Beyond Value Chain Mitigation: Strengthening Corporate Climate Responsibility

The Science Based Targets initiative (SBTi) has recently introduced a draft update to its Corporate Net-Zero Standard (CNZS v2.0), aiming to enhance corporate climate accountability. While the existing standard (Version 1.2) encourages companies to engage in beyond value chain mitigation (BVCM) as a supplementary action, the updated draft proposes a more structured approach. It seeks to recognise organisations that not only pursue science-based emission reduction targets within their operations and supply chains but also take responsibility for addressing residual emissions that contribute to climate change.

Understanding Beyond Value Chain Mitigation

A credible BVCM strategy involves supporting or investing in initiatives beyond a company’s direct emissions footprint (Scope 1, 2, and 3). These initiatives should focus on avoiding, reducing, or removing greenhouse gas emissions while maintaining high integrity and measurable impact.

What Does BVCM Entail?

Definition: BVCM refers to actions taken outside a company’s direct operations to mitigate greenhouse gas emissions, either by preventing new emissions or by removing and storing existing emissions from the atmosphere.

Purpose: BVCM serves as a complementary strategy to corporate decarbonisation efforts, helping to accelerate global net-zero progress by addressing emissions beyond an organisation’s immediate control.

Not a Substitute: BVCM should not be viewed as a replacement for reducing emissions within a company’s own value chain. Instead, it is an additional commitment that goes beyond standard reduction measures.

Examples of BVCM Initiatives

• Purchasing and retiring high-quality carbon credits: Supporting projects such as renewable energy development or reforestation that contribute to emissions reduction or removal.
• Investing in carbon removal technologies: Funding innovative solutions like direct air capture (DAC) and carbon capture and storage (CCS).
• Supporting climate technology R&D: Contributing to research that drives advancements in emissions reduction and removal techniques.
• Enhancing carbon sinks: Protecting and restoring ecosystems such as forests and wetlands that naturally store carbon.
• Reducing methane emissions: Funding projects aimed at cutting methane emissions, a powerful contributor to global warming.

Ensuring Credibility in BVCM Investments

For BVCM efforts to be effective and credible, they must adhere to several key principles:

• High Standards: Investments should meet stringent criteria for environmental integrity and effectiveness.
• Additionality: Projects must demonstrate that they would not have occurred without the financial support provided through BVCM.
• Permanence: Carbon removal efforts should ensure that stored emissions remain permanently sequestered.
• Verifiability: Robust verification mechanisms should be in place to track emissions reductions or removals.
• Transparency: Companies should openly disclose their BVCM initiatives, including investment rationale and expected impact.
• Measurable Impact: Projects should be chosen based on their potential to deliver tangible and significant climate benefits.
• Diversification: Spreading investments across different project types and regions can enhance impact and reduce risk.
• Long-Term Commitment: BVCM should be integrated into a company’s long-term sustainability strategy rather than treated as a short-term fix.
• Alignment with Science-Based Targets: BVCM efforts should complement a company’s science-based targets and broader net-zero goals.
• Prioritisation of Internal Reductions: Companies should first focus on reducing emissions within their own operations before turning to external mitigation strategies.

Why It Matters

As the climate crisis accelerates, so does the need for businesses to act, beyond compliance and beyond their supply chains.

The CNZS v2.0 draft makes it clear: credible BVCM is not just encouraged, it’s expected from climate-responsible businesses.

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Whether you’re just getting started or expanding your climate strategy, we’re here to support your journey.