This Time Is Different: How Automation Can Win the Fight Against Climate Change

Source: https://base10.substack.com/p/this-time-is-different

Highlights

• Raving about the software, Jennifer’s friend insists the tool has actually increased cart conversion rates by 25% and customers are elated to have the option to feel good about their purchases. Jennifer is stunned that this is good business!
• Addressing a company’s environmental impact is increasingly becoming a part of a greater group of decisions that executives have to make as their business interacts with different stakeholders.
• Corporations have taken real leadership positions on these three topics as they’ve realized that being an ESG leader is good business, and it’s important to communicate your ESG posture to customers, investors, and other key stakeholders. In fact, they are being rewarded for it—ESG leaders have outperformed the S&P 500 by 100% over the last 5 years
• At Base10, we are seeing renewed interest from entrepreneurs and investors who are actively building tools to help companies better manage their ESG programs, making consumers aware of their environmental footprint, and organizing voters on important new policies related to ESG topics.
• Climate change is one of the most important issues our planet faces, and it’s not surprising that it is increasingly grabbing more and more attention. Innovation is happening here in many dimensions—new research is identifying ways to put carbon in the ground rather than the air while others work to create or modify plants to more effectively consume CO2—and while we are excited about these opportunities, we are focusing our research in this piece specifically on the broader opportunities for software to improve our climate position.
• But there is an existing large software market—called GRC or governance, risk and compliance software—that historically has focused on some (if not all) of these ESG topics.
• Only 0.5% of annual global emissions are offset today, but the sheer volume of emissions presents a potential $700B opportunity for companies solving. That kind of TAM doesn’t come without challenges, however. There is a big debate around the accuracy of carbon offset calculations on both the offset provider side and the supply chain side. Carbon Offsets
• Given the fact that there are multiple approaches to tackling climate change, climate-conscious consumers are developing their own opinions about what approach makes the most sense to them. If brands can show that their sustainability efforts are multi-faceted, they will be able to build loyalty with a broader customer base.