Sustainability Questions
Reporting & Legislation
Solutions & Tips
FutureTracker News
All posts

What is Beyond Value Chain Mitigation (BVCM)?

Unveiling BVCM: A strategy not just for reducing emissions, but for pioneering new horizons in sustainability.
TL;DR Embed
TLDR: Beyond Value Chain Mitigation (BVCM) is a forward-thinking strategy for businesses to combat climate change by taking actions beyond their direct operations, such as investing in renewable energy or supporting reforestation. This approach, highlighted by the Science Based Targets initiative (SBTi), enables companies to contribute to global net-zero emissions while enhancing their sustainability, opening new opportunities, and building resilience against future risks.

Beyond Value Chain Mitigation (BVCM) has recently emerged as a ground-breaking strategy for businesses committed to addressing climate change. This article delves into the concept, drawing insights from the Science Based Targets initiative (SBTi) and its latest report on the subject.

What is BVCM?

Beyond Value Chain Mitigation (BVCM) refers to actions or investments aimed at tackling climate change that are not directly part of a company's everyday operations. These include initiatives to prevent, lessen, or capture and store greenhouse gas (GHG) emissions in the environment. Companies can contribute to BVCM by various means, such as buying and retiring reputable carbon credits or making direct financial contributions through equity investments, loans, or project financing.

BVCM involves:

  • Supporting external economic and social entities in reducing or neutralising GHG emissions.
  • Taking responsibility for the company's residual emissions that contribute to climate change.

It's crucial to note that BVCM actions are distinct from the company’s scope 1, 2, or 3 GHG emissions, hence not contributing directly to the company’s emission reduction targets.

BVCM initiatives can manifest in various practical forms, tailored to different industries and their unique impacts on the environment. For instance, a technology firm might invest in renewable energy projects that power communities beyond its operational footprint, effectively reducing GHG emissions outside its immediate value chain.

In another example, a manufacturing company could support reforestation efforts, contributing to carbon sequestration in areas not directly related to its product lifecycle. Similarly, a retail business could fund the development of sustainable agricultural practices among smallholder farmers, thereby indirectly reducing emissions associated with the products it sells. Each of these examples illustrates how companies can extend their environmental stewardship beyond their immediate operations and supply chains, embodying the essence of BVCM.

How is is Different to Carbon Offsetting?

Carbon offsetting involves compensating for emissions by financing equivalent carbon dioxide savings elsewhere. Typical projects include reforestation or renewable energy projects. Offsetting is often used to achieve a balance after all feasible emission reductions have been pursued.

BVCM, on the other hand, encompasses a broader scope of actions beyond traditional carbon offsets. It involves initiatives that might not directly offset a company's emissions but contribute to broader climate change mitigation. BVCM includes investing in new technologies, supporting sustainable practices in communities, or engaging in projects that reduce or remove greenhouse gas emissions beyond the company's value chain.

While both strategies aim at mitigating climate change, BVCM offers a more holistic approach, encouraging companies to take responsibility for their environmental impact in a broader sense, beyond just balancing their own emissions.

The Importance of BVCM

The SBTi highlights BVCM's role in propelling global efforts towards achieving net-zero emissions.

The key goals of BVCM are:

  • To take further short-term actions to ensure global emissions peak by the mid-2020s and reduce by half by 2030.
  • To invest more in the development and expansion of emerging climate solutions and supportive initiatives to facilitate the comprehensive changes required to reach global net-zero emissions by the mid-21st century.

The Business Case for BVCM

The business case for Beyond Value Chain Mitigation (BVCM) is compelling, offering companies the chance to unlock new opportunities, mitigate future risks, and enhance long-term value. For instance, a company in the food and agriculture sector can bolster its supply chain resilience and contribute to sustainability by investing in landscape restoration, directly linked to its operations.

This approach not only addresses climate-related changes but also opens up new markets, drives innovation, and strengthens the company's reputation among consumers and investors. In essence, BVCM aligns a company's growth ambitions with its sustainability goals, providing a strategic advantage in today's environmentally conscious business landscape.

Implementing BVCM Strategies

The SBTi outlines a structured approach for businesses to implement effective BVCM strategies.

Key steps include:

  • Develop a GHG Emissions Inventory: Catalogue your company’s direct and indirect emissions comprehensively.
  • Set a Science-Based Target: Commit to a clear and measurable goal for reducing your GHG emissions.
  • Create a Transition Plan: Outline actionable steps to achieve your net-zero target.
  • Formulate a BVCM Pledge: Define the scope, objectives, and duration of your BVCM efforts.
  • Implement BVCM Actions: Invest in or support initiatives that reduce or remove GHG emissions beyond your value chain.
  • Report Outcomes: Regularly report on the progress and impact of your BVCM activities.

Beyond Value Chain Mitigation (BVCM) is not just a methodology; it's a transformative journey towards achieving comprehensive sustainability in the business ecosystem. By adopting BVCM, companies can transcend traditional sustainability limits, making significant contributions to both environmental conservation and societal well-being. This approach requires innovation, collaboration, and a deep understanding of the broader impacts of business operations.

Ready to elevate your sustainability journey with Beyond Value Chain Mitigation? FutureTracker is your ideal partner in this transformative process. Our platform and expert team are equipped to guide your business beyond conventional boundaries, unlocking new horizons in sustainability.

If you’d like to learn about how FutureTracker can help your business, book a demo here.

Increase your ESG-IQ!
Get the latest releases and tips, interesting articles, and sustainability news delivered straight to your inbox.
By subscribing, you agree to receive communications from FutureTracker by email
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
More climate insights
View all
More solutions and tips
View all
More reporting and legislation
View all
More news
View all
More FutureTracker news
View all
More client news
View all
More questions answered
View all
Recent articles
View all

Let's get started.