Businesses face more and more pressure from investors to act on climate change

U-Haul and supermarket supplier C&S Wholesale Grocers are striving to help offset their wood use by increasing donations to The Conservation Fund. This partnership has led to the promotion of the conservation of the Success Pond and its surrounding forest, the establishment of newly planted trees, and a significant investment in land easements that will restore and protect native habitats.

Running Tide Technologies, a shellfish hatchery in Maine, is betting on kelp forests as a way to store carbon deep in the ocean and sell that carbon to corporations looking to combat climate change and offset their own emissions. The startup is growing mini-farms of kelp on biodegradable floats and after a few months, they sink to the seafloor. More research is needed to see if it works, but they already have about 1,600 floats adrift in the ocean and the e-commerce company Shopify is the first to buy carbon offsets from them.

Maryland farmer Trey Hill became the first seller in a tech startup’s carbon marketplace, paying him $115,000 for initiating regenerative farming practices. By introducing cover crops, he has been able to sequester about 8,000 tons of carbon in the soil, which then buyers can purchase the credits to offset the carbon they produce. If more farmers get on board, supporters say it can be a tangible solution to curbing climate change.

Prime Coalition is financing clean tech startups and climate-focused technologies that often don’t get a lot of funding. These technologies can be expensive to build and don’t generate profits immediately. So far, the public charity has secured $89 million that it has given into 18 energy ventures. “What’s important here is that the climate crisis is such a large-scale problem that we need lots of different types of solutions,” says Sarah Kearney, founder of Prime Coalition, “and so we need to match up right-fit capital to each kind of solution.”

Philanthropies are funding “tough tech” startups that are developing technologies to cut greenhouse gas emissions and mitigate the effects of climate change. Since 2014, the nonprofit Prime Coalition has channeled more than $24 million from wealthy donors and foundations to 10 ventures focused on that goal. Not all of their investments, though, have paid off. Yet, some of these initial investments could lead to widespread solutions to the world’s climate crisis.

Due to pressure from shareholders and asset managers to invest sustainably, there has been a rapid growth in environmental, social, and government investing. Assets in sustainable mutual funds globally reached $1 trillion in the second quarter of 2020 and fund managers rolled out 107 new sustainable funds in Europe. Despite this increase in interest, shareholders continue to grapple with balancing sustainable considerations with investment decisions.

Climeworks, a Swiss start-up, is using technology to suck carbon out of the air and turning it into stone, essentially cutting greenhouse gas emissions from the atmosphere permanently. Their plant in Iceland is able to turn 50 tonnes of carbon to stone per year. While that amount of carbon won’t solve the climate crisis, they are expanding their work to other countries and are launching a personal carbon removal subscription service as a way for the travel industry to help offset the carbon that they emit each year.

Indigo Agriculture, an ag-tech startup, is looking to pay farmers to draw carbon dioxide from the air and store it in the ground, which could help mitigate the effects of climate change and lower greenhouse gas emissions. Other companies that want to offset their own emissions can purchase credits on a carbon exchange. While the market hasn’t opened yet and some experts are skeptical about how much carbon the soil will absorb, Indigo Agriculture has signed up more than 5,000 farmers representing 19.8 million acres of land.

A company called Mootral is studying whether changing a cattle’s diet could make the animals belch and flatulate less methane. They created a food supplement out of compounds from garlic, citrus, and other additives, that in early tests, has shown a decrease in a cow’s emission of the greenhouse gas. If they can get investors on board and scale it to different breeds of cows and in different climates, it could help the agricultural and farming industries to combat climate change.

The town of Athens, Georgia has committed to a 100% renewable energy pledge. Both the local government and local businesses are working towards it by implementing sustainable practices such as solar panels and wastewater pretreatment systems.