SBTi Publishes Two Reports to Guide Corporate Beyond Value Chain Mitigation

The Science Based Targets initiative released two reports — Above and Beyond and Raising the Bar — to support companies in designing and implementing beyond value chain mitigation strategies. The reports aim to mobilise increased corporate investment in climate finance activities outside company value chains.

Beyond value chain mitigation (BVCM) forms one of the four pillars of the SBTi's Corporate Net-Zero Standard, alongside near-term targets, long-term targets and residual emissions neutralisation. BVCM covers actions such as purchasing high-quality carbon credits or investing in direct air capture, and does not reduce Scope 1, 2 or 3 emissions directly. The Above and Beyond report provides guidance on the design and implementation of BVCM strategies, including illustrative sector-by-sector examples. The Raising the Bar report examines incentives and proposes a toolbox for accelerating corporate adoption, setting out recommendations for civil society, academia, policymakers and multilateral organisations.

The reports acknowledge that BVCM must not delay or replace corporate value chain decarbonisation. Rather, they frame BVCM as an avenue for companies to contribute to broader societal net-zero goals while pursuing their own emission reduction targets. A new SBTi Glossary was simultaneously released to improve accessibility and reduce definitional ambiguity across the initiative's frameworks. The VCMI noted companies can now make a recognised Carbon Integrity claim by using high-quality carbon credits above and beyond their science-aligned emissions cuts.

The SBTi hosted a webinar on 21 March 2024 featuring its BVCM lead Scarlett Benson to present the reports and address questions from stakeholders. Wildlife Conservation Society Executive Director Daniel Zarin welcomed the recognition of intact forests' climate regulation role within the guidance. holistiQ Investment Partners' Head of Nature and Climate Morten Rossé noted the reports provide the essential private-sector toolbox for valuing nature's contribution to climate solutions, which underpins investment justification for nature-based finance.

Key figure — Four pillars of the SBTi Corporate Net-Zero Standard including mandatory BVCM component