Glossary entry

Beyond Value Chain Mitigation Measures

Definitions

Option 1

Beyond Value Chain Mitigation Measures means actions or investments made by [a Company/ Party] to mitigate the impact of Climate Change that fall outside of [the Company/ Party]’s value chain. These include actions or investments by [the Company/ Party] that:

(a) reduce or avoid Greenhouse Gas Emissions;

(b) enhance the sinks of Greenhouse Gases; or

(c) remove Greenhouse Gases from the atmosphere.

Option 2

Beyond Value Chain Mitigation Measures means actions or investments taken by [a Company/ Party] to mitigate the impact of Climate Change that fall outside of [the Company/ Party]’s value chain. This includes actions or investments by [the Company/ Party] that:

(a) reduce or avoid Greenhouse Gas Emissions;

(b) enhance the sinks of Greenhouse Gases; or

(c) remove Greenhouse Gases from the atmosphere[.]

[These actions or investments should align with the recommendations of the Science Based Targets initiative ( SBTi )’s Corporate Net-Zero Standard (as amended from time to time)].

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Drafting notes

SBTi terminology

This definition refers to the Science Based Target initiative’s Corporate Net-Zero Standard. The SBTi provides companies with guidance and recommendations on how to set science-based net zero targets.

SBTi recommends that companies take climate action outside of their value chains. This includes annual reporting on the nature and scale of their actions and investments.

Examples of beyond value chain mitigation include:

  • forestry – jurisdictional REDD+ projects;
  • conservation projects – peatland or mangrove;
  • energy efficiency – cookstove projects;
  • methane destruction – landfill gas projects;
  • renewable energy – solar;
  • industrial gases – Nitrogen Oxide (N20) destruction at nitric acid facilities; and
  • scale-up of carbon dioxide removal technologies – direct air capture and storage.

Option 1

This option is a short form version of the definition.

Option 2

This option is a longer form definition with options that might be appropriate depending on the level of detail and ambition required by the parties.

Application

Stakeholder agreements, service agreements, share purchase agreements, company articles, corporate climate policies, due diligence questionnaires (procurement/ tendering) and government guidance.