Carbon finance consultancy South Pole announced on June 27 it has launched Funding Climate Action (FCA), a new climate claim and climate label to support companies in communicating climate action within and beyond their value chain.
Designed to be a marker of quality, the FCA label illustrates that an organization is taking credible climate action and responsibility for its emissions. In order to renew the label, organizations must transparently communicate their sustainability actions, which are reviewed yearly.
The new FCA climate claim has been tested with companies, non-government organizations, and policy experts and is in line with the upcoming Voluntary Carbon Markets Integrity Initiative’s Claim Code. The FCA will allow organizations to invest in verified mitigation contributions to cover residual CO2 emissions and declare credible green credentials.
South Pole conducted a poll among 1,500 consumers in the U.S. and Europe on the new climate claim. 84% of respondents said they are more likely to buy a product with the FCA label, and 78% said they believe the label signals climate action credibility.
“The private sector must take responsibility for their emissions and keep investing in climate action – that is non-negotiable,” said South Pole’s CEO Renat Heuberger. In order to gain support from stakeholders, organizations must offer an open and precise account of their sustainability efforts, he also said, adding that the FCA claim promotes transparency and accountability in the context of heightened scrutiny regarding corporate greenwashing or green-hushing.
According to the announcement by South Pole, the company embraces the collaborative initiatives of regulators and standard setters that aim to foster clarity and transparency, including the recently introduced ISO14068 recommendation, as well as contributions from other actors such as the VCMI, SBTi, and the Gold Standard.