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Welcoming SBTi's New Beyond Value Chain Mitigation Guidance

Today, the Science-Based Targets initiative (SBTi) launched its anticipated Beyond Value Chain Mitigation (BVCM) guidance, clarifying the role and incentives for companies in financing climate action.

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Robert Höglund and Nina Siemiatkowski

Feb 28, 2024

2 min read

Updated 3 months ago

Today the Science-Based Targets initiative (SBTi) introduced its much awaited new Beyond Value Chain Mitigation (BVCM) guidance. Companies play a pivotal role in financing climate action, but there has been a lot of uncertainty around how, and what the incentives for them to do it is. The new guide brings further clarity into these questions. 

The SBTi guidance, divided into two publications, sets two primary goals for BVCM: to catalyze immediate mitigation outcomes and promote the scale-up of emerging climate solutions. It introduces four guiding principles: scale enhancement, focus on underfinanced opportunities, support for sustainable development goals (SDGs), and climate justice advancement.

We welcome this development. Milkywire has been heavily engaged in BVCM since its inception. Robert (CTF fund manager) is part of the SBTi Technical Advisory Group that helped input to the SBTi guidelines, and Nina (founder and CEO) was invited to write a foreword for the SBTi guide. Our Climate Transformation Fund, the first of its kind, has been an explicitly BVCM-aligned portfolio from launching 2021. 

The fund supports projects within durable carbon removal, emission reductions, and nature restoration and protection to help reach global net zero, providing an alternative to offsetting. Backed by companies like Klarna, Spotify, and ING Bank, the fund has supported 30 projects so far across the world with more than 8 million USD and is growing rapidly. Milkywire has also developed a white paper on setting internal carbon fees for BVCM and hosted webinars with SEI and WWF to advance BVCM understanding.

In collaboration with Gold Standard and Murmur we have created a detailed how-to guide for companies on BVCM financing that will be launched on March 13th. This guide includes guidance on setting targets, selecting projects, and assessing impacts. It builds on the SBTi framework, providing tools for implementing high-integrity BVCM strategies. On March 27th Milkywire and Gold Standard will arrange a webinar presenting the contents as well as inviting companies for discussion. Register for the webinar here.

As we move forward, the why for companies to engage in BVCM becomes increasingly clear. The launch of the SBTi’s BVCM guidance is a call to action for businesses everywhere to take their sustainability strategy to the right level. At Milkywire, we see this as an opportunity to shift the conversation, moving away from why to how. Our upcoming guide and webinar aim to empower companies to navigate this new terrain confidently, setting the stage for a future where BVCM is a standard part of every company’s climate strategy. Let's make "What are you doing to help finance climate action?" the question that every company is prepared to answer.

About the author(s)

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Robert Höglund

CTF Fund Manager

Robert Höglund is a carbon dioxide removal (CDR) and climate policy expert. In addition to managing the Climate Transformation Fund, he co-founded the CDR market overview, works with the NGO Carbon Gap, and publishes reports and articles on carbon removal and corporate climate contributions. He is a member of the EU Expert Group on Carbon Removals, the Science-based Target initiative's (SBTi) Technical Advisory Group, and the board of the KTH-led research program Mistra sustainable consumption. Robert previously headed Oxfam Sweden's policy and communications team and founded the Climate Goal Initiative in Sweden.

Related Funds

Climate Transformation Fund

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