Amaral Resigns as SBTi CEO: Controversial Offsetting Policies and Future Uncertainty for Green Initiative

Luiz Amaral, CEO of the Science Based Targets initiative (SBTi), has announced his resignation after two years in the role. His departure will be effective on July 31, and Jenny Ehr, SBTi’s chief legal officer, will serve as interim CEO while a search for a permanent replacement is conducted.

In his time as CEO, Amaral has been instrumental in driving SBTi’s mission to help companies set voluntary targets that align with the Paris Agreement’s greenhouse gas emissions reduction goals. By the end of 2023, over 4,205 companies had targets validated by SBTi, including 449 striving to meet the corporate net-zero standard. However, some companies have chosen not to adhere to SBTi’s framework or had their targets invalidated.

The future of SBTi came under scrutiny in April when it was announced that companies would be allowed to use carbon credits to offset their emissions. This sparked controversy and led to calls for Amaral’s resignation from certain staff and advisors. Despite this controversy, Amaral played a key role in transitioning SBTi into a standalone organization after taking on the role of CEO in February 2022 and previously being head of sustainability for South America at Rabobank.

Francesco Starace, chairperson of SBTi, has reaffirmed the organization’s mission and promised a smooth transition following Amaral’s departure. He expressed confidence in the dedication of SBTi’s colleagues and technical council and emphasized their commitment to supporting companies worldwide in fulfilling their environmental commitments under the Paris Agreement.