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Carob: From Growth to Green: Credible ESG Investments

Leveraging Green Finance to meet the Climate Crisis with Net-Zero

MA 2024
Keywords
Net Zero, Investment Fund, ME
Overview

Carob, an investment fund as a service, providing monetary help to ME's to grow their business with the expectation of also going Net Zero. We provide expertise, tools, and the support to transition to Net Zero. Because of our Net Zero alignment we provide credible ESG investable assets to investors looking to meet a green objective.

Collaboration

Our team collaborated with Cogo. A carbon management solution that provides us with the tool to help our ME's transition to Net Zero with real measurements and action plans.

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Discovery & problem

The Problem with Net Zero

SMEs account for 44% of Non-household green-house-gas emissions and make up 90% of the UK economy. While the UK has set a goal to reach Net Zero by 2050 commitments from companies are lacking serious action towards change. The lack of actionable transition is due to cost, insufficient expertise and data collecting tools. At the same time, Investors interested in divesting from companies that do not show sufficient sustainability plans lack access to credible ESG assets to meet their green objectives and offer green products to the market.

Opportunities

If a small percentage of the SMEs were to make actionable steps towards Net Zero and implement more sustainability measures that would make for a significant positive impact. We saw that many understand the importance of being sustainable, how that can minimise their future risks and meet their customers values. However the cost, lack of education and general complexity of measuring emissions and setting a strategy into action was too difficult to make a real commitment. The main issue of cost was an overarching theme during our research. We tried to approach various ways to the problem. We considered an employee up approach to corporate sustainability but that ultimately told us that education and pressures of the work environment and other priorities were factors that infringed employees interest in engaging with sustainability initiatives, especially ones that asked more of them than of the C-suites. It was imperative that we find the right pressure point to invigorating sustainability activity within companies.

This led to us identifying a very clear opportunity area: the gap of funds, education, and the strength of collective efficacy.

Intervention and direction

Our intervention appears to make the most impact by leveraging pressure and behavioral influence on a company's decision-makers, driven by investors.

Our solution

Our solution provides funding to MEs looking to grow their business with the expectation that they must also transition to Net Zero. However, to meet the gap of education, we also provide them with the team of experts that will help them measure their emissions, plan and execute their transition. With this service we can provide credible ESG funds to the investors who were unable to find measured funds to meet their Green Objective and provide products to their customers also looking to divest from fossil fuels.

Traditionally Green Funds invest in renewable or other green infrastructure, our products provide alternative approach.

How it works

We support MEs in a growth phase to transition to Net Zero by providing tools, guidance, and funding, transforming them into credible ESG investable assets.

We offer ESG funds to investors seeking impactful, measured investments to meet their Green Objectives. Our three supporting services ensure that our MEs achieve the expected transition and sustainability KPIs according to Net Zero metrics.

By alleviating the costly stress of transition for MEs and assisting with measurement and implementation, we foster a pro-environmental mindset among C-suite executives and employees as they witness their company taking meaningful action. Additionally, we bring more companies into the Net Zero alliance, aligning them with values that help combat the climate crisis.

SPECIAL
THANKS

We are extremely thankful that our tutor Richard showed great patience and trust in our research and process while we explored our project in the deepest depths. We are also very grateful to our partner Cogo, who we found during the last month of our project, who reaffirmed the need for our service and we included as a vital stakeholder of our service success.

Team
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