Marco Swan’s Post

The Science Based Targets initiative (SBTi) has rolled out four key publications aimed at refining the Corporate Net-Zero Standard. These aim to target scope 3 emissions, which make up 75% of a company’s carbon footprint. 🔎 Enterprises working to minimize their carbon footprint are looking towards their suppliers, which frequently makeup a significant portion of scope 3 emissions. These companies are requesting climate disclosure data from their suppliers in order to tackle this problem. SBTi has recently shared better ways to address these emissions through the following technical publications: - Scope 3 Discussion Paper - Evidence on Environmental Attribute Certificates - Synthesis Report on Carbon Credits - Independent Review Findings If you're a supplier navigating disclosure requests or an enterprise sustainability leader working to mobilize suppliers, RyeStrategy can help. Schedule a call today: https://lnkd.in/gz5C_D3i #Sustainability #Scope3 #SBTi https://lnkd.in/epK7JC6C

ResourceWise has continued to cover what's happening around the Science Based Targets initiative's (SBTi) recent statement about #carboncredits. The statement suggested that the organization may accept energy or environmental attribute certificates (EACs), particularly carbon credits, for scope 3 emissions reduction initiatives—a decision that was met with mixed reactions. This announcement has sparked concerns about inconsistencies and uncertainty, resulting in potential setbacks for the reputation of the #SBTi and its standards. Regardless of which side of the debate you're on, it's clear that the SBTi plays a pivotal role in outlining the standards for corporate #decarbonization strategies. Their endorsement bears significant weight, impacting suppliers, buyers, and investors alike. While those who embrace carbon credits see them as essential tools in the battle against climate change, critics argue about their true effectiveness. As SBTi assesses the situation and consults stakeholders for potential revisions to the corporate #netzerocarbon standard, uncertainty continues to hang in the air. Read more about this developing story on our blog. https://lnkd.in/e7nQvH6N #sciencebasedtargets

📓 Summary of the Evidence Synthesis Report: The #SBTi Corporate Net-Zero Standard, initially launched in October 2021, is currently under revision as part of the #Corporate #Net-Zero #Standard V2.0 project. This revision adheres to the Standard Operating Procedure for the Development of SBTi Standards. 💭 The terms of reference for Corporate Net-Zero Standard V2.0 outline several deliverables. 💭 On July 30, 2024, the SBTi unveiled 4 technical outputs, with 2 papers being of particular significance. 💭 Notably, these included the #Scope 3 discussion paper and the #Evidence #Synthesis #Report on the effectiveness of Environmental Attribute Certificates in corporate climate targets - Part 1: Carbon Credits, also called Emissions Reduction Credits. 💭 The report summarizes the body of evidence submitted to the SBTi during the Call for Evidence period related to carbon credits representing emissions reductions or avoidance. 💭 The report on Carbon Credits is the 1st of the 4 distinct reports related to EACs notably, energy attribute certificates for electricity, other energy carrier certificates, and commodity certificates conveying a specific emission factor. 🧠 What are #Environmental #Attribute #Certificates? EACs encompass a wide range of instruments that certify and communicate specific environmental or sustainability attributes of a given activity or commodity. These certificates enable companies to substantiate their environmental claims, support compliance with voluntary or regulatory schemes, and enhance transparency within the value chain. 🧠 What are #Carbon #Credits? EAC instruments that convey the mitigation outcomes of an intervention are referred to as carbon credits. Carbon credits are a specific type of EAC that quantifies the reduction or removal of one metric ton of CO2 eq emissions. They are used in carbon offsetting to compensate for emissions that cannot be eliminated directly. 🧠 #Compliance Carbon Credits: Used in regulated markets under cap-and-trade systems. eg: European Union Emissions Trading System (EU ETS) PS: More information about the report will be shared in the next post. https://lnkd.in/ed5BYC4x https://lnkd.in/eZCSMS9K #SBTi #NetZero #CarbonCredits #EnvironmentalSustainability #EACs #ClimateAction #Scope3 #CorporateResponsibility #CapAndTrade #CarbonOffsetting #ClimateChange #Sustainability #RenewableEnergy #EnvironmentalImpact #GreenEconomy

The Science Based Targets initiative (SBTi) recently announced it will consider allowing companies to use carbon credits to achieve their Science Based Targets (SBTs). Stok carbon expert Paula Przybylski breaks down the change. 📌 Read more: https://lnkd.in/gG-7Ha-4 💡 Subscribe to our newsletter: https://lnkd.in/gNPwsM3s #StokBlog #SBTi #ScienceBasedTargets #Carbon #Emissions #CarbonCredits #SBTs #CarbonAccounting #NetZero #Decarbonization #DecarbonizeNow #Sustainability #ClimateChange #ESG #CRE #AEC

#SBTi releases technical publications in an early step in the Corporate Net-Zero Standard review As an early step in the process to review the Corporate Net-Zero Standard, in line with the regular review cycle, the SBTi is today releasing four technical outputs: ·       #Scope3 discussion paper: A discussion paper setting out the SBTi’s initial thinking on potential changes being explored around scope 3 target setting, including underlying principles and concepts. The discussion paper is informative by nature and does not propose draft requirements or criteria. ·       Evidence received on the effectiveness of Environmental Attribute Certificates: The release of all evidence submitted as part of the open call for evidence which ran September to November 2023 on the effectiveness of Environmental Attribute Certificates (without SBTi assessment). ·       Synthesis report of evidence on the effectiveness of Environmental Attribute Certificates in corporate climate targets – Part 1: Carbon credits: A report presenting the SBTi’s synthesis of the evidence submitted through the call for evidence on the effectiveness of #carbon credits in corporate climate targets. ·       Findings of independent systematic review on the effectiveness of carbon credits in corporate climate targets: A statement on the findings of the assessment conducted by an independent third party on peer-reviewed academic literature on the effectiveness of carbon credits when used as a substitute for direct abatement. The statement summarizes the process followed, findings and limitations of this research exercise. While the evidence submitted and examined reveals some trends and provides insights, the findings of the publications are mixed and further work is needed in the next stage of the process to draw conclusions. https://lnkd.in/ethPKucz

Yesterday, the Science Based Targets initiative (SBTi) published four evidence papers that it will use to shape an updated Net-Zero Standard, which it expects to finalise in late 2025. ● A Scope 3 discussion paper setting out the SBTi’s initial thinking on potential changes being explored around scope 3 target setting, including underlying principles and concepts.  ● Evidence on effectiveness of Environmental Attribute Certificates submitted as part of an open call for evidence (without SBTi assessment). ● Synthesis report of evidence submitted through the call for evidence, part 1 - carbon credits (reports on the other EAC instruments will be published at a later stage). ● Findings of an independent systematic review on effectiveness of carbon credits in corporate climate targets conducted by an independent third party on peer-reviewed academic literature. As ever some great pieces by edie - an overview by Sarah George: https://lnkd.in/gQbHZ23g and more in depth analysis by Matt Mace: https://lnkd.in/gMe4HUMh. With regards carbon offsets, the SBTi stops short of setting out their likely position on changes to the Standard. However, the documents published outline how there is no strong, conclusive evidence on the effectiveness of carbon offsetting. Common issues include over-crediting – providing too many credits for a project; investments in emissions reductions which would have happened anyway; and carbon leakage over time. Social issues were also highlighted including lack of free, prior and informed consent and in some cases projects even catalysed forest loss. Plus, the “quantity and diversity of claims has created confusion amongst corporates and other actors”. Much of which is not ‘new news’ in my view. Suggestions are made as to how voluntary carbon markets could be improved to deliver tangible results, including use of a dynamic baseline to account for factors that emerge within the project timeframe. Overall, given the diversity of views set out in the documents we are sadly far from having a consensus on the use of offsets… and we’re still a way off knowing what the SBTi’s view is but as Matt Mace points out it’s probably right they take their time on this… The SBTi plans to publish a draft Standard for public consultation by the end of 2024. They are currently seeking feedback on the scope 3 discussion paper. View the SBTi resources and share feedback here: https://lnkd.in/gNHTHAyS

The SBTi has announced a postponement of its decision on incorporating carbon credits into corporate net-zero strategies until 2025. This reflects a commitment to ensuring that any future standards are based on solid scientific evidence and stakeholder feedback BUT... While carbon credits can serve as a valuable tool to help reduce emissions and offset those that cannot yet be eliminated, they also play a crucial role in project finance. This decision may delay funding for essential climate projects, which is disappointing given the urgency of our climate crisis. The implications for the voluntary carbon market (VCM) are significant. Increased scrutiny will be necessary to maintain trust and integrity in carbon markets, and companies may need to reassess their reliance on carbon credits during this interim period. As we navigate this evolving landscape, it’s vital to strategically incorporate carbon credits alongside direct emissions reductions to drive meaningful climate action and support project financing. https://lnkd.in/gShK-2DA

The Science Based Targets initiative (#sbti) has announced a timeline for updating its Corporate #netzero Standard, with changes taking effect in 2025. This revision will align with the latest #climate #science, particularly the #IPCC Sixth Assessment Report, and will address #scope3 target-setting challenges. The update will include new guidance and tools for assessing progress and using #carboncredits. SBTi will incorporate stakeholder feedback throughout the process, with interim deliverables and public consultations planned before finalizing the standard. https://lnkd.in/gZxy8jEz

Most people working in or interested in sustainability will have been aware of the recent turmoil going on in within the Science Based Targets Initiative (SBTi). 👇 A quick recap Last week, for the first time the SBTi released new guidance, allowing companies to use all carbon offsets, including low-quality avoidance credits to mitigate their Scope 3 emissions and reach their targets. However, it was quickly revealed that the board and senior management had acted without consulting the employees and against their wishes. Some thoughts 🗣 Given the SBTi's core aim to ensure net-zero targets are in line with the science, it has been rightly considered the premier corporate sustainability body. While they have since clarified how they plan to implement the change, this incident has clearly damaged their credibility, in an industry that needs credibility to drive positive change. It's a sad case of poor governance, but just as concerning are the potential knock-on effects for carbon removals. Companies who pay €150 or more per tonne for permanent CDR should not be bundled together with bad offsets and greenwashing. Unfortunately, this situation threatens the perceived validity of high-quality carbon removal investments. Article here: https://lnkd.in/eTH9t5PE More detail in a slightly older article here: https://lnkd.in/e6t6_jBM

Huge news from Science Based Targets initiative: Beginning later this year, SBIT will allow the use of Environmental Attribute Certificates to address residual (unabated) abatement purposes across Scope 3 emissions. At Flowcarbon we expect this acknowledgement of #carboncredits as a decarbonization tool to spark transformative action. High-integrity carbon credits are the future — and they’re here to address residual emissions comprehensively. 🚀 Let’s seize this moment to champion high-quality carbon markets. Join us in setting new benchmarks for reducing emissions and investing in carbon finance. #ClimateAction #Decarbonization #Scope3 #SBTi #CorporateSustainability #Innovation #SustainableFinance #NetZero #CarbonMarkets #voluntarycarbonmarkets