The utility will align its company-wide emissions with performance management to reduce its carbon footprint, and is encouraging the Government to work with business to devise a plan to reduce carbon emissions by 80% by 2050.
National Grid's head of climate change and corporate responsibility, Joe Kwasnik, said: "We believe we are one of the first companies in the world to align company-wide emissions with performance management.
"Our new interim emissions reduction target of 45% by 2020 - which goes further than the EU's potential 30% reduction by 2020 - will provide a more relevant milestone for our business planning process and ensure emissions management is integrated into every aspect of our operational decision-making."
National Grid staff performance measured on their effectiveness in cutting carbon emissions
National Grid will now measure staff performance on their carbon emissions as well as more traditional factors like customer service and reliability.