SBTi CEO Resigns Amidst Controversy over Carbon Credits: What’s Next for the Science-Based Targets Initiative?

In a shocking announcement, Luiz Amaral, the CEO of the Science Based Targets initiative (SBTi), has resigned after over two years in the role. His departure marks the end of a tumultuous period at the organization, which is renowned for validating corporate greenhouse gas emissions goals.

In a press release issued on July 2, Amaral stated that personal reasons were behind his decision to step down. His resignation will take effect on July 31, and Jenny Ehr, the chief legal officer of SBTi, will serve as the interim CEO while the board searches for a permanent replacement.

SBTi was established in 2014 with the aim of helping companies set voluntary targets that align their greenhouse gas emissions reductions with the Paris Agreement. Currently, 4,205 companies have SBTI-validated targets, with 449 working towards meeting its corporate net-zero standard. However, some companies have faced challenges in having their targets validated or have chosen not to adhere to SBTI’s framework altogether. For example, Microsoft and Walmart have faced difficulties in having their targets validated by SBTI.

Controversy surrounding the organization’s future arose on April 10 when it was announced that SBTi would consider allowing companies to use carbon credits to offset emissions. This led to calls for Amaral’s resignation from some SBTI staff and advisors.

Amaral was appointed as SBTi’s first CEO in February 2022, coming from founding partner World Resources Institute. Prior to this role, he served as the head of sustainability for South America with Rabobank. Under his leadership, SBTi transitioned from being managed by a group of founding NGOs to becoming a standalone charity with its validation arm as a separate subsidiary.

Franceso Starace, chairperson of SBTi reaffirmed its mission and assured a smooth transition following Amaral’s resignation “The crucial work of SBTi will continue,” he said “thanks to the committed efforts and decision of colleagues alongside technical council and all those within companies who put their trust in SBTI.”