Verdane – a specialist growth equity investment firm headquartered in Oslo, has become the first private equity investor to announce a commitment to neutralize all its future residual emissions with permanent carbon removal technologies.
The company made an official announcement that it aims to achieve net zero on scope 1 and 2 emissions in 2022 and reduce scope 3 emissions (except portfolio company emissions) by 65% until 2030 versus 2021.
“It is now established that carbon removal is going to be a necessary complement to – though of course by no means a substitute for – dramatically cutting global emissions. Pioneering firms in this area need pioneering customers willing to accept higher short-term costs for higher quality offsets. Verdane is calling on both businesses and the worldwide asset management community to join in this effort to help create a global market where there isn’t one today,” said Bjarne Kveim Lie, Managing Partner and Chief Investment Officer at Verdane.
The technologies it counts to do that include Climeworks’ direct air capture and storage solution. Apart from Climeworks, the company is also partnering with Heirloom and neustark. Neustark removes CO2 from the air and permanently stores it in recycled concrete while Heirloom uses a natural carbon sink process called carbon mineralization.
Climeworks’ direct air capture solution is provided by Orca – the largest direct air capture commercial project that was commissioned in Iceland on September 8th, 2021.
Verdane has selected the above companies after a rigorous due diligence process where their track record of excellence in the field of carbon removals was highlighted. The companies also have agreements with early supporters like Microsoft, Stripe, Boston Consulting Group, LGT Group and Swiss RE which boosts their validity.
Verdane’s first step is to purchase carbon removals covering its 2022 and 2023 Scope 1-3 forecasted emissions. The credits will be spread over several years, covering several thousand tons of CO2 as the company is predicting future prices for such services will drop.
The investment firm’s decision to go carbon neutral also follows the newest report by the IPCC that depicts carbon dioxide removal as essential for mitigating climate change. The company is hoping to set an example for other organizations to follow suit and make a difference in the future widespread adoption of climate change technologies.