Tech scaleups are backing Milkywire‘s mission to accelerate the transition to net Zero, providing a commitment to its ‘beyond-offsetting’ charitable fund: The Climate Transformation Fund. Donators include names like Spotify, Klarna, Sweep.
We’re in an exciting era of green innovation and companies, governments and individuals alike are increasingly showing commitment to making more sustainable choices. It comes as the impact of climate change makes itself ever more prevalent and the green transition takes centre stage.
Investment and financial support for green innovation are continuing to grow, despite economic uncertainty, and businesses are placing more and more emphasis on sustainability strategy. The target of reaching net zero is coming closer and European tech startups and scaleups are helping push the vision forward.
Founded in 2018, Milkywire is a planet-health tech platform that enables companies to fund trusted environmental organizations. It’s helped gather support for a wide spectrum of initiatives, from in-the-field nature restoration and species preservation to cutting-edge carbon removal research, enabling corporations to make a positive planetary impact.
In 2021, the firm set up a charitable fund, The Climate Transformation Fund, to drive forward the move to net zero. Now, this fund has secured backing from European tech scaleup leaders as the startup ecosystem rallies together to boost climate action.
Nina Siemiatkowski, CEO and founder of Milkywire: “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 maximize their impact towards decarbonization. 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.”
Leading Nordic tech companies, including Spotify, Klarna, Avanza, Northzone, Mentimeter have committed to donate to the initiative. Other companies supporting the fund so far in 2023 are BioGaia, PANGAIA, Wastebox, Steamery and Unbound Summits. the companies will contribute over $5 million in total in 2023 to climate projects focussed on contributing to global net-zero, beyond offsetting.
Salah Said, Head of Sustainability at Klarna: “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.”
The Climate Transformation Fund offers companies an alternative to traditional carbon offsetting through financing impactful and sustainable solutions needed to reach global climate targets, supporting organizations within three pillars: durable carbon removal, nature restoration & protection, and decarbonisation.
The fund’s overall impact goal is to achieve the maximum long-term CO₂ reduction or removal per dollar spent.
So far, the fund has backed 17 projects such as Heirloom a direct air capture company, Human Rights Watch’s work to phase out coal, and Warsi a grassroots organization working in forest protection.
The majority of the companies donating to the fund already have, or are in the process of implementing, an internal carbon fee to generate funds for climate projects.
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 USD donation.
In addition, Milkwire is setting up new ways for companies to collaborate. Partnerships and collaboration are key ways to boost the fight against climate change. To this end, Milkywire will create knowledge-sharing spaces within which companies can recommend best practices on external impact, as well as how companies can contribute beyond financing, such as by engaging customers, partners and employees.
Nina Siemiatkowski, Founder and CEO of Milkywire: “With this collaboration, we hope to provide companies with a platform to collaborate and share their knowledge and expertise. 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.”
Parisian carbon management platform, Sweep, is supporting this alongside Boston Consulting Group (BCG).
Securing commitments from European scaleups and startups reflects the strength of the continent when it comes to GreenTech and shows how Europe can become global leaders in green innovation.
Anna Skarborg, Head of Impact and Sustainability at Northzone: “We believe collaboration and innovation to be key drivers for meaningful climate action. This is why we are excited to contribute to Milkywire’s Climate Transformation Fund. By working alongside leading global companies in supporting high-impact climate solutions that go beyond traditional offsetting we hope to raise the bar for corporate climate action and to accelerate our transition to a net-zero society.”