SBTi CEO Luiz Amaral Resigns: Controversy Surrounds Climate Initiative’s Use of Carbon Credits

Luiz Amaral, the CEO of Science Based Targets initiative (SBTi), has announced his resignation after two years in the role. Amaral cited unspecified personal reasons for his decision to step down, which will take effect on July 31. Jenny Ehr, SBTi’s chief legal officer, will serve as interim CEO while a search for a permanent replacement is conducted.

SBTi was founded in 2014 to help companies set voluntary targets that align with the Paris Agreement’s greenhouse gas emissions reductions. By the end of 2023, over 4,205 companies had their targets validated by SBTi, including 449 striving to meet the corporate net-zero standard. While some companies like Intel and Amazon have chosen not to adhere to SBTi’s framework, others like Microsoft and Walmart have not had their targets validated.

The organization’s future came into question in April when it announced it would consider allowing companies to utilize carbon credits to offset emissions. This sparked controversy and led to calls for Amaral’s resignation from certain SBTi staff and advisors. However, Amaral took on the role of CEO in February 2022 and played a key role in transitioning SBTi into a standalone organization.

Francesco Starace, the chairperson of SBTi, reaffirmed the organization’s mission and promised a seamless transition following Amaral’s resignation. He expressed confidence in the dedication of SBTi’s colleagues, technical council, and companies around the world committed to fulfilling the goals of the Paris Agreement. Together they will continue to focus on supporting companies in their efforts to meet their environmental commitments.