The impetus for the sometimes bitter debate in expert circles was the announcement by the management team of the Science Based Targets initiative that in the future, companies might be allowed to have their support for climate protection projects beyond value chain mitigation counted towards their own targets, at least to some extent.
Many employees of the SBTi, as well as various NGOs and some scientists, argue that the original focus of the SBTi should be on obliging companies to reduce their emissions directly and sustainably, rather than resorting to offsetting. They fear that the purchase of certificates could lead to companies neglecting their responsibility to reduce emissions.
Those on the other side of the debate, however, see certificates as an important interim solution, especially for emissions that are difficult to reduce. They argue for their limited use, in particular to account for the major challenges companies face in supply chain management.
myclimate and SBTi
myclimate advises and supports companies on their path to net zero. We also use our expertise to help partners commit to the SBTi and set targets and reduction paths. In recent years, the SBTi has succeeded in creating a credible, ambitious and attractive framework for companies that want to lead the way in an environmentally sustainable economy.
myclimate is therefore following the current debate closely. When working with corporate customers, our focus is always on reduction measures. No credible commitment to climate protection is conceivable without our own reduction plan and corresponding measures. At the same time, we are very familiar with the challenges companies face in Scope 3. Many simply do not have the direct influence to initiate more lasting changes.
SBTi-valid or Not – Projects Are Essential Tools for Climate Protection
Instead of taking sides, and perhaps even getting into a piecemeal discussion about what percentage of Scope 3 certificates should be counted, we want to emphasise the importance of supporting projects. The fundamental debate on the right way forward for effective, science-based, company-driven climate protection must not ignore or even call into question the fact that today, more than ever, we need effective climate protection measures immediately.
In addition to reduction measures, which generally take time, climate protection projects beyond value chain mitigation are the only immediately effective climate action. They are a tried-and-tested tool for cleaning up today’s carbon footprint now. This is because that footprint remains unaffected by reduction measures that will not take effect until later in the future. In society as a whole, we need immediate contributions and reductions more than ever; each one will help us achieve our global targets.
Projects also ensure that the CO2 emissions are already priced within the company, creating an additional economic incentive to do business in a more climate-friendly way. The projects often operate in countries where parts of Swiss companies’ supply chains are located. They have an impact on the ground, making the region and the supply chain itself more resilient.
Find Out More About the Effectiveness and Importance of Climate Protection Projects Here.
myclimate is convinced that the employees and managers at the SBTi will find a solution that primarily serves the global climate. The SBTi has qualified climate protection financing in the form of «beyond value chain mitigation» as a meaningful measures (see here). Any decision on eligibility for inclusion in Scope 3 targets, or a further exclusion, will not change this.
Credible Communication Prevents Accusations of Greenwashing
When supporting climate protection projects, it is important for companies to stop referring to «climate neutrality» or «offsetting». Foundation myclimate switched its label from «climate-neutral» to «Engaged for Impact» almost two years ago. Since then, it has advised all companies to stop referring to offsetting and instead focus on climate protection financing. This prevents accusations of greenwashing and represents a credible commitment to climate protection.