The Science-Based Targets Initiative (SBTi) is a collaborative effort that provides companies with a framework to set greenhouse gas (GHG) emissions reduction targets in line with the latest climate science. It aims to help businesses align their strategies with the goals of the Paris Agreement, which seeks to limit global temperature rise to well below 2°C above pre-industrial levels, with efforts to cap it at 1.5°C. By offering independent validation, guidance, and resources, the SBTi ensures that corporate targets are scientifically grounded, ambitious, and effective in driving substantial climate action.
In 2024, the Science-Based Targets Initiative (SBTi) introduced a new framework called Beyond Value Chain Mitigation (BVCM). This initiative represents an ambitious step forward in global climate action, urging companies to go beyond their direct and indirect emissions reductions and contribute to wider systemic changes necessary to achieve global climate goals. The United Nations Environment Programme highlighted that private sector funding of nature-based solutions both within and beyond corporate value chain “must increase dramatically and quickly”.
What is Beyond Value Chain Mitigation (BVCM)?
BVCM is an approach that encourages companies to engage in climate mitigation efforts that extend beyond their value chain. While traditional science-based targets focus on reducing a company’s Scope 1 (direct), Scope 2 (indirect from purchased energy), and Scope 3 (indirect from the value chain) emissions, BVCM aims to drive broader climate impact through activities that are not directly linked to a company's own carbon footprint.
Investment by companies into mitigation beyond their own value chains must not displace efforts to reduce their scope 1, 2 and 3 emissions. But as stated by Lord Nicholas Stern - Chair of the Grantham Research Institute on Climate Change at the London School of Economics - “BVCM can help catalyze financing for just transitions and investments needed in the poorest countries that are often the least responsible and yet more vulnerable to climate change”.
How BVCM works?
BVCM includes several key elements:
Supplementary climate action: companies undertake climate mitigation actions that are not counted within their own value chain emissions, meaning that BVCM activities and investments are not accounted for in the company’s scope 1, 2 or 3 GHG emissions inventory.
Types of actions: companies can deliver BVCM through a range of instruments, including through the purchase and retirement of high-quality carbon credits and direct investments. This could involve investing in science-based climate projects, supporting policies, or engaging in activities that lead to reductions in global greenhouse gas (GHG) emissions.
Investment in carbon removal technologies: supporting the development and deployment of technologies that remove CO2 from the atmosphere.
Climate finance: providing financial support to climate mitigation projects in developing countries, helping to achieve emission reductions globally.
Advocacy and policy support: promoting climate-friendly policies and regulations that can lead to large-scale emissions reductions.
Partnerships: collaborating with other organizations, NGOs, and governments to implement projects that have significant climate benefits.
Reporting and transparency: companies engaging in BVCM are encouraged to report their activities transparently, including the types of actions taken, the expected climate impact, and how these efforts complement their science-based targets. Companies can disclose their inventory annually through CDP and have their GHG inventory verified by an independent third party.
Four steps are suggested by the SBTi for designing and implementing high-integrity and high-impact BVCM strategies:
Step 1: set and work to deliver a net-zero target
Step 2: establish a BVCM pledge
Step 3: take action to deliver BVCM
Step 4: report BVCM activities and outcomes
Why companies should engage in BVCM?
By engaging in BVCM, companies can drive broader systemic change and contribute more significantly to global climate goals, while unlocking new opportunities and long-term benefits such as:
Securing access to finance
Talent acquisition and retention
Brand differentiation
Technology transition opportunities
Social license to operate
Policy and legal risk management
Climate and nature resilience
Check our articles on why should companies engage in decarbonization strategies.
How companies can engage in BVCM?
Identify potential actions: companies should start by identifying potential BVCM actions that align with their capabilities and resources. This can involve researching available projects, technologies, and partnerships that offer significant climate benefits.
Integrate BVCM into climate strategy: BVCM should be integrated into the broader corporate climate strategy. This involves setting clear goals, allocating resources, and establishing mechanisms for tracking and reporting progress.
Collaborate and partner: engaging in BVCM often requires collaboration with external partners, such as NGOs, governments, and other companies. Building strong partnerships can enhance the impact and effectiveness of BVCM efforts.
Communicate efforts: transparency and communication are crucial. Companies should openly report their BVCM actions, showcasing their commitment and the impact of their efforts to stakeholders. Companies can make VCMI Carbon Integrity claims in relation to their BVCM pledges and actions.
The introduction of Beyond Value Chain Mitigation by the SBTi marks a significant evolution in corporate climate responsibility. By encouraging companies to engage in climate actions beyond their immediate value chain, BVCM aims to accelerate global climate mitigation efforts. For companies, participating in BVCM offers an opportunity to lead in climate action, meet stakeholder expectations, and contribute to a sustainable future. As the climate crisis demands urgent and comprehensive solutions, BVCM represents a vital pathway for companies to expand their impact and help achieve the ambitious goals of the Paris Agreement.
ABOUT APOLOWNIA
Apolownia is a mission-driven company committed to making a significant impact in the climate sector.
We support businesses and funds willing to engage in long-term and impactful decarbonization strategies - within and beyond their own value chain - by designing, implementing and monitoring science-based carbon reduction projects that restore natural ecosystems.
Through technology and innovative solutions, we aim at shaping a resilient and environmentally friendly world, by encouraging the decarbonization of the economy and supporting social and environmental initiatives.
You can drive positive change for the climate, biodiversity and local communities.
Contact us to engage or for more information. Find us on www.apolownia.com.
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