New standards and public procurement requirements forcing companies to turn their net zero targets into ambitious, yet achievable decarbonisation plans. Today, more than 74 countries, representing over 80% of the world’s GDP and almost 70% of global CO2 emissions, have announced net zero carbon commitments. Moreover, more than 3,000 companies have set their own targets as part of the United Nations’ Race to Zero campaign, in recognition of the fact that the rules of corporate competition are changing, and that the level of global collaboration between companies and governments needs to increase. Most of the commitments share a 2050 deadline. This may seem very far away, but 30 years isn’t much when it comes to decarbonizing a company’s entire operations, and regulators know that. For this reason, governments are starting to align their own net zero targets with their purchasing strategy. A major public tender milestone in the United Kingdom In September 2021, the UK added environmental criteria to its public tender selection process for contracts of more than 5 million pounds. The measure applies to all departments in the central government, as well as executive agencies and public organizations. Among the selection requirements is the delivery of a carbon reduction plan, which must include a detailed breakdown of where the bidding company’s CO2 emissions come from, and what environmental and carbon reduction measures it plans to implement. Several large corporations are already reporting their Scope 1 (direct) and Scope 2 (own indirect) emissions as part of their energy and carbon reports, particularly since 2018. But the new rules go beyond that, requiring not only a commitment to achieve net zero by 2050, but also the reporting of parts of Scope 2 (value chain) emissions. These must be calculated according to the GHG Protocol recommendations, and include business trips, employee commute, transportation, distribution and waste, for the first time. Scope 3 emissions are a significant proportion of an organization’s carbon footprint, yet they are often the hardest to calculate and reduce. For the UK government, understanding, reporting on and reducing these three scopes of CO2 emissions will play a major role in the decarbonization of the government’s supply chain, and of the overall country’s economy. Related articles: EU ETS: What is it and why is it changing? Everything you need to know about the EU Carbon Border Adjustment Mechanism First international standards around companies’ net zero strategies At the same time, the recent launch of the Science-Based Targets Initiative (SBTI) corporate standard aims to put an end to ambiguous “net zero” targets that don’t put words into action. With this methodology, SBTI is giving companies the tools and guidance they need to build a credible and independently verifiable strategy. The goal is also to align short and long-term climate action with the target of limiting global warming to 1.5°C. In practice, the standard aims toward a 50% reduction of corporate emissions by 2030, and 90-95% by 2050. To achieve net zero, the emissions that can’t be eliminated (the remaining 5-10%) will have to be offset through the purchase of carbon credits. The standard requires companies to focus on rapid and thorough emissions reductions, to establish short and long-term targets, and to stay away from large-scale communication on their net zero goal until long-term objectives involving their entire supply and value chains have been achieved. The standard will help large companies elaborate concrete GHG reduction plans that can be verified by third parties, which is very likely to become a requirement from investors as well. Related articles: How to offer carbon-neutral products and services Carbon offsetting for SMEs Institutional investors demand greater ESG transparency  Pressure is also growing to comply environmental, social and governance (ESG) requirements from institutional investors (such as BlackRock, Vanguard, State Street or sovereign pension funds), particularly for large, listed corporations. In 2020, 85% of investors implemented ESG criteria in their portfolios.  These investors have noticed a correlation between ESG performance and value creation for shareholders. Additionally, ESG criteria are a tool to identify and mitigate environmental, social and governance risks. It has become apparent that companies with a strong ESG performance tend to be more efficient and productive, spend less money, create less waste and enjoy a stronger commitment from employees, which makes them more attractive to both capital and talent. Capital markets and increasingly considering emissions risks in the price of assets, and venture capital in transition technologies is at its highest point. ClimateTrade’s digital solutions to help companies achieve net zero commitments As seen above, investors’ and governments’ requirements around decarbonisation are becoming more stringent, and at the same time, consumers’ sustainability expectations are also growing. In the coming years, products will be compared according to their CO2 footprint, and this will influence purchasing decisions. Carbon-neutral products and services are a necessity, but achieving them is no easy task. It requires the automatic calculation of carbon footprint, and a reliable platform that can give clients complete visibility over where and how carbon credits are generated. ClimateTrade helps companies achieve their sustainability and carbon offsetting goals, strengthening their corporate social responsibility strategies through innovative digital solutions. Having noticed the demand for carbon-neutral products and services, we have developed the ClimateTrade API, the first API REST that can be integrated easily and safely into companies’ systems, so they can allow their own customers to acquire carbon-neutral products and services at check-out. In November 2021, we also launched the ClimateTrade Widget, a solution which presents similar functionalities, but with an even simpler integration process, which makes it perfect for SMEs and organizations with limited IT resources. The ClimateTrade API and Widget give clients information about the carbon footprint of their purchases, and allows them to invest in sustainable projects to offset it. We have already integrated these solutions into the systems of various international corporations. Check out our case studies. ……………… Want to find out more? Contact our experts.  Article written by Miguel López, Carbon Credits Manager, and Francisco Martín, Head of Engineering, both at ClimateTrade.

Sustainable tourism destinations are receiving European funds to improve environmental performance as a competitive advantage. The public entities managing Next Generation EU funds for the tourism sector are giving priority to projects focused on improving sustainability and environmental impact management, particularly in Spain. Focus on sustainable and digital tourism The sustainable tourist destination program 2021-2023 is a mechanism set up between the Government of Spain and the European Commission to support tourist destinations in their transformation towards environmental, socio-economic and territorial sustainability, and to help them develop resilience strategies against new sector challenges, such as climate change, excess tourism demand or health and safety crises. The program is expected to improve the competitiveness of tourism destinations, thanks to climate change prevention and mitigation actions and the reduction of greenhouse gas emissions, among other things. Sustainability, digitization and mobility ClimateTrade regularly participates in international events on sustainability, such as the Leadership Summit on Mobility Sustainability and Digitization that took place in Seville in November 2021. There, the key aspects of sustainable tourism management were discussed between leading operators. The main themes discussed at these events revolve around the policies, best practices and management tools for executives and operational, financial and marketing managers. The generally accepted roadmap starts with the calculation of greenhouse gas emissions, then their reduction as much as possible, and finally the offset of emissions that cannot be abated. Offsetting emissions also contributes directly to the sustainable development goals (SDGs), since mitigation projects support local communities as part of the positive impact of their actions. Another key aspect of sustainability in tourism is mobility and transportation: destinations should focus on the most polluting forms of travel, such as planes, combustion vehicles, buses and ferries. There is some good news in this area, as vehicles with a lower environmental impact come to market – electric cars, for instance. Finally, the trend towards digital management of tourist destinations and their environmental sustainability brings clear benefits for all those involved in the tourist experience: Visualisation and awareness of environmental data and impacts thanks to transparent digital portals Increased access to information that generates trust, such as flight, car and bus carbon footprint calculation methodology  Ability to identify which operators in the ecosystem have a neutral or positive impact, or are reducing their negative impact, for instance by voluntarily offsetting the carbon footprint of other operators or travelers Access to methodology and tools for carbon calculation and impact assessment for the entities managing tourist destinations The sustainable tourism trend is strong: on top of these efforts by public entities to make destinations more sustainable, business travel agencies have also started their journey towards better environmental practices, particularly in their B2B services. For example, the spanish travel agency association GEBTA recently signed an agreement with ClimateTrade to facilitate CO2 offsetting for the business trips organized by its members. Environmental impact monitoring and transparency Since sustainability is now a force for tourism, it is important to highlight how impact is measured and communicated to tourists, operators and those who manage tourist destinations. Solutions that allow easy visualization, such as digital transparency portals or dashboards, are playing an important role in this, displaying real-time and historical information. It will also be crucial to manage tourists’ user experience and perception of the destination’s sustainability, since this is becoming a key aspect of competitiveness in the comparison between different potential holiday spots. ClimateTrade’s digital solutions for sustainable tourism In the near future, tourist destinations will be compared, amongst other criteria, based on the carbon footprint generated by tourists and operators during stays, similarly to what is happening in other sectors and services. Concretely, CO2 emissions and environmental footprint will directly influence purchasing habits. We have already talked about the need for products and services to become carbon-neutral, but making this a reality is not easy – that’s also true about tourism. It is necessary to calculate carbon footprint automatically, and to have a reliable platform to give clients complete visibility over where and how carbon credits are generated. ClimateTrade supports companies in meeting their sustainability and carbon offsetting commitments, strengthening their corporate social responsibility strategy. Our innovative digital solutions, including the ClimateTrade API, have been implemented in various companies from the tourism sector, such as Iberia or Melia Hotels. Check out our case studies: Iberia Melia Hoteles  At the end of 2021, we launched the ClimateTrade Widget, which presents similar functionalities, but with an even easier integration process, making it perfect for SMEs and organizations that lack IT resources. The ClimateTrade API and Widget give clients information about the carbon footprint of their purchases and allow them to invest in sustainable projects to offset it. ClimateTrade recognized by the UN World Tourism Organization  Tourism can help to accelerate decarbonization goals with the help of companies like ClimateTrade, which in 2021 won the UN World Tourism Organization (UNWTO) SDG startup competition for SDG 13 (Climate Action). Natalia Bayona, UNWTO Director of Innovation, Education and Investments, commented on the competition: “Startups allow society to benefit from new advances in less time, and connecting their projects with potential partners and public and private sector investors helps to ensure their implementation. This flow of knowledge and investment is a novel paradigm to introduce cutting-edge technologies in tourism, for countries as well as corporations.” The UNWTO offers an online showcase for the best emerging companies within the global tourism innovation and entrepreneurship ecosystem, based on its mission to promote sustainable, accessible and inclusive tourism, as well as innovation and digital transformation as a management priority. ……………… Interested? Register on our marketplace and talk to one of our experts.  Article written by Francisco Martín, Head of Engineering and International Key Accounts Manager at ClimateTrade.