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Climate Emergency

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One small step for you, one giant impact for humankind

If you could only do one thing to minimise your environmental footprint, what would it be? There are so many options, and whilst it is good to have choice, we can find ourselves paralysed by the sheer amount of choice. We elect to use glass bottles instead of plastic, before hearing that this generates more emissions in transport; we buy products accredited as containing sustainable palm oil before discovering we have been <a href="https://www.thenation.com/article/archive/big-business-has-a-new-scam-the-purpose-paradigm/" target="_blank" rel="noopener">deceived</a>; we recycle, before finding out that much of this is ending up in<a href="https://www.independent.co.uk/news/uk/home-news/recycling-waste-uk-overseas-landfill-pollution-nao-environment-defra-a8458991.html" target="_blank" rel="noopener"> landfill</a> on the other side of the world.
Whilst it is important to do our research and make the right decisions where we can, wouldn’t it be nice if there was a quick fix out there, where a one-off decision could outsource some of that eco-stress to the people with the time and expertise to see the bigger picture, ensuring maximum impact with minimum effort?
Well, it turns out there are, none more so than:

Since the Paris Climate accord in 2015, banks have invested <a href="https://www.ran.org/wp-content/uploads/2020/03/Banking_on_Climate_Change__2020_vF.pdf" target="_blank" rel="noopener">$2.7 trillion</a> in fossil fuel companies (to say nothing of tobacco, arms, gambling and other dubious investments). And unless you are explicitly invested in an environmental scheme, this likely includes<a href="https://www.greenpeace.org.uk/news/barclays-banks-climate-change-fossil-fuels/" target="_blank" rel="noopener"> your money</a>. Conversely, it is estimated that it would cost about<a href="https://ourworldindata.org/how-much-will-it-cost-to-mitigate-climate-change" target="_blank" rel="noopener"> $300 billion of investment</a> per year to prevent runaway climate change by the oft-cited cut off point of 2030 (so, about $1.5 trillion in total). At least this makes the solution fairly obvious: reinvest the money currently supporting climate-damaging activities into those that support our planet’s health.
Despite being the driver of so much destructive activity, finance often slips under the rug as a point of focus for those who care about the climate. Because we do not see what our finances are doing on a day to day basis, we do not associate them with the havoc they can cause. But just as factory farms were causing environmental (as well as animal) harm before the public had any idea, so too are your finances. In fact, because of the relative wealth of the average western citizen, the choice you make regarding how your money is put to use is likely the most powerful one you can make in terms of your relative impact as an individual.
A common argument is that green investments are riskier, constituting a new and unpredictable market built around unproven, fledgling companies and technology. But this is not born out on the level of data, or common sense. Traditionally, fossil fuels have been considered a safe investment because the industrial-era economy was based upon them. But this is beginning to change. As the connection between our economy and the broader ecology on which it is dependent becomes more and more stark, investors are waking up to the unsustainability and counterintuitiveness of deleterious investments, and beginning to divert finance in more positive ways. It is estimated for example that the $380 billion California state pension fund lost out on<a href="https://fossilfreeca.org/2019/11/11/study-ca-and-co-pension-funds-lost-billions-on-fossil-fuels/" target="_blank" rel="noopener"> $12 billion dollars</a> because of its decision to uphold investments in fossil fuels over the last ten years. And there is growing evidence to suggest that ESG investments generally (those that look at environmental, social and governance  metrics of company performance, as opposed to merely financial) are <a href="http://www.apple.com/uk" target="_blank" rel="noopener">outperforming conventional investments</a>. 
Another common argument against shifting our finances is that it’s a lot of effort. But whilst the initial cognitive load of researching your options may seem large, the benefit is that, once we’ve made the switch, our finances do the work for us. For most of us, our interaction with our finances constitutes little more than an occasional balance check, so in terms of our day-to-day, investing our money for good requires very little from us. Moreover, with the migration to online (as opposed to high street) financial services, the process takes less time than ever before. No action for the climate comes without effort, but they don’t come much easier than this, especially considering how far that one action can go. 
Of course, the subject is vast and there is no substitute for doing your own research. Whilst this article makes no claim to offering any financial advice, here are a few places to get you started:

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The last year has seen a range of banks announcing new climate change related products, from Natwest offering the UK’s first <a href="https://personal.natwest.com/personal/mortgages/mortgage-types-and-rates/green-mortgages.html" target="_blank" rel="noopener">‘Green Mortgage’ </a>to the recently licensed <a href="https://www.forestcarbon.co.uk/our-partners/oxbury-bank" target="_blank" rel="noopener">Oxbury Bank</a> offering the first ‘carbon offset savings account’. But the bank which has always had the climate and ethics at its heart is <a href="https://www.triodos.co.uk/" target="_blank" rel="noopener">Triodos</a>, an ethical bank which uses the UN’s sustainable development goals as a yardstick for which companies it invests in. Rather than just avoiding harmful investments (eg tobacco, arms) they actively invest in communities, renewable energy schemes, sustainable food production and social enterprises generally. Their Energy Transition fund alone removed 60,000 tonnes of CO2 from the atmosphere and powered 30,000 homes with renewable energy.
If none of those feel right, you can find other options <a href="https://www.curiouslyconscious.com/2020/02/best-ethical-banks-current-accounts-uk.html" target="_blank" rel="noopener">here.</a>

For many of us, our pensions are the largest investments we have. In the UK alone, pensions account for <a href="https://makemymoneymatter.co.uk/" target="_blank" rel="noopener">£3 trillion</a>. But most of us are enrolled by our employers into a default fund, tending to invest in FTSE 100 companies without considering their carbon footprint. According to Good with Money’s Good Guide to Pensions, “nine times out of ten, pension savings are going into tobacco firms, oil and gas majors, mining, big pharma and big banks: social, climate and environmental breakdown, in other words.” This makes it essential that we take control of our pensions and redivert our investments to combat climate change. The easiest option is <a href="https://www.pensionbee.com/fossil-fuel-free-pension" target="_blank" rel="noopener">Pension Bee</a>, who have a range of environmentally friendly pension funds and provide an automated service which allows you to pool all of your previous pensions under one green plan. One option is their Future World Fund seeks to engage with fossil fuel companies and pressure them into divestment, whilst another is their Fossil Fuel Free fund automatically screens such companies from the outset. <a href="https://www.aviva.co.uk/" target="_blank" rel="noopener">Aviva</a> has also set a target of 2050 for its own auto-enrollment pensions to be carbon neutral. Whichever feels right to you, It really can take just a matter of minutes to make an impact that could last for generations. (To understand more about how our pensions are invested and what options you have, take a look at <a href="https://makemymoneymatter.co.uk/" target="_blank" rel="noopener">Make My Money Matter</a>).

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Whilst these low-effort, high impact solutions are addressed to individuals, they apply equally for businesses. Any climate-conscious business should seek to ensure their pension schemes are not harming the planet as indicated above. But simply by virtue of their size, finance isn’t the only easy win with significant consequences. Switching to renewable energy companies such as <a href="https://www.ecotricity.co.uk/" target="_blank" rel="noopener">Ecotricity</a> can make a massive difference too. Similarly, businesses produce a huge amount of waste, so you might consider using sustainable waste management services such as <a href="https://thefirstmile.co.uk/" target="_blank" rel="noopener">First Mile</a>, who recycle all possible waste and convert the remainder to be used for tarmac.

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Whether as individuals or businesses, every decision we make has an important part to play in the fight against climate change, from what we eat to how we shop and travel. But through our investments we can support all of these areas, from green infrastructure, to investment in the natural world and renewable energy. Through your finances you are not only the consumer but the investor, creating pressure from both sides. So take ten minutes out of your day today and see how your finances could start doing some of the heavy lifting for you. To learn more about how businesses can help, visit our <a href="https://ecologi.com/" target="_blank" rel="noopener">carbon offsetting for business</a> page.

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Hopescrolling: The good news timeline

It’s not all bad. While there’s a lot of negative news about the climate, let’s not forget the good stuff. Find climate wins, reasons to be hopeful and plenty of positivity in our good news timeline.

The good news timeline

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We know that funding high-quality carbon credits provides vital funding to impactful projects <a href="https://www.ipcc.ch/2023/03/20/press-release-ar6-synthesis-report/">which prevent and avoid emissions</a>.
However, it’s vital to look at the bigger picture: how carbon credits are being used is critical in taking meaningful climate action for our planet.
Simply using carbon credits to offset our business-as-usual emissions (often referred to as becoming ‘carbon neutral’) without taking steps to reduce those emissions directly <a href="https://wedocs.unep.org/bitstream/handle/20.500.11822/40875/EGR2022_KR.pdf?sequence=3">will not solve climate change</a>. In addition, there’s increasing pressure on businesses following recent crackdowns on green claims, such as <a href="https://www.theguardian.com/environment/2023/may/15/uk-advertising-watchdog-to-crack-down-on-carbon-offsetting-claims-aoe">claiming ‘carbon neutrality’ through offsetting alone</a>. So, across our industry, we need to rethink carbon offsetting completely, from the ground up.
Let’s unpack this.

Offsetting to compensate for business-as-usual emissions is OUT

Science is clear that minimising global warming requires substantial emissions reductions globally. The IPCC has called for <a href="https://www.ipcc.ch/sr15/chapter/spm/">50% reductions in emissions by 2030</a>, and global net-zero emissions by 2050, if we are to limit the global temperature increase to below 2°C, and as close as possible to 1.5°C. Every year that we continue to increase emissions, the steeper the curve needs to be for the world to decarbonise in time, 
Traditional carbon offsetting involves paying for carbon credits, each representing one tonne of emissions reduced or avoided by a project (like a solar farm). To offset, you would produce one tonne of greenhouse gas emissions through your business activities, and then offset that tonne by buying a carbon credit. 
However, traditional offsetting also gives free licence to businesses to continue generating emissions, or even increase them! Provided that they are also paying to offset them. You can see this in the visual below.
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Even when businesses fund high-quality projects and offset their emissions in full, those direct emissions are still taking place. The benefits of avoided emissions are effectively cancelled-out if the projects funded are only being used to offset your business’s continued emissions. The same is true, even if you are doing your offsetting with carbon removal credits &#8211; because the climate impacts of emitting and then removing greenhouse gases are not the same as simply not emitting them.
This is unsustainable. We need to reconsider completely the way we think about offsetting.

Reducing emissions whilst committing to fund high-quality climate‌ action is IN

For businesses to align their operations with <a href="https://www.iema.net/articles/ghg-management-hierarchy-updated-for-net-zero.">the science of climate change</a>, making direct emissions reductions <a href="https://ecologi.com/articles/blog/charting-the-path-to-net-zero-for-businesses">across your supply chain is paramount</a>. That’s a separate process, which offsetting doesn’t contribute toward.
Funding impactful projects through carbon credits still has a huge role to play. The SBTi (Science Based Target initiative) deems <a href="https://sciencebasedtargets.org/blog/net-zero-urgent-beyond-value-chain-mitigation-is-essential">funding carbon credits as an &#8220;essential&#8221; step</a> in the journey towards global net-zero. 
Supporting these high-quality carbon avoidance projects (that’s the same kinds of projects which are traditionally used for offsetting) is a perfect entry point for businesses to start their climate journey &#8211; whilst these businesses gather their plans to reduce their emissions directly.

Reducing your business emissions is a marathon, not a sprint

One of the SBTi’s core requirements for a business to achieve net-zero is to achieve a <a href="https://sciencebasedtargets.org/net-zero">minimum 90% reduction in emissions in most sectors</a>. This emissions-reduction journey will not be easy, since that’s a BIG task!

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Imagine having to reduce your financial budget by 90% &#8211; it would require a lot of planning, researching, and implementation, over a long period.

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Near-term targets are going to be crucial to break down those larger long-term goals. SBTi <a href="https://sciencebasedtargets.org/reports/sbti-progress-report-2021">research in 2021 showed that</a> if your business had set its science-based targets that year, you would need to make emissions reductions of just 4.2% per year &#8211; a much more understandable and manageable target for most businesses.
Remember as well that, even if simply offsetting your business emissions was your goal, then the higher your emissions are, the more it will cost to your business to offset them. This means that whilst there’s an enormous challenge in reducing emissions over a sustained period, it will be much better in the long run, both for your business and for the planet.

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This is a long-term commitment which all businesses need to undertake. That’s why funding high-quality climate action is crucial at the same time. You can give back to our planet throughout the process &#8211; and by doing so, you can have a real, measurable impact <a href="https://sdgs.un.org/goals">on people, communities and biodiversity</a>.

High-quality climate action that ‘goes beyond’

This funding of high-quality climate action outside of a business’s operations is referred to by the SBTi as ‘<a href="https://sciencebasedtargets.org/blog/going-above-and-beyond-to-contribute-to-societal-net-zero">beyond value chain mitigation</a>’ or ‘BVCM’. They highlight this as a critical contribution to reaching societal net-zero because it has a positive climate impact outside of your business’s direct sphere of influence. Your company can leverage its BVCM strategy to generate positive global change for our planet.
The great thing about BVCM is that it allows your business to select project types and locations that matter to you: you can build your own mix of projects to support.

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Don’t be put off by the scientific terminology. Simply, it means continuously funding climate action via high-quality carbon avoidance credits (and other types of impactful climate projects) whilst reducing your business emissions on your journey to net-zero.

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At Ecologi, we select the carbon avoidance projects we support according to our<a href="https://ecologi.com/articles/updates/how-ecologi-finds-and-funds-the-most-impactful-climate-solutions"> climate impact regionalisation strategy</a>, which focuses on directing funding towards locations and projects with the greatest potential impact.
This approach allows our in-house team to identify which, out of the ~200 quotes for carbon credits we review every month, are the most impactful.
The projects we support &#8211; which you can fund through <a href="https://ecologi.com/impact-shop">our Impact Shop</a> or through <a href="https://ecologi.com/business/integrations">our automations and integrations</a> &#8211; are also independently scrutinised by organisations like our friends at <a href="https://www.sylvera.com/">Sylvera</a>.

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Reframing carbon offsetting in a way that makes a real difference

Don’t let your business fall into the trap of thinking that buying carbon credits gets you off the hook by compensating for emissions which you haven’t attempted to reduce. That way of thinking is all wrong.
<a href="https://sciencebasedtargets.org/net-zero">The net-zero pathway</a> allows you to fund carbon removal credits to ‘offset’ your unavoidable emissions. However, you need to reduce your emissions as much as possible first, and only use removals for up to a maximum 10% of your initial emissions, and it has to be carbon removal, which is very expensive!
Think about your BVCM as funding climate action, full stop. It’s not about compensating to let your business keep producing emissions. It’s just one cost of running a responsible business, whilst you work to reduce your emissions directly. 
Don’t think about it in the context of letting your business carry on emitting as it was before &#8211; because that won’t contribute toward solving the climate crisis.

How to take the first step on your climate journey

Every business is different, and that means that although reducing emissions is vital, funding climate action might be the most suitable entry point for you, on your climate journey.
Through Ecologi, you can do this and more:

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If you’re still not sure where to start, <a href="https://ecologi.com/business/overview#get-in-touch">reach out to our friendly team of experts</a> who will be more than happy to find the right climate solution for your business and for our planet.

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Ecologi - Our story

How Ecologi grew from a climate action subscription to the ultimate climate companion for businesses. Read our story here!

<h2>The thought that turned to action</h2>
The story of Ecologi started one morning in 2019, when our founder <a href="https://www.linkedin.com/in/elliotcoad/">Elliot</a> picked up his morning coffee and wondered what would happen if he instead spent that money on addressing the climate crisis? 
As a keen ‘armchair environmentalist’ and self-confessed nerd, his research took him down a few rabbit holes and geek out sessions, as he explored the potential impact of just 10% of the world redirecting their loose change from cappuccino to climate action. 
He soon realised that there are ample climate solutions already available to address climate change and restore nature, and the world’s pocket change is more than enough to fund them. The idea just needed to galvanise support and turn into collective action. 
Ecologi began as a family and friend business. Elliot is experienced in product and development, and his wife <a href="https://www.linkedin.com/in/lucyjackk/">Lucy</a> is a website designer who is a deft hand with illustration and branding. They were joined by their friend <a href="https://www.linkedin.com/in/remotealex/">Alex</a>, a talented developer and entrepreneur who had just finished building a subscription product of his own.
Ecologi was born!

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<h2>Ecologi 1.0</h2>
Ecologi started as a subscription service for individuals to take climate action and was founded as a for-profit social enterprise to scale this idea rapidly. In a world of Netflix, Spotify, Headspace and countless other affordable subscriptions, we figured that there must surely be room in the market for something that could literally change the world? 
We decided on the name ‘Ecologi’ in awareness of two great threats to humanity; global warming, and biodiversity loss. These issues are interconnected, and we cannot solve one without the other. Therefore, the projects that we offer give our customers the opportunity to support both climate action and nature restoration in conjunction.
With an ethos based on transparency and putting our planet ahead of profit, we’ve grown a passionate community of over 18,000 businesses and 40,000 members in under five years. Through the support of our community, we’ve funded the planting of over 60 million trees, prevented over 2.5 million tonnes of CO2e from entering our atmosphere through certified carbon avoidance projects and achieved B Corp Certification. 
Our <a href="https://lookerstudio.google.com/reporting/adfb141d-4153-4c22-b6b4-976f7f3930b2/page/p_9zis9oxt3c">Public Impact Ledger</a> lifts the lid on what goes on behind the scenes here at Ecologi and delves into the evidence and detail of all things climate impact. Check out our <a href="https://ecologi.com/transparency">Transparency page</a> for evidence of our impact and finance, and meet the teams driving us forward.

<h2>The next chapter </h2>
We’ve had a great start, but there is still a lot of work to be done, and we can’t do it alone. So we’ve reset and refocused, with a bold new mission to inspire and empower businesses to accelerate global action on climate and nature. 
SMEs make up 99% of the UK business population and contribute half of all business-driven emissions in the UK. But according to a 2021 survey by the British Business Bank, only 6% are likely to have measured their carbon footprint in the last five years. <a href="https://ecologi.com/articles/blog/climate-commitments-survey">Our own research</a> also found that over four in 10 (41%) of SMEs would like their business to have a net-zero strategy, but feel confused about how to get started.
In the years ahead, the team at Ecologi will champion SMEs as green revolutionaries, empowering them on their journey to reduce emissions and take climate action. There are millions of SMEs in the UK and we believe that with the right support, they can help turn the tide on the climate crisis. 
SMEs are powerful enough to make an impact, agile enough to act fast, and unstoppable when working collectively. Just imagine what would happen if every SME rose up and took action as one? 
<h3>Check out our Climate Commitments Report</h3>
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 📁 Download the PDF report <a href="https://cms-assets.offset.earth/app/uploads/20230328090053/Ecologi_BBB_Report_V6.pdf">here</a>

<h2>Supporting the revolution</h2>
We’ve recently concentrated our efforts on being the ultimate climate companion for SMEs, no matter what stage of the journey to net-zero they&#8217;re on. From calculating their carbon footprint, to reducing their emissions, to funding climate projects, to sharing their impact with their community. And we’ve developed a suite of products to support that journey.
<a href="https://ecologi.com/business/zero">Ecologi Zero</a> is our free and easy-to-use carbon footprinting tool for UK-based SMEs. It’s designed to remove the high-cost, technology and skills barriers to carbon footprinting by connecting seamlessly with Xero accounting software to calculate emissions from existing business data, and requiring no expertise or experience. We’re really proud of it and its potential to be a game changer in enabling SMEs to take the first step on their net-zero journey. 
We’ve also launched our all-new <a href="https://ecologi.com/business/impact-shop">Impact Shop</a>. This pay-as-you-go store for climate impact lets businesses make a purchase for our planet with no strings or subscriptions attached. This allows SMEs to support whatever type of projects mean the most to them, and fund as much impact as they like, whenever suits them. From funding tree planting in specific countries to supporting community-based projects, SMEs can choose from a range of high quality climate solutions and know that they are making a positive impact.
Finally, <a href="https://ecologi.com/business/climate-positive-workforce">Climate Positive Workforce®</a> allows SMEs to bring their employees along on the journey of climate action. This product operates like a regular subscription, compensating for the approximate carbon footprint per number of employees in your business country of operation, while also funding the planting of trees through our trusted reforestation partners. In doing so, your organisation will visualise their impact in their virtual forest, learn more about the different carbon avoidance projects they support each month, and share their impact online.
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<h2>For our planet </h2>
Our planet. This is what brought us together. It’s why we started Ecologi. It’s the purpose of our community. The reason we take collective action. And when we speak to our community, they often say that they work with us so they can do something positive for our planet. 
As we look ahead to the next chapter of Ecologi, these three small-but-mighty words have become our north star, and the core of our brand. 
Now is the time to act together. Let’s rewrite our future. For our planet. 
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