CEO of SBTi stepping down amidst debates over carbon offsets controversy
Dr. Luiz Amaral, the current CEO of the Science Based Targets initiative (SBTi), has announced his resignation, effective at the end of this month. Since taking up the position in February 2022, Amaral has overseen significant growth in the organization.
The SBTi, a global body that helps companies set ambitious emissions reduction targets in line with the Paris Agreement, has seen a surge in the number of companies adopting its standards, with over 5500 now on board. During Amaral's tenure, the number of companies with validated targets under SBTi has more than five-fold, and another 3200 are formally committed to the process.
However, Amaral's decision to stay committed to the standard operating procedure regarding carbon offsets has been met with a fierce backlash by some SBTi staff. The internal row stems from the board's consideration to accept carbon offsets to mitigate Scope 3 emissions, which encompass indirect emissions from activities such as the production of purchased goods and services.
Some staff are concerned that the inclusion of carbon offsets could allow major corporations to greenwash their carbon footprints without reducing emissions. They argue that offsetting emissions should be a last resort, not a substitute for actual emissions reductions.
In response to these concerns, Amaral emphasised that not all Scope 3 emissions are equal in terms of materiality, control, and location (upstream vs downstream). He highlighted that the SBTi's approach to carbon offsets is rigorous and transparent, ensuring that any offsets used are verifiable, additional, permanent, and socially beneficial.
As Amaral prepares to step down, Susan Jenny Ehr, the current chief legal officer, will serve as the interim CEO. The search for a permanent replacement has not been announced.
In his leaving speech, Amaral highlighted significant growth potential in Asia, where the number of companies adopting Science Based Targets has grown by more than 100% last year. He expressed confidence in the organization's future, stating that the SBTi is well-positioned to help businesses around the world transition to a low-carbon economy.
The internal row at SBTi remains centered around the board's consideration to accept carbon offsets to mitigate Scope 3 emissions. It remains to be seen how this issue will be resolved, but one thing is clear: the SBTi continues to play a crucial role in the global fight against climate change.
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