As the world races toward net zero, companies face a challenge: how to do more than just reduce their own emissions. Beyond Value Chain Mitigation (BVCM) offers an answer—enabling businesses to accelerate global climate action even outside their direct footprint.

The Science Based Targets initiative (SBTi) defines BVCM as "mitigation action or investments that fall outside a company's value chain." Think renewable energy projects in developing markets, forest conservation programs, or investments in cutting-edge carbon removal technologies. These actions complement—but don't replace—a company's core decarbonization efforts.

Why BVCM Matters Now

The math is stark: to limit warming to 1.5°C, global emissions must be cut by 43% by 2030. Corporate value chains account for over 70% of global emissions, but even aggressive internal reductions won't be enough. BVCM bridges this gap.

The SBTi now recommends all companies pursue BVCM alongside their science-based targets. This isn't about offsetting or greenwashing—it's about maximizing impact while the world transitions to net zero.

BVCM accelerates progress in three critical ways:

• Speeds global decarbonization by funding solutions where they're needed most
• Drives innovation in emerging climate technologies
• Demonstrates leadership beyond regulatory requirements

How Companies Put BVCM into Practice

BVCM takes many forms. A technology company might fund solar installations in communities without grid access. A manufacturing firm could invest in direct air capture technology. A retailer might support regenerative agriculture projects that sequester carbon while improving livelihoods.

These investments fall into three categories:

Emission avoidance: Preventing greenhouse gases from entering the atmosphere—protecting forests from deforestation, deploying clean cookstoves, or financing renewable energy in coal-dependent regions.

Emission reduction: Cutting existing emissions outside your value chain—retrofitting buildings for energy efficiency or supporting methane capture at landfills.

Carbon removal: Pulling CO2 from the atmosphere through reforestation, soil carbon sequestration, or emerging technologies like biochar and enhanced weathering.

The Business Upside of Going Beyond

Smart BVCM strategies deliver returns beyond climate impact. According to the SBTi's 2024 "Above and Beyond" report, companies are discovering that BVCM:

Mitigates future risks. Climate-related disruptions threaten supply chains globally. BVCM investments in resilient landscapes and communities protect long-term business stability.

Unlocks innovation. Early investments in breakthrough technologies position companies at the forefront of the clean economy transition.

Meets stakeholder demands. Investors managing $130 trillion in assets now expect climate leadership. Customers increasingly choose brands that go beyond minimum standards.

Builds competitive advantage. As one energy executive noted: "BVCM isn't a cost—it's strategic positioning for a carbon-constrained world."

Making BVCM Credible

Not all climate investments are created equal. Credible BVCM requires:

• Quality over quantity: Focus on verified, additional impacts rather than cheap credits
• Strategic alignment: Choose projects that complement your business expertise and geographic footprint
• Transparent reporting: Clearly distinguish BVCM from value chain reductions
• Long-term commitment: Build partnerships, not one-off transactions

The SBTi emphasizes that BVCM supplements—never substitutes for—aggressive value chain decarbonization. Companies must hit their science-based targets while investing beyond.

What's Next for Corporate Climate Action

February 2024 marked a turning point when the SBTi published comprehensive BVCM guidance through its "Above and Beyond" and "Raising the Bar" reports. These resources provide frameworks for designing and implementing effective strategies.

Early movers are already seeing results. Microsoft's billion-dollar climate innovation fund, Unilever's €1 billion Climate & Nature Fund, and Shell's nature-based solutions investments demonstrate how BVCM scales corporate climate ambition.

The message is clear: deep decarbonization within value chains remains priority one. But in a climate emergency, "good enough" isn't enough.

BVCM is not a substitute for deep decarbonization—but it is a powerful amplifier. Companies that embrace it today won't just meet climate standards; they'll help set them.