Beyond Value Chain Mitigation (BVCM) is an approach whereby companies take action to reduce their climate impact outside their own value chain, such as supporting climate projects through the purchase of carbon credits. These actions complement the company's own commitments to reduce emissions and are an important part of an overall climate strategy.

The Science Based Targets initiative (SBTi), which is behind the strategy, believes that companies need to take responsibility now to achieve the Paris Agreement's 1.5-degree target.

How to integrate BVCM into your climate strategy
The SBTi Net-Zero Standard contains four steps to create an effective climate strategy:

1. Set short-term science-based targets (a reduction plan for the next 5-10 years)
2. Set long-term science-based targets (a reduction plan in line with the 1.5°C scenario by 2050)
3. Implementing BVCM measures
4. Neutralize residual emissions

BVCM is something your company should start doing now, to have an immediate impact, as opposed to neutralizing remaining emissions after you have done what you can to reduce emissions. But both actions are important. Once you neutralize emissions you can't control, Science Based Targets advocates projects that permanently remove carbon dioxide from the atmosphere, thus meeting the targets of your long-term climate action plan. Exactly what kind of projects remains to be seen.

In the BVCM methodology, it is possible to use different types of measures, such as investment for climate projects through the purchase of carbon credits, or investment in other climate measures to support the development of new technologies and policy measures. Common to all measures is that they should always take place outside their own value chain and that the focus should be on financing climate projects that provide quantifiable, long-term impact.

Financing climate projects through carbon credits

Carbon credits can include projects that prevent greenhouse gas emissions by protecting forests (REDD+), reduce emissions in energy projects such as efficient stoves, or sequester carbon through tree planting.

BVCM also means that companies can invest in technologies such as DACS (Direct Air Capture and Storage), or in research.

Whatever you choose to invest in outside your company's own business, the measures should also:

• contribute to the global goals
• have maximized climate benefits
• delivering climate justice

The investment should be transparent both in terms of financing and reporting. There are also clear references to financing projects that are underfunded.

ZeroMission offers a range of climate projects which, in addition to high climate benefits, also contribute to the global goals. Our projects are mostly located in the Global South, which is the part of the world least responsible for climate change but currently most affected by it. By buying carbon credits in these projects, you can help mitigate the effects of climate change. Planting trees reduces soil erosion and improves the local microclimate by providing shade and protection from storms.

Different ways of financing BVCM
SBTi has developed three models for financing BVCM:

1. Tonne for tonne - Financing climate projects equivalent to your own emissions. If your emissions are 1,000 tons, you buy the equivalent amount of carbon credits.
2. Money for tons - Your company sets a price for your unabated emissions. For example, you can set an internal carbon price for emissions, which you then use to finance climate action.
3. Money for money - Investing a certain percentage of your turnover or profit in climate projects.

You can choose one, all or a mix of these methods.

Take direct responsibility through BVCM

The BVCM is an effective way for companies to take immediate responsibility for their carbon footprint beyond direct emission reductions. The methodology is available to all, including companies that have not joined SBTi. By combining internal actions with external climate projects, you can both strengthen your climate work and improve your credibility with customers and investors, while contributing to the Paris Agreement's 1.5°C target. Here and now.

Studies from Ecosystem Marketplace, MSCI (formerly Trove) and Sylveraa company specializing in providing data and analysis on carbon reduction projects, show that companies that invest in climate projects through the purchase of carbon credits reduce their emissions faster than those that do not. So BVCM can help you on your way to reaching your net-zero targets according to your set plan. Or maybe even faster?

Sources:

SBTi Above and Beyond February 2024

SBTi Raisin the Bar February 2024