The Intergovernmental Panel on Climate Change (IPCC) has declared that the world needs to reach net-zero carbon emissions by mid-century in order to avoid the worst impacts of climate change. At the same time, the IPCC has made clear that, even in global scenarios consistent with stabilizing temperature rise to 1.5 degrees, significant carbon emissions from several sectors of the economy will not be fully abated by 2050. In other words, even with aggressive decarbonization efforts, companies will need to step outside of their own value chains to net out some portion of emissions to reach zero by mid-century.
Pledge signatories can drastically reduce their own emissions while also investing outside of their value chains in ways that significantly contribute to the collective goal of achieving the Paris Agreement goals by mid-century. By doing both, we can increase our positive impact to mitigate the effects of global climate change. To do this right, it will take principled leadership, innovation, open collaboration, and a new level of accountability for businesses, governments, and partners who participate in this work.
Carbon mitigation outside of a company’s value chain should be additional, quantifiable, real, permanent and socially-beneficial, and signatories are encouraged to ensure offsets are verified and registered with a third-party verification standard.
The Climate Pledge will seek to engage and align with leading initiatives in developing more detailed positions on outside-value chain action, as those develop and evolve.