What is Backcasting?
At The ESG Institute, we believe that advancing sustainability starts with understanding the language that shapes it. Our "ESG Terms" series breaks down complex, often overlooked concepts in sustainability and Environmental, Social, and Governance (ESG) reporting—so you can stay informed, inspired, and one step ahead in your journey toward responsible business.
What is Backcasting?
🔺 Backcasting is a strategic planning method where organizations start with a desired future ESG outcome—such as net-zero emissions or full circularity—and work backward to identify the steps needed to reach that goal. Unlike forecasting, which projects current trends into the future, backcasting defines the goal first, then maps a path to get there.
🔺 Why It Matters: In ESG reporting, backcasting helps companies align short-term actions with long-term sustainability goals. It’s especially useful in climate strategy, where future targets like 2050 net-zero require clear, actionable roadmaps starting now. It also supports transparent and credible disclosure, enabling stakeholders to track progress against intentional milestones rather than vague commitments.
🔺 Example: A company aiming to be carbon neutral by 2040 uses backcasting to:
- Define the 2040 state (e.g., 100% renewable energy, zero waste supply chain),
- Then outline the milestones for 2035, 2030, and today,
- With clear ESG performance indicators linked to each phase.
🔺 Did You Know?: The Science Based Targets initiative (SBTi) and many EU-aligned ESG frameworks encourage backcasting as part of climate transition plans, because it ensures that ambitious goals are broken into measurable, time-bound steps that can be reported and verified.
🚀 Follow The ESG Institute today for expert insights, news, and training in sustainability.
The ESG Institute helps your business or organization adopt and integrate Environment, Social, and Governance principles into your core practices, by offering clear guidance and delivering the best market tools and products directly to you., reach out to us today.
