H&M, the Swedish fashion giant, has voiced opposition to a proposal by the Science Based Targets initiative (SBTi), a prominent body on corporate climate targets. This proposal suggests allowing companies to utilize carbon offsets to achieve their environmental objectives.
In a letter to the SBTi’s board of trustees, Leyla Ertur, H&M’s head of sustainability, expressed concern about companies potentially using carbon offsets to reduce their overall carbon emissions by purchasing credits for carbon removal projects. Ertur emphasized that companies should instead focus on acting within their value chains to decrease greenhouse gas emissions.
Ertur stated, “The decision weakens corporate climate pledges and makes real decarbonization efforts within value chains less appealing. Allowing companies to substitute decarbonization actions with credit purchases would hinder the investments and innovation needed for systemic change.” She also highlighted that it would deviate from a robust scientific foundation and transparent, independent science-based standards, essential for effective climate action.
The SBTi faced criticism recently after its board indicated in April that it would consider adopting carbon offsets as a means for companies to reduce their carbon emissions, a reversal from its previous stance against offsets. Known for its science-based approach to transitioning companies to low-carbon operations, the SBTi has garnered respect within climate circles for ensuring companies adhere to their targets diligently. Over the past year, it removed several companies, including Amazon and Microsoft, from its list of validated businesses following concerns about their slow progress towards net-zero transition plans.
Ertur suggested that developing a mechanism within SBTi for companies to exceed their science-based targets through carbon offsets could be appropriate.
