Stockholm-based Milkywire, an environmental impact platform, announced on Friday that its ‘beyond-offsetting’ charitable fund, Climate Transformation Fund, has been boosted by several of Nordic’s leading tech companies.
Founded in 2018, Milkywire is a tech platform that helps businesses manage their environmental footprint and meet new requirements for taking action to address global climate, biodiversity, and pollution issues.
It uses digital technologies and feedback approaches to support a variety of programmes, from carbon removal research to on-the-ground nature restoration and species protection. This helps businesses to have a good influence on the environment.
Companies supporting the transition to net zero
Tech companies like Spotify and Klarna will donate more than $5M (approximately €4.52M) in total in 2023. Companies such as Avanza, Northzone, and Mentimeter will also show their support.
Additionally, in 2023, the Climate Transformation Fund will also be supported by BioGaia, PANGAIA, Wastebox, Steamery and Unbound Summits.
Nina Siemiatkowski, founder of Milkywire, says, “The generous support of these 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.”
Donations to and from the fund are managed by the charitable WRLD Foundation.
Climate Transformation Fund: Everything you need to know
The Climate Transformation Fund, curated by Milkywire, offers businesses an alternative to conventional carbon offsetting by funding effective and sustainable solutions required to meet global climate targets.
The fund supports organisations within three pillars: durable carbon removal, nature restoration & protection, and decarbonisation.
The aim of the fund is to produce long-term CO2 removal or reduction per dollar invested. Established in 2021, the charitable fund has backed 17 initiatives, including Warsi, a grassroots movement devoted to preserving forests, Human Rights Watch’s campaign to phase out coal, and Heirloom, a direct air capture enterprise.
Nina Siemiatkowski, CEO and founder of Milkywire, says, “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.”
“The Climate Transformation Fund was created to offer a pioneering solution for companies seeking to maximise their impact towards decarbonisation.”
According to a statement from Milkywire, the majority of the businesses making contributions to the fund have implemented an internal carbon fee or are in the process of doing so in order to raise money for climate projects.
As per a white paper released by Milkywire, businesses should establish fees that fully cover the cost of their emissions in order to set internal carbon costs.
For instance, Klarna has set a $100 fee for Scopes 1 and 2 (direct emissions, indirect emissions, and trip emissions), plus an additional $10 for the remainder of Scope 3. This led to a total of $5.07M since 2020 and $2.35M in 2022 to support climate projects.
With a decreased carbon footprint, Mentimeter has chosen to impose a $100 fee on emissions across all scopes, generating a $90,800 donation.
Siemiatkowski adds, “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.”
Looking for new ways to support climate solutions
Milkywire claims to be setting up new ways for companies to collaborate that want to implement internal carbon fees and support high-impact climate solutions.
The company will set up knowledge-sharing forums where businesses may suggest best practices for having an external influence and other ways to contribute besides financial support, such as involving clients, partners, and staff.
Boston Consulting Group (BCG), a management consulting firm, and the carbon management platform Sweep are assisting Milkywire with this.
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.
01
10 years of Dutch Startup Visa dreams: A look back with Denis Chernobaev