- An age where entities will be valued not only by their innovative models, enterprise solutions, or diversified product portfolio, but by their suite of carbon and environmental, social, and governance (ESG) assets
- As Stripe Inc. plans for an initial public offering (IPO), markets could be seeing a valuation of $100 billion or more, based on its suite of carbon and environmental, social, and governance (ESG) assets
Stripe Inc, a well-known global digital payment gateway provider for businesses, has launched ‘Climate Orders.’ Climate Orders is set to make it easy for businesses to pre-order their preferred number of carbon removal tons via the Stripe Dashboard or API integration through Frontier—a market commitment cofounded by Stripe Inc.
We are moving away from an age where entities will be valued not only by their innovative models, enterprise solutions, or diversified product portfolio, but by their suite of carbon and environmental, social, and governance (ESG) assets.
In March 2023, Stripe Inc.’s valuation decreased to $50 billion from its previous estimate of $95 billion two (2) years ago. As Stripe Inc. plans for an initial public offering (IPO), markets could be seeing a valuation of $100 billion or more, based on its suite of carbon and environmental, social, and governance (ESG) assets.
With the latest expansion of its offering to include climate products, Stripe joins a list of companies and organizations already using Climate Orders in a bid to contribute to global decarbonization efforts. Such organizations include Watershed, Patch, and Terraset.
Climate Orders takes Frontier’s core expertise of finding, vetting, and contracting with the most promising carbon removal companies and makes it available to a much broader set of businesses.
We hope this unlocks even more of the demand needed to get carbon removal to a climate-relevant scale,” Lauren Polansky, Climate Product Manager at Stripe, said in a press release on November 30, 2023.
Stripe Climate’s product offering includes two major categories: climate order and climate commitment, all geared towards accelerating the transition to a net-zero future.
Climate Orders allow businesses to order a certain number of carbon removal tons to meet their climate target, while the Climate Commitment product is meant for companies looking to dedicate a portion of their revenue to support earliest-stage carbon removal companies scaling up their projects into large-scale operations.
With the world focused on removing about 5–10 gigatons of CO2 annually from the atmosphere by 2050, as estimated by the Intergovernmental Panel on Climate Change, the severe impact of climate change on businesses cannot be understated.
In 2022, climate change resulted in a 45% change in consumer patterns, a 46% increase in resource scarcity and cost, and a 41% increase in shareholder pressure, according to a survey conducted by Statista among 2000 C-level executives worldwide.
Climate change impact on business according to C-level executives worldwide in 2022
In response to the growing need for sustainable solutions for the decarbonization of the atmosphere in the future, Stripe, Meta, McKinsey Sustainability, Alphabet, and Shopify launched ‘Frontier’ last year to accelerate solutions that would help companies meet their net emissions target in the future.
According to Stripe, the carbon removal initiative would help the companies involved buy more than $1 billion worth of permanent carbon removal by 2030.
Focused on meeting their net emissions goal, thousands of climate-focused companies from at least 40 countries worldwide commit a fraction of their revenue to achieve climate goals.
