Net Zero: WayCarbon implements decarbonization methodology into Climas
In August, WayCarbon announced the new Net Zero module for Climas, its integrated ESG and GHG management software. This new feature makes it easier for companies to simulate different alternatives for establishing their climate commitments. The aim is to analyse the projection of future business growth scenarios and identify the best technologic and investment choices to make the decarbonization journey a reality.
WayCarbon’s new offering provides the market with the necessary intelligence for a scientifically and financially structured decarbonization plan. It is a solution that provides visibility of the costs required to implement operational changes in the short, medium, and long term. In other words, it’s a solution that shows how an organisation can grow while reducing its greenhouse gas (GHG) emissions, taking into account all of its production processes and expansion plans.
One of the major challenges facing organisations committed to decarbonization strategies is visibility of the changes and investments required to achieve these goals. WayCarbon’s proposal is precisely to provide a strategic outlook that allows the company not only to have visibility into all the assumptions and definitions in the construction of the decarbonization plan, but also future monitoring, including revision of assumptions, incorporation of new mitigation projects and continuous monitoring of results over time,” explains Carla Leal, WayCarbon’s Digital Director.
Net Zero Agenda and the capital market
There is growing pressure from banks and investors to make their investment portfolios Net Zero. The global institution The Net Zero Asset Managers Initiative currently has over 315 signatories and $59 trillion in assets committed to the Net Zero goal by 2050. What’s more, four of the world’s five largest asset managers (BlackRock, UBS, Fidelity, and State Street) are part of the initiative, indicating that the global capital market is firmly mobilised to drive the Net Zero agenda forward.
This scenario is supported by Kearney’s study of the country’s 38 largest companies – “Brazilian Market: a journey towards net-zero” – which points out that the main motivating factor for companies to decarbonize their operations is the ease of attracting investment. Nearly all companies that Kearney identified as advanced in the net zero journey had access to some form of green investment or financing.
What is the potential of the Net Zero market?
To be considered Net Zero in terms of emissions throughout its value chain, an organisation must not only eliminate the direct emissions from its operations, but also address the indirect emissions associated with its suppliers. This market is expected to be worth around US$ 16 billion by 2028, according to the independent global consultancy firm Verdantix.
Companies committed to science-based targets (SBTi) are at the forefront of the Net Zero agenda but there are still gaps in understanding how to implement it. Leal says:
“If a company aims to grow by 50% by 2030, the volume of emissions will also grow proportionally if nothing changes in the production process. Companies need to take this into account and financially plan for the necessary investments in relation to costs of decarbonization in future scenarios. Our solution aims to shed light on this challenge in the short, medium, and long term.”
Launch Event
The launch of the module took place on the morning of 17 August at Santander’s headquarters in São Paulo and also marked WayCarbon’s 17th-anniversary celebration. The event was attended by the organisation’s staff and directors, representatives of Banco Santander (which invested in WayCarbon in 2022), journalists, and Climas clients such as Constellation, Raia Drogasil, Mitre, Allos (formerly Aliansce Sonae), and Tegra.
The opening keynote was delivered by Karina Litvack, Ambassador and Founding Chair of the Climate Governance Initiative, an organisation that mobilises boards of directors worldwide to strategically address climate change in business. Litvak is also a member of the Board of Directors of the Italian electricity grid operator Terna S.p.A., where she sits on the Controls, Risks, and Sustainability Committee and the Nominations, Governance, and Scenarios Committee. In this opening speech, Litvak provided a global overview of the evolution of the awareness of Boards of Directors regarding climate change around the world.
Felipe Bittencourt, CEO of WayCarbon, and Luiz Masagão, Treasurer of Santander Brazil, Head of LATAM Markets at Santander, and Chairman of WayCarbon’s board, then discussed how market access agendas will be impacted by the climate agenda in the coming years. “The launch of the Net Zero module will be transformative in WayCarbon’s journey. We believe that aligning the sustainability agenda with the business agenda is what will bring viability to a conversation that truly generates value for businesses and society,” said Masagão.
Bittencourt recalled that it took resilience to work with carbon in 2006, when the issue was not as widespread as it is today. “It is gratifying to have the opportunity to dream bigger, to increase our impact, with a strategic partner like Santander at our side. We’ve always believed that the financial sector is one of the most important drivers in accelerating the transition to a low-carbon economy,” he said.
To close the event, Carla Leal, Digital Director, and Henrique Pereira, Director of Consulting at WayCarbon, discussed the development process of the module, which brought together the company’s consulting and technology expertise. “It took us about a year to develop this product, but the knowledge behind it comes from our 17 years of academic and market experience in decarbonization projects,” pointed out Pereira.
