Climate Group Board Governance Crisis: SBTi Leadership Resignation

Bloomberg News (Apr 11, 2024) "Climate Group in Tumult Over New Guidelines for Carbon Market" documents a governance crisis at the Science Based Targets initiative (SBTi). On April 9, 2024, the SBTi Board of Trustees announced a controversial decision — taken after a six-month consultation — to extend the use of carbon-offset credits beyond current limits in the context of Scope 3 emissions abatement. Staff and the SBTi Technical Council, responsible for reviewing and approving SBTi standards, claimed they were not consulted, and a majority of staff signed a letter criticising the plan and its disclosure as undermining governance procedures. The crisis culminated in CEO Luiz Amaral stepping down at the end of July, with both the Board and CEO ultimately under pressure to resign. Useful case study for SEA mid-market boards on governance-process failures around sustainability standards.