Page 28 - Methodology to assess Net Zero progress in cities

clarity, and compares the conditions' evolution. Financial objectives are well-understood by
an organization, but they are not enough to measure strategic progress since they depict past
conditions and are mostly short-term (less than 1 year).

Indicative financial objectives concern:

• X % annual revenues

• X % increase of after-tax profits

• Profit margins of X %
• X % return on capital employed (ROCE)

• Cash flow to support investments

On the other hand, a strategy is a view to the future and its objectives are long term (3–5 years),
and they are related to customers, internal processes, and learning and development outcomes.
Indicative strategic objectives concern the following:

• Customer-related
• Market proportion increase (%)

• Customer retaining (%)

• New customer gaining
• Internal process related

• Failed product decrease (%)

• New product development in the next two years
• Learning and growth-related

• Increase employee training to X hours per year

• Reduce turnover to X % per year

According to the previous section's findings, carbon neutrality progress is measured according to
specific targets, which can be used as the indicative carbon neutrality objectives:

• Achieve Net Zero emissions by a specified year (i.e., 2070)

• Reduce emissions intensity of GDP (%)

• Reduce emissions (tons)
• Generate energy from renewable resources (%)

• Organization's contribution to GHG emission reduction in the corresponding sector

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