invert logo

SBTi Publishes New Guidance on BVCM Strategies. 

Read more in the March 1 edition of Invert Insights.

Share

Science Based Targets Initiative (SBTi) released two reports on the topic of Beyond Value Chain Mitigation (BVCM).

A key element of the organization’s Corporate Net-Zero Standard, originally released in 2021, these new reports provide a welcome direction on the design, implementation, best practices, and adoption surrounding BVCM strategies as a means for organizations to make meaningful contributions to global climate goals beyond their own value chains. 

As a complementary decarbonization measure, BVCM focuses on participation in the Voluntary Carbon Market (VCM) through the purchase and retirement of high-quality carbon credits and through direct investment into projects. These include activities that avoid or reduce GHG emissions, or remove and store GHG emissions from the atmosphere.

Above and Beyond: An SBTi report on the design and implementation of BVCM serves as a guide in the establishment, measurement, reporting, and verification of BVCM targets, with the important distinction that BVCM efforts must not detract from, or replace, efforts to reduce Scope 1, 2, and 3 emissions. 

Raising the Bar: An SBTi report on accelerating corporate adoption of BVCM acts as an accelerator for building the business case for BVCM. Leveraging the findings of surveys, interviews, and comprehensive workshops, SBTi identifies the key internal and external drivers of BVCM investment, ranging from supply chain security to stakeholder pressures. 

While these reports provide much needed clarity on extending corporate investment to mitigate broader emissions in support of improved, global economic and social infrastructure, there are many who believe – Invert included – that the language of these strategies must ultimately transition from “recommendation” to “requirement” to have the greatest impact.

Until that time, this is an important and necessary first step.

Invert Insights.

💡 There are meaningful and tangible benefits related to investment in BVCM. In addition to demonstrating climate leadership, participation funnels much-needed private-sector funding into complementary climate strategies, such as nature-based solutions; which the United Nations Environment Programme highlighted must scale dramatically and quickly to meet global emissions targets. 

💡 Objections to BVCM investment – ranging from a lack of high-integrity credits to accusations of greenwashing – are being systematically addressed, with new research, standards, and frameworks providing the clarity and transparency required to instill further confidence in the market and lower barriers to participation. 

💡 The business case for BVCM is not universal. Organizations must have an inherent understanding of influences beyond their value chain to make corresponding investment decisions that support corporate values and fuel future growth and ongoing security.