Science Based Targets initiative sets out path to ‘beyond value chain mitigation’

The SBTi has published two reports explaining how companies can take climate action outside their supply chains

Companies should take measures to reduce greenhouse gas emissions and support climate action, even if such measures are not directly related to their own Scope 1, 2 and 3 emissions, the Science Based Targets initiative has said, calling on policymakers to mandate these actions through new regulations.

The SBTi suggests that its “beyond value chain mitigation” concept is important “to catalyse private sector finance to mitigate emissions that occur beyond corporate value chains”, and that are “commonly underserved by traditional finance mechanisms,” insisting they can offer financial and operational benefits to companies.

It gives the example of a manufacturing company funding the restoration of coastal ecosystems near its production facilities, which would help to mitigate the risk of cost increases or revenue losses brought about by storm surges damaging its facilities.

The SBTi says it does not plan to validate BVCM claims, observing that other organisations, such as the Voluntary Carbon Market Integrity Initiative, are already working to define BVCM-related claims. It does, however, set out a series of recommendations for designing BVCM strategies, which include establishing a net zero target, making a BVCM pledge, and measuring this commitment.

“It is important to emphasise that a company’s efforts to deliver BVCM must not replace or delay efforts to reduce its Scope 1, 2 and 3 emissions in line with a 1.5C pathway,” the SBTi says.

It also urges policymakers to introduce regulations compelling companies to deliver BVCM, as part of a list of suggestions aimed at encouraging its uptake.

You can find the SBTi’s report on designing and implementing BVCM here. You can read its report on accelerating the adoption of BVCM here.