Beyond Value Chain Mitigation: A Call for Credible Climate Action

The urgency of addressing the climate crisis has never been greater. As global temperatures continue to rise and the impacts of climate change become more severe, businesses and organizations must step up their efforts to reduce greenhouse gas emissions. This requires a dual approach: ambitious internal decarbonization and robust action beyond their value chains. At ClimateSeed, we are proud to have co-signed, in collaboration with leading organizations, such as; Carbon Market Watch, Gold Standard and WWF International, a recent joint statement on the importance of credibly funding beyond value-chain climate action. This initiative provides a clear framework for companies to responsibly contribute to climate solutions while upholding transparency and integrity.

BVCM: Breaking Free from Outdated Approaches

For too long, the corporate world has relied on outdated "carbon neutrality" models that have often fallen short in delivering meaningful climate action. These models frequently make unsubstantiated claims and focus more on offsetting than on addressing the root causes of emissions. It’s time for a paradigm shift.

The joint statement, initiated by Carbon Market Watch and supported by dozens of stakeholders from academia, civil society, and the private sector including ClimateSeed, outlines a clear alternative to these ineffective practices. It emphasizes that companies must prioritize internal decarbonization while also funding high-quality climate action beyond their value chains. This approach ensures the delivery of tangible benefits for the climate and sustainable development.

The Five-Step Model for BVCM

While prioritising its own decarbonization in line with a 1.5C° trajectory, a company should: 

1. Calculate and disclose its GHG footprint, including scope 1, 2 and 3 emissions; 
2. Determine a budget to be allocated to beyond value-chain climate action (e.g. through an internal carbon price, a share of revenues, etc.); 
3. Undertake due diligence to decide on a beyond value-chain climate portfolio that will direct finance to the most impactful climate initiatives; 
4. Finance the identified initiatives;

5. Publicly communicate about each of the 4 steps, clearly separating beyond value-chain funding from internal decarbonization efforts.

The details of how to operationalize each step can and should be refined, and there may be nuances in how they are implemented. But this can be done by each actor, with transparency and integrity, as many of the undersigned organizations are doing already.

Driving Change

The support for this statement reflects a growing consensus among stakeholders. Nearly 50 organizations have endorsed the call for credible BVCM practices, signaling a collective commitment to meaningful climate action. Among the signatories are prominent actors in the voluntary carbon market, such as Gold Standard and Compensate Foundation, which have also emphasized the need to move away from misleading "carbon neutrality" claims.

By adopting credible alternatives, companies can not only enhance their climate impact but also build trust with stakeholders and drive the green transition.

ClimateSeed’s Commitment: Credibly Funding Beyond Value-Chain Climate Action

At ClimateSeed, we are dedicated to empowering organizations in their decarbonization journeys. Beyond helping our partners measure and reduce their carbon footprints, we actively support them in funding impactful carbon projects that avoid or sequester carbon emissions beyond their value chains. Signing this joint statement aligns with our mission to champion transparent, high-quality climate action.

We encourage other organizations to join us in embracing BVCM. Together, we can create a future where businesses lead the way in addressing the climate crisis with integrity and ambition.

To learn more about how your organization can get involved in this change, please, contact us at ClimateSeed.