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The SBTi has released two new reports to support the design and implementation of beyond value chain mitigation (BVCM).
The Science Based Targets initiative (SBTi), an international organization enabling ambitious climate action from the private sector, has released two new reports to support the design and implementation of beyond value chain mitigation (BVCM) strategies and mobilize increased action from corporations.
The SBTi’s Corporate Net-Zero Standard outlines the requirements and recommendations for companies to complete when setting a science-based net-zero target. The four pillars of the Standard are: near-term science-based targets, long-term science-based targets, BVCM and neutralization of any residual emissions.
BVCM occurs outside of company value chains and therefore does not reduce companies’ scope 1, 2 or 3 emissions. However, BVCM plays an important role allowing companies to help accelerate the global net-zero transformation by enabling other economic and social actors to avoid, reduce or remove greenhouse gas (GHG) emissions. Efforts to deliver BVCM must not replace or delay 1.5°C-aligned corporate value chain decarbonization.
The two BVCM reports released today are:
- Above and Beyond: An SBTi report on the design and implementation of BVCM
- Raising the Bar: An SBTi report on accelerating corporate adoption of BVCM
The new reports are supported by a glossary of key definitions used across the SBTi’s resources to enable greater understanding by stakeholders. The new SBTi Glossary has been developed to improve accessibility and increase understanding – to give more companies the clarity to set ambitious climate targets.
Above and Beyond: An SBTi report on the design and implementation of BVCM
The “Above and Beyond” report provides suggestions to support companies in the design and implementation of BVCM strategies to accelerate progress towards global net-zero.
The report explores the business case for companies to adopt BVCM, and describes the suggested steps involved in making a BVCM pledge. It also provides illustrative examples to show how companies in a range of sectors might implement BVCM inline with the suggestions provided.
Raising the Bar: An SBTi report on accelerating corporate adoption of BVCM
The second report explores the incentives for BVCM over which the broader climate ecosystem has influence, including civil society, academia, policymakers, standard setters, advocacy organizations and multilateral organizations. It draws upon SBTi research to consider the barriers and incentives for private sector adoption of BVCM.
The report proposes a toolbox for accelerating corporate adoption and implementation of BVCM and sets out recommendations for different actors, offering a shared vision and “theory of change” for scaling corporate climate finance into BVCM over the coming decades.
Beyond Value Chain Mitigation
Given the urgency of the climate crisis, the SBTi recommends that all companies take action to deliver BVCM as they transition to net-zero.
“Over the course of many months, the SBTi has worked diligently to bring a systematic, logical approach to the amorphous world of beyond value chain mitigation claims. As part of the Expert Advisory Group, I’ve had the opportunity to learn with the SBTi as well as with and from a wide range of contributors — including fellow EAG members and hundreds of participants in the public consultation process. The resulting report is an important step forward and represents the best available synthesis of expertise on this complex topic. I’m particularly encouraged by the recognition and inclusion within SBTi’s BVCM guidance of the essential contributions that the world’s remaining high integrity, intact forests make to climate regulation — helping to constrain the climate crisis by keeping the Earth substantially cooler than it would be without them.” Daniel Zarin, Executive Director for Forests & Climate Change, Wildlife Conservation Society (WCS).
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“SBTi’s BVCM Report is a call to action: companies must scale up climate finance. SBTi highlights the importance of transparent BVCM claims. Companies can now make a VCMI “Carbon Integrity” claim and get recognized for accelerating global net zero, by using high-quality carbon credits to go above and beyond science-aligned emissions cuts.” Lydia Sheldrake, Director of Policy and Partnerships at VCMI.
“BVCM, SBTN and SBTi FLAG guidance provide the essential toolbox for the private sector to value nature’s contribution to solving the climate crisis and thereby the justification for the financial sector to invest in nature.” Morten Rossé, Head of Nature and Climate, holistiQ Investment Partners.