% annual rate?
No. The 4.2% floor covers Scope 1, Scope 2 and 1.5°C-aligned Scope 3 targets, but SBTi may require a higher rate.