MIT Sloan Management Review Article on Set Ambitious but Realistic Environmental Goals

In the years since the 2021 round of global climate negotiations, more than 2,600 companies have responded to alarms raised by scientists and policy makers by setting aggressive targets to reduce carbon emissions.1 Walmart aims to become powered by 100% renewable energy by 2035; Ikea has made a commitment to produce as much renewable energy as it consumes by 2030; General Electric aims to transform itself into a net-zero company by 2050; and American Electric Power plans to reduce its carbon emissions 80% by 2030, with a goal of net-zero emissions by 2045.

These sustainability goals address demands from a broad array of stakeholders that companies disclose material risks and improve their environmental and social impacts. They also serve to focus the attention and resources that are required within organizations to drive social and environmental progress on the ground.

About the Author

Kate Isaacs and Jason Jay are senior lecturers at the MIT Sloan School of Management. Jeremy Gregory is executive director of the MIT Climate and Sustainability Consortium. Elsa Olivetti is associate dean of engineering, the Jerry McAfee (1940) Professor in Engineering, and a professor of materials science and engineering at MIT.

Learn more about MIT SMR.