Global CRM group Salesforce (NYSE: CRM), has launched its Net Zero Marketplace to connect credit buyers with sellers in a platform designed to rapidly scale climate positive impact.
- Salesforce platform to connect ecopreneurs with carbon credit buyers in transparent marketplace.
- The marketplace will drive carbon credit market transparency by aggregating third-party ratings and pricing for projects.
- Democratising access to transparent, credible high quality credits could transform the market at scale.
The driving concept behind the platform is to that makes carbon credit purchases simple and transparent, allowing organisations to accelerate climate positive impact at scale.
It is expected to provide a catalogue of third-party rated carbon credits and what Salesforce calls ‘a seamless ecommerce experience’ for purchasing them. Perhaps what is of most interest is its climate action hub — businesses or individuals — can learn about climate issues.
While it is broadly accepted today that a credible climate or sustainability plan should only use credits to offset 5-10% of overall emissions, there is no question that every tool should be used to address the climate, nature and biodiversity crises. Carbon credits are one important tool that – when made and used well – can play a critical role in an organisation’s climate strategy.
At its US launch in October 2022, Net Zero Marketplace will offer nearly 90 projects across 11 countries throughout Africa, Australia, Europe, Latin America, and the United States. Buyers will be able to see project descriptions, alignment with the UN Sustainable Development Goals, and, for many, official third-party ratings. For those using Salesforce carbon accounting system, Net Zero Cloud, the credits can be integrated into the system and tracked against current emissions.
The complexities of the carbon markets
The global voluntary carbon market is estimated to grow to $50 billion by 2030 as many organisations race to achieve their net zero commitments. Yet, organisations may not always know how to build a carbon credit portfolio — or even where to start. What’s more, the path to purchasing carbon credits can be is complex, and buyers want to trust that the carbon credit projects have a positive impact.
Challenges around finding the best price for a credit that has climate, nature and social co-benefits can be a challenge. There are questions about additionality, monitoring and verification, leakage and more. The platform is an interesting step towards the democratisation of the carbon credits market.
The importance of transparency in the carbon markets
Carbon credit projects go through a series of independent verifications against global standards. If they pass the verification process, the projects can issue carbon credits that can then be sold. Projects can include forest conservation, tree planting, wind farms, solar cookstoves, or better farming methods.
Finding and verifying a carbon credit’s quality can be difficult and time-consuming. Salesforce says that the Net Zero Marketplace will eliminates the uncertainty by aggregating and publishing third-party ratings for projects not locked behind paywalls or account registrations. This level of transparency will help empower organizations to determine which carbon credits are best for them.
“The uptick in extreme weather events shows that no one is spared from climate change — we need smart climate solutions now,” said Suzanne DiBianca, EVP and Chief Impact Officer, Salesforce. “Businesses aiming to achieve long-term emission reductions can complement their efforts with high-quality carbon credits. Net Zero Marketplace brings together Salesforce’s values, technology, and commitment to ecopreneurs to accelerate climate action.”
Inaugural launch partners from the carbon credits industry
Launch partners for the platform include carbon credit providers Climate Impact Partners, Cloverly, Lune, Pachama, Native, A Public Benefit Corporation, Respira International, and South Pole, as well as third-party rating companies Calyx Global and Sylvera, and curated climate portfolio provider CO2.com.
“Partnering with Salesforce to create this marketplace will turbocharge climate action and empower every company — large and small — to take responsibility for its emissions. We are proud to provide high quality offsets to clients who understand the value of compensating for their impact on the environment,” said Renat Heuberger, CEO, South Pole. “There is no time to waste, let’s take action today.”