Firms were today urged to take time to ensure they already have an accurate idea of their carbon footprint before setting any emission reduction targets.

The recommendation is made in a new best practice guide for carbon management, developed by the Carbon Disclosure Project (CDP) and IT giant IBM, which argues that firms keen to reduce carbon emissions need to adopt a "properly formulated" carbon strategy built around clear targets.

The report is based on research into the carbon management strategies undertaken at a number of high profile firms signed up to the CDP's initiative to promote corporate reporting of carbon emissions, including HBOS, Lloyds TSB, Scottish and Southern Energy, Tesco and Unilever.

It advises that the best practices revealed from these organisations suggest firms should undertake substantial ground work before adopting a carbon management strategy. In particular, it claims that "monitoring and measuring carbon emissions is important before reduction commitments are made", as it allows managers to identify areas for improvement and set more accurate targets.

The study also suggests carbon strategies need to be developed "in line with growth prospects", advising that "targets that relate to increases in output and scale of operations allow a company to grow and cut emissions simultaneously".

In addition, the report recommends using standardised methodologies for gathering and reporting carbon data and suggests that making all employees aware of the initiative can help data gathering processes.

Gill Hall, head of carbon management at IBM, said that the research highlighted the many "complexities" of managing carbon data, adding that as more and more firms recognise the importance of managing carbon, there was a need to ensure best practices were embraced.

Paul Dickinson, chief executive of the CDP, added that the best practices highlighted how firms need to treat carbon management as a long term component of their business and plan accordingly.

"Climate change is a bit like the internet: it's arrived, it's not going away, it gets bigger all the time and you've got to work out a way to make money out of it," he said. "There will be some companies like the dotcom start ups, but while it's good to experiment, firms need to accept that carbon management is now a strategic part of their business and treat it accordingly."