The VCMI Claims Code of Practice (Claims Code) released yesterday is intended to be a rulebook that will bring confidence and credibility to voluntary carbon markets and to claims that involve the use of carbon credits. Between July and November, additional complements to the Claims Code will be released, including a monitoring, reporting and assurance framework. We highlight below some aspects of this 4-steps Claims Code.
Before making voluntary use of carbon credits and a VCMI Claim, companies shall adhere to all following four Foundational Criteria:
(1) Maintain and publicly disclose an annual greenhouse gas emissions inventory:
updated on the company’s website
including company-wide scopes 1 and GHG emissions inventory, according to standarts
and scope 3 emissions as set out by the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Attention to Chapter 7: Collecting Data
impact changes of company structure, methodology or data sources
(2) Set and publicly disclose validated science-based near-term emissions reduction targets, and publicly commit to reaching net zero emissions no later than 2050
follow SBTi criteria
disclose which party independently validated the target
including scopes 1, 2 and 3 GHG emissions
must disclose the definition of net zero they have adopted
(3) Demonstrate that the company is on-track towards meeting a near- term emissions reduction target and minimizing cumulative emissions over the target period. And publicly disclose:
the percentage of total GHG emissions reductions achieved
financial contributions made - and planned - dedicated to GHG mitigation across the company's value chain
the board-level governance structure, policies and actions related to oversight and/ or approval of the company’s climate strategy
(4) Demonstrate that the company’s public policy advocacy supports the goals of the Paris Agreement and does not represent a barrier to ambitious climate regulation
a public statement
After meeting these Foundational Criteria, companies will be categorized in the following ranges, in terms of high-quality carbon credits purchased, retired and properly considered (refer to image):
Silver: 20% and less than 60%
Gold: 60% and less than 100%
Platinum: greater than 100%
Click at the image below for the full set of materials.
