BT announced today that it will cut its carbon emissions intensity – the rate of emissions relative to GDP – by 80 per cent of the company's 1996 levels by 2020.

The firm also published a new model for measuring and tracking its carbon emissions which is backed by independent body the Carbon Disclosure Project.

Known as the Climate Stabilisation Intensity (CSI) target, the model creates a relationship between BT’s CO2 emissions and its financial performance so that they become interdependent.

"It is a powerful tool for embedding sustainability into organisations worldwide, and critical in effecting change," said Dr Chris Tuppen BT’s director of sustainable development.

BT says the model is unique, in that it allows for business growth whilst still respecting stringent global CO2 reductions.

It claims the model is in line with the worldwide reduction imperatives outlined in the Stern Report and reports by the UN Intergovernmental Panel on Climate Change (IPCC).

BT intends to meet the 80 per cent reduction target through a combination of energy efficiency, on-site renewable generation – aiming for 25 per cent of its UK electricity to come from wind turbines by 2016 – and purchased low-carbon electricity.