Content Commitments and targets Commitments and targets are specific and measurable performance goals or management actions that an organization aims to achieve over a specified timeframe. They are critical to delivering the strategy and demonstrating progress over time. Companies increasingly combine them with more aspirational and long-term stretch targets. Key recommendations Develop a range of verifiable short-term (operational, interim) and long-term (aspirational, stretch) targets for all material issues, with clear baselines. Ensure the setting of targets to deliver impact and specific outcomes. Include targets that go beyond direct operations and consider value chain activities and impacts. Disclose progress against targets and provide a narrative on forward-looking plans to meet targets. Disclose net-zero commitments to reduce emissions to a residual level by no later than 2050 that aligns with a 1.5°C pathway. Disclose nature-related goals or targets that address the company’s key pressures on the loss of nature. Methodology notes Scores limited for companies that do not undertake a materiality assessment or do not link targets to material issues. Emphasis on including interim targets in addition to having a good mix of long-term, aspirational targets for material topics. Of the reports we reviewed: Kumho Tire Co. Kumho Tire Co.’s 2024 Sustainability Report identifies targets and commitments for most of the company’s material issues, including several outcome-based targets – such as 100% sustainable raw materials, 100% renewable energy and a 100% reduction in absolute carbon emissions. These span both short- and long-term time frames (ranging from 2024 to 2045) for implementation. While most of Kumho Tire’s targets focus on its own operations, the company has also established targets that span its value chain (including both upstream and downstream activities) – such as customer satisfaction, waste and recycling, climate and supply chain management targets. The report describes Kumho Tire’s strong climate and nature targets well. The company joined the Science Based Targets initiative (SBTi) in 2022, establishing net-zero targets aligned with a 1.5°C scenario. Now, it is in the process of developing detailed plans and reduction measures to achieve SBTi approval. On nature, Kumho Tire Co. has established clear goals to address its impacts on nature loss, with measurable targets linked to its waste recycling rate, water-use intensity and the percentage of sustainable raw materials used. Sustainability targets strongly support its overall strategy, giving audiences a clear understanding of where the company is headed and how it will get there. % include robust disclosures of commitments and targets, with timebound and measurable targets covering the majority of the most material topics. 0 1 2 3 4 5 6 6 0 1 2 3 4 5 6 6