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.
What is BVCM?
Beyond value chain mitigation (BVCM) is a mechanism through which companies can accelerate the global net-zero transformation by going above and beyond their science based targets.
BVCM is defined in the SBTi Corporate Net-Zero Standard as “mitigation action or investments that fall outside a company’s value chain, including activities that avoid or reduce GHG emissions, or remove and store GHGs from the atmosphere.”
Funding of BVCM, if done right, can unlock an array of opportunities, mitigate future risks and protect and enhance long-term value. The business case for BVCM will depend on the region, market and industry in which the company operates and will ultimately be influenced by the extent to which the company is impacted by the changing physical environment linked to climate change. Businesses must also take into account the associated changes in policy, financial markets, consumer markets, society and technology to ensure that their BVCM activities have the greatest impact possible.
About the project
In February 2024, the SBTi published "Above and Beyond: An SBTi report on the design and implementation of beyond value chain mitigation (BVCM)" to support the BVCM recommendation included within the Corporate Net-Zero Standard. Its purpose is to support companies in the design and implementation of BVCM strategies to accelerate progress towards global net-zero.
At the same time, the SBTi published “Raising the Bar: An SBTi report on accelerating corporate adoption of BVCM”, which 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 SBTi has taken the following actions in the development process of both BVCM reports:
- April 2021: Requested proposals for consultancy work on BVCM.
- October 2021: Launched the SBTi’s Net-Zero Standard which introduced BVCM.
- December 2021: Completed consultancy work and issued a report by Systemiq.
- August 2022: Published Blog entitled “Going Above and Beyond to Contribute to Societal Net-Zero”.
- September 2022: Published Blog entitled “Net-Zero: Urgent Beyond Value Chain Mitigation Is Essential”.
- October 2022: Initiated BVCM report development.
- March 2023: Appointed an Expert Advisory Group for BVCM.
- June-July 2023: Six-week public consultation on BVCM.
- September 2023: Public consultation and corporate engagement survey results published.
- February 2024: Published BVCM report and accompanying research paper on accelerating corporate adoption of BVCM.
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:
Public Consultation
1) 268 responses to public consultation
2) corporate engagement: 212 companies responded on an online survey and a further 22 companies were interviewed
Resources
- Above and Beyond: An SBTi report on the design and implementation of beyond value chain mitigation (BVCM), published in February 2024
- Above and Beyond: Executive Summary excerpt, published in February 2024
- Blogs:
- BVCM blog entitled “Going Above and Beyond to Contribute to Societal Net-Zero”, published in August 2022
- BVCM blog entitled “Net-Zero: Urgent Beyond Value Chain Mitigation Is Essential”, published in September 2022
- Public consultation and corporate engagement (2023)
- Public consultation document published in June 2023
- Public consultation results published in September 2023
- Corporate survey results published in September 2023
- Link to the survey
- PDF of survey questions
- News bulletin
- An overview of BVCM and the consultation process webinar
- Landscape assessment (2021)
- Report issued by Systemiq in December 2021 summarizing the insights from a survey and interviews and providing an assessment of different approaches companies can take on BVCM
Contact
For enquiries about BVCM, email the team at info@sciencebasedtargets.org.
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