In the ongoing battle against climate change, the Science Based Targets initiative (SBTi) has broadened its focus beyond traditional value chain approaches. This strategic shift aims to propel corporate efforts towards addressing climate change on a larger scale. Two comprehensive reports recently issued by SBTi delve into the realm of beyond value chain mitigation (BVCM), offering guidance and tools to expand the scope of climate action taken by corporations.
A New Focus
Typically, corporate decarbonisation strategies primarily target Scope 1 and Scope 2 emissions, which encompass direct and indirect emissions from energy consumption and electricity production, and those from a company's value chain, respectively, also known as Scope 3 emissions. However, recognising their potential to influence emissions beyond their operational processes, certain companies are now exploring avenues to advocate for policies and practices that lead to broader reductions in emissions across economies. These endeavours may involve investments in carbon removal, conservation efforts, methane reduction, industrial gas emissions elimination, and support for forestry and other nature-based initiatives.
Understanding BVCM
BVCM encompasses a diverse array of activities and investments aimed at mitigating climate change. Scaling up projects related to carbon removal, conservation, methane reduction, industrial gas emissions elimination, and forestry and other nature-based initiatives are key components of BVCM strategies. To support the development of BVCM initiatives, SBTi has recently released two pivotal reports: "Above and Beyond: An SBTi Report on BVCM Design and Implementation" and "Raising the Bar: An SBTi Report on Speeding Up Corporate Adoption of BVCM."
Key Insights from "Above and Beyond"
"Above and Beyond" outlines recommendations for companies to create and implement plans driving progress towards achieving net-zero emissions on a broader scale. It delves into the benefits of BVCM and provides insights into how various industries can adopt broader measures to curb emissions. "Raising the Bar" identifies barriers and incentives for BVCM adoption in the private sector, spanning across civil society, academia, policymaking, advocacy, and multilateral organisations. It offers a toolbox to promote BVCM adoption within corporations, along with recommendations for stakeholders and a "theory of change" for increasing the utilisation of corporate climate finance in BVCM projects.
View the Above and Beyond report
View Raising the Bar report
The Importance of BVCM
The importance of prioritising BVCM while maintaining the momentum of decarbonisation efforts aligned with the 1.5°C target cannot be overstated. SBTi emphasises the significance of transparently declaring BVCM achievements. Leading companies are encouraged to increase their investments in climate-related projects and declare their efforts through the VCMI "Carbon Integrity" declaration, showcasing their commitment to achieving net-zero emissions. The recently released SBTi Glossary provides crucial definitions to aid stakeholders in understanding BVCM concepts.
Enhancing Standards and Awareness
Moreover, SBTi's latest publications enhance the Corporate Net Zero Standard, which delineates criteria for companies to establish science-based net-zero goals. This standard encompasses immediate and long-term science-based targets, BVCM, and offsetting remaining emissions. These efforts come at a critical juncture, following the European Commission's assessment of insufficient plans to reduce greenhouse gas emissions in line with the bloc's objectives and the European Climate Neutrality Observatory's call for accelerated implementation of the European Green Deal to meet emissions targets.
Urgency and Action
Nicole Pavia, program manager for clean energy infrastructure deployment at CATF, underscores the need for diverse solutions in Europe's portfolio to effectively decarbonise and bolster energy security. In conclusion, SBTi's concerted efforts to promote beyond value chain mitigation (BVCM) strategies mark a pivotal advancement in the global fight against climate change. By expanding corporate climate action beyond traditional value chain approaches, SBTi's recent reports offer a roadmap for companies to navigate towards net-zero emissions on a larger scale. As the urgency of addressing climate change becomes increasingly apparent, prioritising BVCM while continuing the trajectory of decarbonisation aligned with the 1.5°C target is paramount. These initiatives not only underscore the critical role of corporations in mitigating climate change but also serve as a rallying cry for increased investment in climate-related projects. With the support of stakeholders across various sectors, SBTi's endeavours pave the way for a more sustainable and resilient future for generations to come.
The Science Based Targets initiative (SBTi) has released two reports to assist in the development and execution of beyond value chain mitigation (BVCM) strategies, which can expand the range of climate action taken by corporations. The reports provide recommendations and a toolbox for companies to create and execute plans that will drive progress towards achieving net zero emissions on a larger scale. The SBTi has highlighted the importance of prioritising the achievement of BVCM while ensuring that it does not hinder the progress of decarbonisation in corporate value chains aligned with the 1.5C target. These efforts represent a significant advancement in the fight against climate change and a call to action for leading companies to increase their investment in climate-related projects.