Stockholm-based environmental impact platform, Milkywire, says that nine Nordic tech companies, including Spotify, Klarna, Avanza, Northzone, Mentimeter and BioGaia have committed to donate to its Climate Transformation Fund.
Milkywire's Climate Transformation Fund gives companies the opportunity to finance impactful and sustainable solutions needed to reach global climate targets as part of their commitment to climate action goals. The fund does this through three pillars: durable carbon removal, nature restoration and protection, and decarbonisation.
The fund's overall impact goal is to achieve the maximum long-term CO₂ reduction or removal per dollar spent, trying to avoid companies greenwashing or following through a box ticking exercise by simply purchasing carbon credits.
The charitable fund was set up in 2021 and has supported seventeen projects so far, such as Heirloom, a direct air capture company, Human Rights Watch’s work to phase out coal, and Warsi, a grassroots organisation working in forest protection.
"As the urgency for climate action grows, we have seen many companies invest in climate offsetting schemes that do not provide a meaningful impact on our planet," says Nina Siemiatkowski, CEO and founder of Milkywire. "The Climate Transformation Fund was created to offer a pioneering solution for companies seeking to maximise their impact towards decarbonisation. Internal carbon fees are a powerful way for companies to take responsibility for their emissions."
"By focusing on the climate impact of contributions rather than on making claims of carbon neutrality, we can support the solutions most needed to reach global net zero. These include methods ranging from nascent technologies for carbon removal to effective advocacy projects pushing for emission reductions," she adds.
According to Milkywire’s recently-published white paper, companies are advised to set internal carbon fees by implementing a fee that covers the full cost of their emissions. Klarna, for example, has set a $100 fee for Scope 1 (direct emissions), 2 (indirect emissions), and travel emissions plus $10 for the rest of scope 3. This resulted in $2.35 million to support climate projects in 2022 and a total of $5.07 million since 2020. Mentimeter, with a smaller footprint, has decided to implement a $100 fee on emissions across all scopes, resulting in a $90,800 donation.
“It has never been more urgent for companies to take action to mitigate against climate impact. Milkywire’s Climate Transformation Fund has proven to pave the way for real change in decarbonising our planet, and we are proud to be a significant contributor to the projects involved. At Klarna, we are constantly seeking new and innovative ways to protect our planet and encourage other major companies to follow suit," says Salah Said, Head of Sustainability at Klarna.
Milkywire is also creating knowledge-sharing spaces within which companies can recommend best practices on external impact, as well as how companies can contribute beyond financing - engaging customers, partners, and employees. Milkywire is supported in this by the carbon management platform Sweep. The approach for The Climate Transformation Fund is inspired by the WWF/BCG Corporate Climate Mitigation Blueprint, which mandates companies to measure, reduce and price their emissions, and use the funds to unlock climate solutions.
“With this collaboration, we hope to provide companies with a platform to collaborate and share their knowledge and expertise,” says Siemiatkowski. “The generous support of these nine companies demonstrates their understanding of the need for systemic change in the fight against climate change. By working together, we can accelerate the pace of decarbonisation and make a real difference in the fight against climate change.”
Lead image copyright MASH makes.
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