Shopify, the $6.7 billion e-commerce company, has shared three valuable lessons from its four years of investing $55 million in 27 carbon removal startups. As part of its sustainability strategy, Shopify has been actively supporting early-stage startups that focus on innovative methods of removing carbon dioxide from the atmosphere. These investments are aimed at offsetting Shopify’s own emissions without relying on traditional carbon offsets.
To date, Shopify’s investments have successfully removed 84,400 metric tons of CO2, a significant increase from previous years. The company expects to remove an additional 254,000 metric tons through recent deals that will start delivering results this year.
Shopify’s approach involves utilizing its Sustainability Fund, which supports renewable energy procurement, green building leases near public transportation hubs, and carbon sequestration projects that are expected to have long-lasting impacts. The company is also part of the Frontier group, which is committed to investing $1 billion in launching more carbon removal projects.
Stacy Kauk, Shopify’s head of sustainability, acknowledges that the challenge of carbon removal cannot be solved by individual companies alone. However, she believes that by kickstarting the market and encouraging corporate interest, significant progress can be made.
One key lesson Shopify has learned is the importance of a reliable and durable verification system for carbon removal solutions. To address this, the company is pushing for the development of industry-wide standards and verification methodologies. By working with established registries and collaborating with startups, Shopify aims to ensure transparency and credibility in the carbon removal space.
An area of potential that Shopify has identified is ocean alkalinity enhancement. This method involves increasing the alkalinity of the ocean by adding minerals, such as olivine and basalt, to beaches or the water’s surface. This process converts dissolved carbon dioxide in seawater into carbonates and bicarbonates, which can effectively trap atmospheric CO2 over extended periods. Although scientists have expressed concerns about potential unintended consequences to marine ecosystems, Shopify is actively working with three startups in this field.
Kauk emphasizes the need to find a framework that addresses stakeholders’ concerns and leverages the ocean’s potential for carbon removal. This approach could reduce costs associated with land use change and electricity usage, making it an attractive option.
Shopify’s commitment to carbon removal showcases its dedication to sustainability and combating climate change. The company’s investment in innovative startups and push for industry-wide standards can serve as valuable lessons for other businesses. As carbon removal becomes increasingly crucial in the fight against climate change, collaboration and innovation are key to achieving significant progress.
