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💳 Stripe launched in 2011 as payment processing software for online businesses and currently serves businesses based in 47 countries. While the company began exploring carbon neutrality back in 2017, fast forward to today, the company has become a catalyst for driving the carbon removal market through Stripe Climate and Frontier.
Stripe’s Climate Commitments Bet On Advancing the Carbon Removal Market
💰 In 2019, Stripe made a small corporate commitment to spend $1 million buying permanent carbon removal. The reaction by both the CDR community and Stripe’s customers were so positive that it led to the development of Stripe Climate.
💚 Stripe Climate, makes it easy for any business to help fight climate change by directing a fraction of their revenue to carbon removal. Around 8% of businesses that onboard to Stripe sign up and have chosen to give nearly 1% of their revenue to CDR.
☁️ This ultimately led to the launch of Frontier in 2022, founded by Stripe, Alphabet Inc., Shopify, Meta, and McKinsey & Company Sustainability. Using an advance market commitment (AMC) model to buy an initial $1 billion of permanent carbon removal between 2022 and 2030.
How does it work?
📈 Through the AMC, it sends a signal to researchers, entrepreneurs, and investors that there will be a large CDR market and accelerate the availability of low-cost, permanent CDR technologies increasing the likelihood that we have the portfolio needed to tackle climate change.
👛 Through Stripe Climate, there are two ways to be an early buyer of carbon removal:
1️⃣ Climate Commitments
Clients can direct a percentage of revenue to earliest-stage CDR companies in the Frontier portfolio. Intended for businesses that don’t need to buy a specific tonnage to meet a climate target or simply want to help catalyse the CDR market.
2️⃣ Climate Orders
Stripe’s newly developed product in which clients can easily order a specific number of tons supplied from Frontier’s offtake portfolio. Best for those clients who want to meet specific targets or even want to offer CDR to their own clients.
👏 Stripe has been leading the way on corporate commitments in the CDR space. And not just through purchases, but setting that bar high for what it means to be serious about climate change and getting other corporates to follow suit. Keep up the great work!
📢Shoutout to the people at Stripe who are shaping the company’s climate commitments, including Nan Ransohoff, Jane Flegal, Hannah Bebbington, Lauren Polansky, Joanna Klitzke, Florian Maganza, Frauke Kracke, Neal Ulrich, Belal Aftab, and Judy Savitskaya.
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