H&M comes out against carbon offset plan from climate targets group

illuminem summarizes for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:

🗞️ Driving the news: H&M has opposed a proposal by the Science Based Targets initiative (SBTi) to allow the use of carbon offsets in corporate climate targets
• H&M's head of sustainability, Leyla Ertur, expressed concerns that this would weaken corporate climate pledges and deter real decarbonization efforts within value chains

🔭 The context: SBTi is known for its strict adherence to science-based approaches for corporate climate transitions
• Recently, SBTi's consideration to include carbon offsets has faced backlash from climate advocates, as offsets might undermine efforts to reduce emissions directly
• H&M has been a significant supporter of SBTi, emphasizing genuine efforts to reduce emissions within its supply chain

🌍 Why it matters for the planet: Allowing carbon offsets could lead to companies relying on credits rather than making substantial emissions reductions, potentially slowing progress towards global climate goals
• Effective climate action requires substantial investments and innovation within companies' operations and value chains

⏭️ What's next: SBTi will finalize its stance on carbon offsets by July, with a full revision of the corporate net-zero standard expected by the end of the year
• The organization encourages feedback from companies and stakeholders to ensure robust and effective climate standards

💬 One quote: “The decision weakens corporate climate pledges and makes real decarbonization efforts within value chains less attractive.” - Leyla Ertur, H&M’s head of sustainability

📈 One stat: As of 2024, over 800 companies have validated targets, with thousands more committed to setting targets

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