The Essence of VCMI’s Claims Code
At the core of VCMI’s Claims Code is the Monitoring, Reporting, and Assurance (MRA) Framework. This framework, coupled with the newly introduced ‘Carbon Integrity’ Claims branding, provides companies with the means to declare their dedication to climate action. These claims, categorized as Silver, Gold, or Platinum, signify a commitment that goes beyond mere emissions cuts, directing financial support to initiatives actively combating climate change.
Unveiling the ‘Scope 3 Flexibility’ Claim
An innovative addition to VCMI’s repertoire is the beta version of the ‘Scope 3 Flexibility’ Claim. This practical step aims to accelerate corporate climate action by addressing Scope 3 emissions—those indirectly tied to a company through its value chain. The claim, although in its beta phase, is designed to foster responsibility for these emissions, steering companies toward a net-zero trajectory through high-quality carbon credits.
The Global Impact of High-Integrity Carbon Credits
When employed with integrity, voluntary carbon markets (VCMs) play a pivotal role in channelling capital toward low- and middle-income economies. This not only aligns with the Paris Agreement’s goal to limit global warming but also contributes significantly to the UN Sustainable Development Goals.
Estimates suggest that embracing VCMs in corporate transition plans could unlock over $50 billion by 2030. Furthermore, research indicates that companies engaging in voluntary carbon markets exhibit higher ambition levels and a faster decarbonization pace compared to their counterparts.
Operating with Integrity: A Non-Negotiable Imperative
For these outcomes to materialize, VCMs must operate with unwavering integrity. Carbon credits must represent verifiable greenhouse gas reductions, adhere to stringent environmental and social safeguards, and supplement—not substitute—decarbonization efforts. Adhering to the VCMI Claims Code, fortified by the latest guidance, ensures the credibility of associated claims.
Introducing the ‘Carbon Integrity’ Brand and MRA Framework
In a move to amplify the visibility of VCMI Claims, a standalone brand—‘Carbon Integrity’—has been launched. This brand, adorned with a distinctive mark for Silver, Gold, and Platinum Claims, serves as a visual testament to a company’s dedication to accelerating global net zero. The MRA Framework, a critical component, substantiates the Carbon Integrity Claim, providing a robust foundation for its credibility through independent third-party assurance.
Navigating the Scope 3 Challenge
Recognizing the challenges companies face in meeting Scope 3 emissions reductions, VCMI introduces the beta version of the ‘Scope 3 Flexibility’ Claim. This pragmatic solution allows companies to bridge the emissions gap using carbon credits while intensifying internal decarbonization efforts. MSCI Carbon Markets estimates a potential $19 billion impact if companies leverage carbon credits to align with their Scope 3 emissions reduction targets.
Guardrails for Integrity and Progress
To prevent misuse and greenwashing, VCMI has established strict guardrails for the ‘Scope 3 Flexibility’ Claim:
- Adherence to VCMI Foundational Criteria
- Meaningful progress toward Scope 1 and 2 emission reduction targets
- Limiting carbon credits to 50% of GHG inventory Scope 3 emissions
- Phased reduction leading to complete phaseout by 2035
The Roadmap to a Sustainable Future
The beta version of the ‘Scope 3 Flexibility’ Claim has a roadmap outlining steps to finalize it by Q3 2024. This roadmap includes developing tools for measuring progress, refining criteria and guardrails, and establishing a brand distinct from Carbon Integrity Claims.
Collaborative Approach for Holistic Development
VCMI’s inclusive approach involves collaboration with sustainability, climate, and finance experts through forums, advisory groups, and an early adopter program. With over 150 diverse perspectives, VCMI ensures that its initiatives reflect a comprehensive understanding of the market.
A Call to Action
As we stand at a critical juncture in the fight against climate change, VCMI issues a call to standard setters to address governance gaps, mobilize demand, and make 2024 the year of accelerated climate action. Clear guidance from standard setters is imperative to incentivize companies to leverage carbon credits responsibly and expedite the transition to science-based targets.
VCMI’s Claims Code, fortified by the latest guidance, propels companies toward genuine climate leadership. By embracing the ‘Carbon Integrity’ brand and navigating the ‘Scope 3 Flexibility’ Claim with integrity, corporations can not only contribute significantly to global net zero but also stand out as beacons of sustainability in an ever-evolving corporate landscape.
