July 21, 2025
The climate challenge is huge, but so are the opportunities. By combining integrity, innovation and climate finance, companies can take direct responsibility for their emissions - their carbon footprint - while working to reduce their Scope 3 emissions. Here, Mark Kenber, CEO of the Voluntary Carbon Markets Intergity Initiative, gives his view on how companies should act to take climate responsibility.
This is a summary translation of the original article.
It's time for a reality check when it comes to the climate. In 2024, we crossed the 1.5°C global warming threshold for a full year. While the long-term goal is still crucial, this overshoot underlines the urgent need to accelerate climate action.
In a recent letter published in the edie a small group of scientists and academics expressed concerns about the possibility that the Science Based Targets initiative (SBTi) would allow companies to use carbon offsets as part of meeting their Scope 3 targets.
This is a loaded issue in some circles. But it is also a topic that cannot be avoided. Companies' Scope 3 emissions - the indirect emissions found throughout the value chain - are not decreasing at the rate or scale needed. This is crucial because for most companies, Scope 3 accounts for the vast majority of emissions, and is also one of the levers for change among suppliers and customers. Reducing Scope 3 emissions is complex and challenging and there are significant barriers, but too often we see companies falling back into delays and indecision.
Closing the gap in Scope 3 work is a key factor in achieving the global climate goals. SBTi is to be commended for tackling the issue instead of avoiding it. Now is the time for everyone to support and participate in the development of guidelines that encourage action.
To do this, we need to understand that progress towards climate goals does not always happen smoothly, especially for companies with complex value chains. Recognizing this is not about empowering companies to do less - but more. Additional solutions and new thinking are needed to move companies' climate action from inaction to action, year after year.
Dismissing the value of voluntary carbon markets, and the possibility of building on existing structures - especially to address the Scope 3 gap - ignores an urgent reality: we need all the tools available to fight climate change, and we need them now. We do not have the luxury of waiting - we need to empower businesses to act on Scope 3 where it is currently lacking.
That is why VCMI has developed draft guidelines designed to help companies demonstrate a long-term commitment to the climate and contribute to a broader societal transition, even when progress towards their own Scope 3 targets falls short, despite sincere efforts.
This guideline should work in parallel with climate mitigation strategies, not as a substitute. A way for companies to signal continued commitment to emissions reductions and climate action, even in the face of adversity. And what's more, companies leading the way can help unlock additional climate finance for countries and communities that need it most, especially in the Global South.
Back to the worried scientists - they were absolutely right that the growth of the voluntary carbon market must never come at the expense of climate work elsewhere. VCMI's work focuses squarely on ensuring integrity at the heart of the voluntary carbon market, which means promoting a science-based approach. More work is needed to make this a pillar of the whole market.
The voluntary carbon credit purchase market offers a cost-effective tool to help close the $6.2 trillion annual climate finance gap. This is climate impact finance that provides more 'value for money', supports companies' mitigation strategies and builds resilience in communities on the frontline of climate change.
To take full advantage of the voluntary carbon markets - and especially in the Scope 3 context - we need to get beyond the binary. The debate on using high integrity credits for 'contributions' versus 'offsets' has become too polarized. Our common goal on climate impact requires us all to focus on practical tools and applications to drive meaningful change.
We must not let the perfect become the enemy of the good. As a community, we must be open to new solutions to tackle climate change. By focusing on impact and promoting a common agenda, we can encourage corporate action over inaction and ensure that high integrity carbon markets reach their potential to create real impact.
With the right guardrails, transparency and a commitment to continuous improvement, voluntary carbon markets are proving to be a powerful tool in the fight against climate change. Something we need more of - not less.
