Beyond Value Chain Mitigation

Guidance for beyond value chain mitigation

Why take action?

According to the Intergovernmental Panel on Climate Change (IPCC), the remaining ‘carbon budget’ for a 50% chance of limiting warming to 1.5˚C is only 500 gigatons CO2. Even under optimistic projections, there is an enormous gap between where we are headed by 2030 and where we need to be. Estimates suggest that annual climate finance needs to increase by at least seven times to meet internationally-agreed climate objectives by 2030. At least $4.3 trillion USD in annual finance flows are needed by 2030. But today, approximately $665 billion USD is available, around 20% of which is deployed by the corporate sector.

SBTi-validated companies are already deploying climate finance towards achieving their science-based targets. However, the SBTi strongly recommends that companies go above and beyond their science-based targets to invest in mitigation beyond their value chains. This is because:

  • There is still a significant number of companies without science-based targets
  • There are important sources of emissions outside corporate value chains, such as those linked to subsistence agriculture)
  • Government policies are not yet sufficiently ambitious to deliver a 1.5°C future

The SBTi’s Corporate Net-Zero Standard calls this activity beyond value chain mitigation (BVCM).

Analysis conducted by Systemiq for the SBTi found that almost 70% of surveyed companies felt that the private sector should be doing more than abatement of value chain emissions. However, they needed guidance on best practice in beyond value chain mitigation activities and investments.

About the project

In response, the SBTi has initiated a project to publish further recommendations on Beyond Value Chain Mitigation.

To date, the SBTi has taken the following actions in the guidance development process:

Project participants

The SBTi is the project lead, manager and convening agent. The Project Team consists of representatives from the SBTi partner organizations, plus a secondee from Systemiq. Boston Consulting Group (BCG) and Climate Focus also provided consultancy support.

Stakeholder involvement is possible via the following groups:

Expert advisory group (EAG): The EAG is composed of technical experts from stakeholder organizations and companies interested in investing in beyond value chain mitigation (see here for the terms of reference). These advisors provide technical advice to the SBTi in support of the development of BVCM guidance. Membership of the EAG does not constitute formal endorsement of SBTi products relating to BVCM. The following individuals are part of the BVCM EAG:

  • Alexander Farsan
  • Amir Safaei
  • Andika Putraditama
  • Anita Otubu, Universal Energy Facility
  • Anshari Rahman
  • Bhaskar Singh Karky
  • Bogolo Kenewendo
  • Brad Schallert
  • Candace Vinke
  • Carlijn Nouwen
  • Chandra Shekhar Silori
  • Chidi Oti-Obihara
  • Daniel Zarin
  • Derik Broekhoff
  • Diksha Pillay
  • Disha Agarwal
  • Donna Lee
  • Duan Maosheng
  • Elijah Innes-Wimsatt
  • Emma Stewart
  • Gabriel Chaves Barboza
  • Gilles Dufrasne
  • Hilda Galt
  • Hilde Stroot
  • Johnny White
  • Juliette de Grandpre
  • Karol Gobczynski
  • Kelley Kizzier
  • Kerry Constabile
  • Keyvan Macedo
  • Kuki Soejachmoen
  • Mark Kenber
  • Meera Atreya
  • Melissa Gallant
  • Morten Rossé
  • Nguyen Phi Hung
  • Paola Delgado Luna
  • Patricia Pinho
  • Paul Vermaak
  • Rob Macquarie
  • Robert Höglund
  • Roberta Barbieri
  • Ronan Hodge
  • Ruhana Zariwala
  • Simon Petley
  • Stephan Singerl
  • Tanja Havemann
  • Thiago Chagas
  • Xiaolu Zhao
  • Zeke Hausfather

Financial support

Financial support for the project has thus far been provided by the Gordon and Betty Moore Foundation.

Resources

Scarlett Benson provides an overview of BVCM and the public consultation process.

Public Consultation

The public consultation on beyond value chain mitigation was open from June 19 to July 30, 2023.

Further information on the public consultation is below:

Contact

For enquiries about the beyond value chain mitigation project, email the team at info@sciencebasedtargets.org.

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