For many companies, the journey to net zero starts by aligning with two of the most influential organizations in sustainability. To measure and report emissions, businesses often turn to guidelines from the Greenhouse Gas (GHG) Protocol. When they’re ready to set goals, it’s the Science Based Targets initiative (SBTi) they seek help from.

These dominant standards for corporate climate strategy are now being challenged. Just this year, at least six new approaches to reporting and target-setting have been launched or piloted. This rush of alternative methods raises important questions about whether it will help or hinder progress to global net zero. It also reflects frustration with the slow pace of reform at the incumbent standard-setters.

“The original reporting frameworks were created mostly by NGOs as they were making the case for what to account for, in the spirit of what gets measured gets managed,” noted one consultant with experience in non-profits and government, who asked not to be named because they work with standard setters. 

Now we’ve moved from “what” to “how,” the consultant added. “Many of the new types of behavior — purchasing, investment decisions — necessary for economy-wide decarbonization do not show up cleanly in current reporting frameworks. There is a need for new ways to measure things.”

Alternative approaches

Here are some of the more notable new approaches, listed by launch date:

That’s just the ones born this year — there are others that predate 2025 but are still in early development. The AIM Platform, for instance, launched in 2023 and is now in pilot tests with Patagonia, Schneider Electric and others. The platform helps companies target and take credit for investments in supply-chain decarbonization.

Extending the current system

One theme that unites several of the new approaches is the freedom to use market-based mechanisms to meet climate goals. 

That includes carbon credits, which current SBTi rules say can only be used to nullify residual emissions at the end of a company’s net-zero journey. Guidelines from the Task Force for Corporate Action Transparency, for instance, detail how to report emissions reductions from credits alongside other mitigation efforts. 

Credits generated from value-chain investments are another focus. Patagonia, for example, hopes to use the AIM Platform’s methodology to claim credits, sometimes known as “insets,” that it will generate by funding the replacement of fossil-fueled boilers used by fabric suppliers.

Other frameworks, particularly Spheres of Influence, seek to acknowledge the impact of climate action that isn’t directly tied to a company’s emissions, such as lobbying for climate legislation. 

The approach resonates with Environmental Defense Fund Vice President for Net Zero Ambition and Action Elizabeth Sturken, who advocates for identifying the overlap between a company’s major emission sources and its opportunities to act. 

“Let’s lean in there and go big,” she said. “And that might not even be in their operations or supply chain. It might be in public policy, right?” 

Bringing in others

Another common focus is groups of companies that aren’t yet participating at scale in emissions reporting and target-setting.

The launch members of Carbon Measures, for instance, include several companies from hard-to-abate sectors: three from oil and gas (ExxonMobil, Adnoc and EQT), as well as a steel manufacturer (Nucor) and a metals and mining business (Vale). None of those five have set targets with SBTi. In fact, SBTi is not currently accepting submissions from oil and gas companies, after work with the industry on an emissions-reduction framework for the sector stalled.

Startups are also often excluded, but for very different reasons. SBTi rules prioritize absolute emissions reductions, but startups by definition need to grow market share, which almost always involves increasing emissions. The Climate Solutions Framework allows fledgling companies with low-carbon products to set targets by measuring their emissions against industry averages. This recognizes companies that lower emissions for a product category, even if the businesses’ own emissions increase.

What’s driving the action

The GHG Protocol’s first corporate guidelines were published in 2001. The SBTi is celebrating its 10th birthday this year. Experts who spoke with Trellis noted the positive impacts both have had. They also said the organizations’ standards are in need of reform. And while both the SBTi and the GHG Protocol are revising their standards, the pace of change has been too slow for some. 

“I fully support VCMI’s new code and I think SBTi could be in trouble if it doesn’t broaden its approach,” said a sustainability leader at a global strategy consulting firm, who also asked to remain anonymous to protect relationships with standard-setters. “Residual emissions are going to exist, and we desperately need to scale high-quality removal solutions.”

Supply-chain decarbonization is another area in need of updates. It’s “very scary” for large publicly traded companies to commit to time-consuming and costly projects without knowing how to claim the benefits, said Kim Drenner, head of environmental impact at Patagonia, one of the companies piloting the AIM Platform. 

“I understand why people are trying to bring these solutions forward,” she added. “The Greenhouse Gas Protocol needs to move a bit faster.”

The likely outcomes

Backers of most of the new approaches favor an evolution of existing standards. The AIM Platform and the Task Force for Corporate Action Transparency, for instance, are collaborating with the GHG Protocol and the SBTi and hope future versions of those organization’s standards incorporate their innovations. 

That may be less true for Carbon Measures. Amy Brachio, the initiative’s CEO, emphasized the need to include multiple stakeholders in the organization’s work to create a new accounting standard for emissions. But Carbon Measure’s approach draws inspiration from E-liabilities, an emissions accounting approach that rejects the concept of Scope 3. 

The focus instead is on individual companies measuring their direct emissions and allocating a portion to customers — an approach so fundamentally different to existing methods that were it to gain traction it might create a schism in emissions reporting and target-setting. The risk then is that stakeholders — investors, policymakers, consumers and other groups — would be left with a patchwork of standards that complicates policy and undermines attempts to hold companies accountable.

“This will get messier before it gets cleaned up,” said the consultant with non-profit experience.

The post Why 2025 has seen a flood of new ways to count carbon appeared first on Trellis.

The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.​

If it ever went away, the need for the sustainability field to make and deliver a business case has returned with a vengeance. The political backlash combined with skepticism over the performance of ESG funds and an unstable economy means sustainability teams are increasingly pushed to show how environmental and social initiatives support financial performance.      

A new report from Rochlin’s company, IMPACT ROI, puts the debate to rest over whether sustainability drives financial performance or functions purely as a negative cost center. Drawing predominantly from academic research conducted over the last 10 years, the report concludes that when done well, sustainability absolutely drives superior financial and competitive performance. (Rochlin will discuss the findings at Trellis Impact this week.)

Specifically, the report finds that when done well, sustainability can boost: 

  • Firm value by 36 percent
  • Profitability by 21 percent
  • Shareholder returns by 6 percent
  • B2C and B2B sales by 20 percent
  • Reduce employee turnover by 57 percent and
  • Reduce a range of financial and market risks by 30 percent

The research includes a wide range of quantitative benefits sustainability can generate related to financial key performance indicators, growth, risk reduction, cost reduction and responsible sourcing. Companies that engage in sustainability aren’t promised these results. Rather, those that follow a set of good practices increase their ability to deliver these kinds of benefits to the bottom line.

The report updates the 2015 framework that defines what “doing sustainability well” looks like. Summarized as Fit, Commit, Manage and Connect, the framework overlaps with the research on sustainability strategy and tension management we published last year.

One key area is for companies to commit to one or more value propositions for sustainability. Companies typically define value propositions for customers, but sustainability professionals should also define value propositions for internal customers such as the board, C-suite and business line leaders as well. Sustainability can support three high-level value propositions: 

Offer sustainability/corporate responsibility as a feature

Offering sustainability/corporate responsibility as a feature means expressing to key business stakeholders that the company has intentionally designed and built sustainability into its business model. In this way it becomes part of the brand promise communicated to consumers or business customers.

For example, Hewlett Packard Enterprise (HPE) has used sustainability as a tool to support business-to-business sales. The company incorporates sustainability into key marketing messages and sets up customer meetings to discuss HPE’s sustainability commitments, the customer’s sustainability needs and the intersection with HPE’s technology. “Our sustainability program has a demonstrably positive effect on our bottom line: we win business and attract investment by demonstrating the benefits of sustainability and of HPE’s leadership to our customers and investors,” the company states. The sustainability and sales teams collaborate to identify sustainability’s contribution to lead generation and in closing sales. The company estimates that in 2019, sustainability helped drive nearly $585 million in net revenue.

Use sustainability to drive down costs

Sustainability practices often align with efforts to use resources more efficiently, reduce waste and optimize operating expenditure and capital expenditure. For example, Apollo Global Management found its flagship portfolio companies that adopted a goal to lower carbon intensity by 15 percent have identified over $44 million in savings and $52 million in risk reduction costs. 

Grow through sustainability offerings

In addition to offering sustainability as a feature, companies can grow by offering products and services that help solve environmental and social challenges. Research finds that in the U.S. alone, the transition to a sustainable economy represents a $130 trillion opportunity between now and 2050.  

For example, BASF generated sales of $28.02 billion from what it calls “accelerator products” (products that make a substantial sustainability contribution in the value chain). The company is now focusing on setting new, more ambitious sustainability targets to continue its commitment to sustainable development.

Skeptics have long argued that sustainability sits outside of conventional business practice and represents taxation and regulation in disguise. This remains a powerful counterpoint that feels intuitive to executives and investors. 

The new report shows it’s time to tell a more intuitive story. Who would you rather do business with: a company you trust or one you don’t? A company that’s accountable and engaged in improving the environment, communities and people or one that isn’t? The new Project ROI report finds that sustainability helps improve the trust and favorability of a wide range of stakeholders including consumers/customers, investors and employees. The idea that trusted businesses perform better in the marketplace is far from rocket science.

Investing in trustworthy, responsible and accountable behaviors isn’t bad for business. To the contrary they’re a business imperative. It’s time to put aside the debate of whether sustainability supports business value creation and focus on how to use sustainability to support business in a way that will enable it to meet expectations and accountabilities to profit, people and planet at scale. 

The post The sustainability business case debate is over. Here’s why appeared first on Trellis.

Projects that prevent methane from entering the atmosphere are emerging as one of the fastest growing areas of carbon markets, with a surge in the number of credits being issued and interest from high-profile buyers such as Google and Netflix.

The attention is driven in part by the urgent need to capture methane, a potent greenhouse gas that the IPCC estimates is responsible for roughly a third of the global warming observed over the past century. 

Methane is also an attractive focus for carbon credit funding. It leaks from sources that are relatively easy to tackle provided the funding is there, including landfills, orphaned oil wells and disused mines. And compared with some other credit mechanisms, such as forest protection, project developers face a simpler task when it comes to estimating the climate benefits of their work.

Propelled by these factors and corporate demand, annual issuances of credits from methane projects have tripled to more than 15 million metric tons of carbon dioxide equivalent since 2019, according to Allied Offsets, a carbon markets data firm. 

Annual issuances of methane credits

Prominent deals include a purchase by Google of credits from a project that capture methane from a landfill in Cuiabá, Brazil, and enterprise software company Workday’s deal with Tradewater, a project developer that caps orphaned oil and gas wells. Netflix retired around 300,000 methane credits annually between 2022 and 2024, roughly 30 percent of the company’s total, according to the streaming giant’s sustainability reports.

The surge in interest is sparking other initiatives. Last month, for example, Vaulted Deep, a project developer that buries organic waste underground, said it would partner with Google and Isometric, a carbon credit registry, to develop methods for estimating methane emissions from organic waste.

The process is not well understood, in part because the waste can contain many substances. Putting a figure on it could boost the value of Vaulted’s credits, which at present are based on the quantity of carbon the company locks away in underground storage. This ignores the methane that would be released if the waste were spread on land or sent to landfill, as well as other impacts.

“Methane is a precursor to ozone, and ground-level ozone aggravates asthma,” said Bryan Epps, Vaulted’s head of commercialization. “It reduces crop yields, damages ecosystems and has all kinds of really significant negative effects.”

The range of methodologies open to project developers will also increase, with Isometric announcing this week that it will develop a new protocol for destruction of methane from landfills. “We’ve had really strong interest from major carbon removal buyers such as Google in bringing our scientific rigor and tech-enabled crediting into this important area,” said Lukas May, the company’s chief commercial officer. 

Quality concerns

Due diligence on methane projects can feel relatively straightforward, in part because the projects are often clearly “additional” — meaning that the capture of the methane would not take place without the funding from credit sales. But independent experts caution against assuming that all methane projects are high quality. Calyx Global, a carbon credit rating agency, shared data with Trellis showing that methane projects assessed by the company are over-represented in high ratings, but many low-quality projects in that class exist nonetheless.

Quality ratings from Calyx Global

One flag for buyers to watch for is an on-off pattern in credit issuances. Last year, CarbonPlan, a nonprofit that studies climate solutions, looked at 14 landfill projects and questioned whether six were genuinely additional. The researchers found that the six stopped issuing credits for years at a time, but continued to operate methane capture equipment during those periods. 

That the equipment ran continuously was good for the planet, the CarbonPlan team noted. “But offsets must be used to spur new climate action — not just reward existing actions.” 

The post What buyers need to know about the surge of interest in methane credits appeared first on Trellis.

Back Market, an e-commerce startup that specializes in secondhand electronics and appliances, is piloting a New York retail location amid double-digit sales growth projections both for its own business and the market category.

The 1,500-square-foot store in lower Manhattan offers products priced 30 percent to 70 percent less than new models — from gaming consoles, notebook computers and mobile phones to household appliances. A digital display refreshes in real time with prices from its e-commerce site, and that data is used to offer in-store dynamic pricing.

The site will be open through December, with the goal of collecting information about consumer preferences and educating them about alternatives to “fast tech” that is literally designed to become obsolete, said Laura Benton, general manager of the U.S. operations for Back Market.

“To really shift behavior, we can’t just be an online site. We need to meet customers where they are,” she said.

Although Back Market hasn’t committed to opening a permanent retail location, it’s using the New York store to gauge consumer trust in refurbished gear, draw more attention to its online site and gather more information about future buying intentions.

“The priority is the opportunity to hold our customers’ hands, and learn as much as we can,” Benton said.

Many factors are driving cost-conscious consumers to buy secondhand appliances and technology, including inflation, unpredictable U.S. import tariffs and higher prices on new products. Back Market tackles some of those dynamics head on, by merchandising “new” versus “old” models and challenging people to identify which is which. 

The store also offers seminars about repair, and repair services in collaboration with long-time partner iFixit, which publishes repair videos and how-to guides.

The 1,500-square-foot store offers products priced from 30 percent to 70 percent less than new editions. Credit: Trellis Group/Heather Clancy
Source: Trellis Group/Heather Clancy

Fast growth

Paris-based Back Market, founded in 2014, has raised more than $1 billion in venture capital from firms including General Atlantic. In January 2022, it was valued at $5.7 billion.

Back Market projects almost $3.5 billion in sales for 2025: transactions grew more than 30 percent in the second quarter alone, and it has more than 17 million customers. The company has sold more than 30 million devices since 2014, which it estimates helped avoid 2 billion kilograms of carbon emissions along with the chemical concerns of electronic waste. France is its biggest market, followed by the U.S.  

The secondhand tech category was valued at about $94 billion in 2023 and is forecast to grow at a pace of 15 percent annually, reaching $434.4 billion by 2034. High–profile retailers including Amazon, eBay and Walmart all support robust e-commerce sites for technology, appliances and electronics.

“The shift away from fast tech is no longer a niche trend, it’s becoming a cultural norm,” said Thibaud Hug de Larauze, co-founder and CEO of Back Market, when the company announced its latest projections. “Consumers are choosing durability, repair and reuse because it makes sense for their wallets and the planet.”

Back Market estimates that refurbished products account for 36 percent of all tech sales. Big brands such as Hewlett Packard and Lenovo are prioritizing design for repair, reuse and refurbishment, and training their sales teams to represent these products to customers. Lenovo, for example, recycled or reused about 129 million ThinkPad computers between 2020 and 2023.

What differentiates Back Market from its rivals is an obsessive focus on verifying the quality of products accepted for resale. All items sold by Back Market are inspected and refurbished to certain specifications. Products come with a one-year warranty. 

The company created a business-to-business version of its service, which more than 6,000 companies including Kering and Air France use to buy refurbished IT equipment. This is a practice that’s becoming more common among big companies that have big emissions or electronics recycling goals.

The post Why Back Market, the secondhand tech site, opened a store in NYC appeared first on Trellis.

As readers of our favorite sustainability newsletter —  Trellis Briefing — know well, staying current in this fast-changing field isn’t enough. The most successful professionals stay ahead. That means tracking each new regulation and all emerging tech, not to mention shifts in consumer demand and a crisis that changes daily.

Trellis Briefing offers a unique blend of management advice, regulatory updates, corporate case studies and more makes it a must read for anyone in the industry.

But we’re the first to acknowledge that there are more than a few other newsletters in our sector that we like — and read.

Whether you skim these “subscribes” as you sip your morning coffee or save them for a leisurely weekend scroll, they will keep you plugged into both what is and what’s next. 

If you want clean energy news that cuts to the chase …

Axios Energy takes the ever-changing world of sustainability, from policy moves to corporate shifts, and breaks it all down into bite-size, inbox friendly reports. From renewables to grid tech, Axios Energy is a must for anyone tracking the business of decarbonization. As you peruse their website, you’ll happily note that each read takes no more than three minutes. That’s shorter than the time it takes to brew a cup of joe.

If you want your sustainability news served with a side of global depth and data …

Few sustainability news outlets combine breadth and rigor like Bloomberg Green. From deep dives into the financial side of climate action to people-first stories of adaptation and innovation, its reporting highlights how environmental action is reshaping the economy, politics and culture worldwide. You might find your next sustainability breakthrough within its (digital) pages. 

If you want to follow the money …

Perfect for investors and founders, Climate Tech VC has proven itself a global voice in the business of sustainability. The weekly newsletter tracks deals, trends and venture movement across the industry, pairing data with insight to create the perfect window into where climate capital is flowing.

If you want to know what’s really happening in Washington …

While policies might not always make for attention-grabbing headlines, we’re never ones to discount the importance of staying informed. We believe policy reporting can and should be enjoyable, which is why Power Switch from Politico is on our list. The newsletter delivers sharp, inside-the-Beltway reporting on the political forces shaping today and tomorrow’s environmental scene. 

If you want your climate journalism to replace your daily doomscroll …

Heatmap does what few sustainability publications do: makes its readers laugh. It has carved a niche in the sector that is both entertaining and informative, covering everything from the cultural impact of sustainability to the politics of electrification. The newsletter delivers punchy climate coverage with bright colors, savvy pop culture references and jokes aplenty.

If you want energy media that connects the dots …

Few outlets capture the pulse of clean energy, renewables and the climate revolution like Canary Media. This nonprofit newsroom provides a clear-eyed look at decarbonization — from solar wind to electrification — while explaining what works, what doesn’t and why. The newsletter is committed to bringing solutions to a sector full of questions, connecting policy to technology and technology to people. 

If you want clarity in a feed full of headlines …

Carbon Brief offers its readers a daily breakdown of the biggest stories in sustainability while maintaining a voice that’s clear and factual. If you’re looking for crisp, data-driven stories that prioritize comprehension over haste, you’re in the right place. With charts that cut through the noise, data that doesn’t distort and analysis that connects policy and science, the newsletter delivers evidence-based journalism that keeps readers thoroughly informed without overwhelming them.

If you want to hear unique individual voices …

Climate activist legend Bill McKibben, co-founder of 350.org, brings decades of environmental insight to his Substack, The Crucial Years. With nearly 100,000 subscribers, it reflects on grassroots campaigns, policy battles and big-picture climate trends. Other notable climate apostles: Michael Thomas, whose newsletter Distilled boasts 16,000 subscribers, and Emily Atkin, whose 145,000-subscriber-strong HEATED was termed “impassioned [and] deeply reported” by New York Magazine.

The post 10 (other) newsletters to make your scroll more sustainable appeared first on Trellis.

As readers of our favorite sustainability newsletter —  Trellis Briefing — know well, staying current in this fast-changing field isn’t enough. The most successful professionals stay ahead. That means tracking each new regulation and all emerging tech, not to mention shifts in consumer demand and a crisis that changes daily.

Trellis Briefing offers a unique blend of management advice, regulatory updates, corporate case studies and more makes it a must read for anyone in the industry.

But we’re the first to acknowledge that there are more than a few other newsletters in our sector that we like — and read.

Whether you skim these “subscribes” as you sip your morning coffee or save them for a leisurely weekend scroll, they will keep you plugged into both what is and what’s next. 

If you want clean energy news that cuts to the chase …

Axios Energy takes the ever-changing world of sustainability, from policy moves to corporate shifts, and breaks it all down into bite-size, inbox friendly reports. From renewables to grid tech, Axios Energy is a must for anyone tracking the business of decarbonization. As you peruse their website, you’ll happily note that each read takes no more than three minutes. That’s shorter than the time it takes to brew a cup of joe.

If you want your sustainability news served with a side of global depth and data …

Few sustainability news outlets combine breadth and rigor like Bloomberg Green. From deep dives into the financial side of climate action to people-first stories of adaptation and innovation, its reporting highlights how environmental action is reshaping the economy, politics and culture worldwide. You might find your next sustainability breakthrough within its (digital) pages. 

If you want to follow the money …

Perfect for investors and founders, Climate Tech VC has proven itself a global voice in the business of sustainability. The weekly newsletter tracks deals, trends and venture movement across the industry, pairing data with insight to create the perfect window into where climate capital is flowing.

If you want to know what’s really happening in Washington …

While policies might not always make for attention-grabbing headlines, we’re never ones to discount the importance of staying informed. We believe policy reporting can and should be enjoyable, which is why Power Switch from Politico is on our list. The newsletter delivers sharp, inside-the-Beltway reporting on the political forces shaping today and tomorrow’s environmental scene. 

If you want your climate journalism to replace your daily doomscroll …

Heatmap does what few sustainability publications do: makes its readers laugh. It has carved a niche in the sector that is both entertaining and informative, covering everything from the cultural impact of sustainability to the politics of electrification. The newsletter delivers punchy climate coverage with bright colors, savvy pop culture references and jokes aplenty.

If you want energy media that connects the dots …

Few outlets capture the pulse of clean energy, renewables and the climate revolution like Canary Media. This nonprofit newsroom provides a clear-eyed look at decarbonization — from solar wind to electrification — while explaining what works, what doesn’t and why. The newsletter is committed to bringing solutions to a sector full of questions, connecting policy to technology and technology to people. 

If you want clarity in a feed full of headlines …

Carbon Brief offers its readers a daily breakdown of the biggest stories in sustainability while maintaining a voice that’s clear and factual. If you’re looking for crisp, data-driven stories that prioritize comprehension over haste, you’re in the right place. With charts that cut through the noise, data that doesn’t distort and analysis that connects policy and science, the newsletter delivers evidence-based journalism that keeps readers thoroughly informed without overwhelming them.

If you want to hear unique individual voices …

Climate activist legend Bill McKibben, co-founder of 350.org, brings decades of environmental insight to his Substack, The Crucial Years. With nearly 100,000 subscribers, it reflects on grassroots campaigns, policy battles and big-picture climate trends. Other notable climate apostles: Michael Thomas, whose newsletter Distilled boasts 16,000 subscribers, and Emily Atkin, whose 145,000-subscriber-strong HEATED was termed “impassioned [and] deeply reported” by New York Magazine.

The post 10 (other) newsletters to make your scroll more sustainable appeared first on Trellis.

While there are many personal impacts of climate change, new data shows people are most concerned about one: their health.

Globally, 45 percent of people believe climate change will negatively affect their personal health in the next five years, making health a potential rallying point for climate action, according to Trellis data partner GlobeScan. Additionally, 41 percent expect climate change to worsen their personal safety and well-being, while 40 percent foresee a decline in their emotional and psychological state, highlighting the deep and multifaceted anxieties people associate with climate disruption.

Financial vulnerability is also a concern, although less so than physical or emotional impacts, with 37 percent of respondents believing their financial situation will deteriorate due to climate change. This reinforces the tension between recognizing climate risks and hesitating to make financial sacrifices to address them. 

What this means

Health concerns are emerging as a strong personal link to climate change and a major opportunity to drive action. People are more worried about the effects of climate change on their health and well-being than on their finances, making health a powerful and universal motivator. Framing climate change as a public health issue shifts the conversation from distant environmental threats to immediate personal impacts such as cleaner air, safer water and reduced risk of disease. Highlighting these tangible benefits can make climate action more relatable and widely supported, helping to engage people beyond traditional environmental audiences.

Based on GlobeScan’s Societal Shift project, which surveyed nearly 32,000 people in 33 countries in July and August 2025.

The post Nearly 50 percent of people expect climate change to harm their health within 5 years appeared first on Trellis.

When the sustainability team at the outdoor clothing company Patagonia began developing a science-based target, it knew it faced a formidable challenge.

Upwards of 85 percent of Patagonia’s emissions are generated by suppliers. The company’s goal, validated by the Science Based Targets initiative in 2023, commits it to cutting those emissions by 55 percent by 2030. Yet Patagonia’s supply-chain network contains hundreds of companies, and it can exert only limited influence over each. 

Consider a supplier that dyes fabrics. Patagonia might want to help the company replace a fossil fuel boiler with an electric version — a costly project that would take years to complete. But Patagonia’s purchases may account for 1 or 2 percent of the supplier’s business. Why would Patagonia fund the change only to see the large majority of the emissions savings flow to the supplier’s other customers?

The solution was an innovative means of accounting for the benefits of such an intervention. Patagonia began work on the approach internally but soon teamed up with the Advanced and Indirect Mitigation (AIM) Platform, a cross-sector initiative crafting guidelines for what is known as insetting or value-chain intervention. The guidelines — currently being tested by H&M Group, Heidelberg Materials, Netflix and others — entered a second pilot phase last month and are due to be finalized next spring.

Patagonia has in fact signed a contract to replace a boiler used by a supplier in Taiwan. The supplier is currently monitoring its business-as-usual emissions, which will serve as a baseline against which to assess future savings. When the new boiler is in place, Patagonia will receive credits, known as environmental attribute certificates (EACs), that can be netted against emissions from dyeing across its Scope 3 inventory. The company expects to receive credits for 27,500 metric tons of carbon dioxide equivalent from the project this year.

Countless other projects could be catalyzed if the AIM Platform can develop trusted rules for guiding this and other value-chain investments. Pilot testers are using the rules to oversee funding for projects to purchase renewable energy on behalf of suppliers and customers, enable the switch to sustainable maritime fuels and reduce on-farm emissions.

“We see platforms like AIM as essential for scaling high-quality climate solutions across industries,” said Taylor Gries, sustainability manager at REI, another pilot tester.

One area the guidelines will cover is how credits are allocated. Kim Drenner, Patagonia’s head of environmental impact, said each contract has a defined period, ranging from 5 to 15 years, during which the company funding the work would receive credits covering all the emissions savings. Patagonia gauges the value of potential interventions by estimating the cost per ton of avoided carbon dioxide emissions. “That can range from around $90 a ton, all the way up to $300,” said Drenner.

Negotiating agreements with suppliers can be challenging, in part because relationships with other customers can be affected. Because Patagonia is netting all the savings against its emissions inventory, none of the supplier’s other customers can claim similar emissions savings. To guard against such double counting, the contract prohibits the supplier from sharing emissions data in a way that customers have come to expect.

“We’re coming in and saying, ‘We’re going to buy these EACs from you; you can’t send that data,’” said Drenner. 

This second pilot phase for AIM will focus on guidelines for assessing the quality of an intervention and how companies should measure the emissions savings. It follows an earlier test of rules for determining whether an intervention is part of a company’s value chain, and hence part of its Scope 3 emissions. The platform is a joint initiative of three non-profits: Gold Standard, the Center for Green Market Activation and the Center for Climate and Energy Solutions.

The post Patagonia pilot project shows how to catalyze climate finance across economy appeared first on Trellis.

Rebecca White grew up in West Texas cotton country, so she understands firsthand how climate stresses and volatile markets threaten the crop. Now, as chief product officer of the agtech startup Avalo, she hopes to help future-proof cotton from seed to field.

Avalo uses machine learning to accelerate what Gregor Mendel once did with peas. Its AI analyzes plant genomes and recommends which plants to crossbreed for desired fiber traits, sometimes even multiple qualities at once. In the process, Avalo says it enhances genetic diversity and helps farmers generate value through low-chemical, regenerative practices.

The pitch to fashion brands and mills: fibers tailored for softness, breathability, dye-readiness and other properties. “When we look at genetics for our seeds, we’re talking to spinners, millers and brands about what is important in the fiber characteristics for them,” White said.

Avalo’s momentum includes hiring Tricia Carey as chief commercial officer in April, a signal of ambitions to commercialize and connect with brands. The veteran of Lenzing, Gap and Levi’s earned industry respect trying to save Renewcell, the Swedish textile recycler reborn as Circulose after its bankruptcy.

White expressed hope for helping farmers stressed by a variety of factors, including the decline of cotton in fashion, capricious weather patterns worsened by climate change and volatile tariff policies. “If we’re not taking care of farmers, then they’re not going to farm anymore,” she said.

Competitors

Avalo raised $11 million in a Series A round in March, part of about $15 million total raised to date. (It also has support from Coca-Cola Ventures for sugar cane genetics.) The amount is modest next to peers in the biotech-for-ag space:

  • Indigo Ag (Boston) has raised roughly $1.5 billion, including a large 2023 round with Google Ventures participation, to track and monetize regenerative agriculture practices for multiple crops.
  • Puna Bio (Buenos Aires and San Francisco) makes microbial seed coatings from extremophile organisms to boost yields. Its $25.7 million in funding includes support from the Gates Foundation.
  • Galy (Boston) cultures cotton and other fibers in bioreactors, backed by $65.9 million in funding, including a Series B raise from Breakthrough Energy Ventures in 2024.

White says Avalo’s focus on using genetics to help farmers maximize yields and build soil health can ultimately complement other technologies such as those of Indigo Ag and Puna Bio.

“It’s great that there are those kinds of initiatives, but it’s still high risk,” said Margaret Bishop, an assistant professor at the New School in New York City. “You’ve got to have the investors and build out the supply chain.”

In the field

Avalo aims to enable sustainable farming practices already familiar to growers in arid regions around Lubbock. Delivering improved fiber quality with plant strains suited to local conditions could help farmers earn more for lower-emission cotton, while also assisting mills and brands to cut Scope 3 supply-chain emissions.

Unlike traditional ag models that sell seeds plus chemical inputs, Avalo’s team wants to work toward a future with fewer herbicides and pesticides, developing varieties with built-in resistance.

Although its seeds start in a lab, Avalo relies on open-air field trials, where bees pollinate plants. “We’re really trying to bring genetic diversity back into the fold, because traditional breeding programs tend to weed diversity out in an attempt to keep things simple and more streamlined,” said Avalo Chief Marketing Officer Nick Schwanz.

The company taps into public seed banks and private collections to study more than 500 cotton varieties. These include both wild and “feral” types, i.e. onetime commercial strains that naturalized over decades.

“The oldest one that we have is from the 1920s,” White said. “We put them all together in various different locations, and we see how they do in those different environments, and that helps us interpret the underlying genetic information.”

Natural and synthetic pressures

In fashion, cotton and polyester have traded places in dominance over the past 60 years. Polyester and other fossil-based synthetics now make up about 59 percent of the global fiber market, while cotton accounts for roughly 19 percent, according to the Textile Exchange 2025 Materials Market Report.

Virgin synthetics generally carry a higher greenhouse-gas footprint, but cotton’s cultivation uses more land and water. Cotton-growing regions in the U.S., India, Brazil and Pakistan face future uncertainty from increased droughts, rains and flooding.

Cotton uses as much as 11 percent of the world’s pesticides, and chemical weed control remains common, harming soil microbomes.

Brand pressure and regenerative shifts

Sustainability advocates argue that retailers and brands must rethink how they work with farmers, supporting transitions to regenerative and climate-resilient cotton. The Sustainable Cotton Challenge led by Textile Exchange has gathered 138 brands, from Levi Strauss to Kering, committed to sourcing certified environmentally responsible cotton by the end of 2025. Yet only about 22 percent of participating brands met that goal by the end of 2024.

Avalo positions itself as the bridge between regenerative farming and brands’ sustainability ambitions, aiming to give both sides a shared language and measurable results.

“Farmers know what happens to their cotton up to the point where it leaves the warehouse,” White said. “They produce it, they harvest it. It goes to a gin, it gets bailed, and then it goes to the warehouse, and then it’s sort of off in the ether for them.”

The opposite is true for the brands, who only tend to see the cotton after it lands at the spinner. “The brands are closer together in a perspective of sustainability with farmers than they think that they are,” she added. “The more that we can bring that understanding together, I think the more successful programs like ours will be.”

“It’s super early to know how much that’s going to speed up the development of new seeds, but really exciting if they can,” said Debra Guo, the cotton and crops lead at the Textile Exchange.

The post Avalo using AI to future-proof cotton appeared first on Trellis.

PepsiCo, like many other companies with environmental commitments set or reset in the 2020 timeframe, downgraded some goals within its 2025 sustainability reporting cycle — extending the deadline for its long-term net-zero commitment from 2040 to 2050.

Its decision to proactively communicate those changes, however, is rare in a year when other high-profile companies are downplaying or delaying communications about their ESG progress. At least half of the companies that published reports during the first half of 2024, for example, delayed their latest versions in 2025

PepsiCo, in contrast, offers deep detail about its revisions and the thinking that drove them in its comprehensive online reporting hub, updated in August. 

“We wanted to be as transparent as possible, because transparency plus accountability equals trust,” said PepsiCo Chief Sustainability Officer Jim Andrew, during the latest episode of Climate Pioneers, our series featuring innovators and leaders shaping the corporate climate movement. 

“If you wanted to wade through the footnotes and understand the logic, we tried to make that as clear as possible,” he said. “And then we also had a very simple summary, so if you wanted to hit the high points, you could also do that.” 

It takes a system

PepsiCo reviews all sustainability goals comprehensively every four to five years, not just as a reporting exercise but to understand what should be changed. Each commitment was evaluated separately to better understand what was driving or prohibiting progress. The goal: learn and adjust.

“If we haven’t learned anything in four or five years, then shame on us because certainly a lot of things look different,” said Andrew, who reports to PepsiCo’s CEO and meets with his counterparts in the C-suite at least monthly.

The prevailing rationale for many downgrades PepsiCo describes in its disclosures — including the extension of its net-zero commitment by 10 years and its retreat from a 2030 pledge to cut virgin plastic consumption by 20 percent — is the lack of systemic support for those ambitions, according to Andrew. 

“Overall, there’s things that individual companies can do, and there’s a range of aspirations and commitments to doing those things by different types of companies, but there is also a tremendous amount that’s dependent on the systems that we’re all a part of,” he said. 

Because the majority of national emissions reduction commitments are pegged to 2050 or later, it’s difficult for any one multinational corporation to accomplish the same thing more quickly.

“You can’t move a system as big as ours around the world faster than the whole world is moving,” Andrew said. “It’s just unrealistic. So we said 2050 is much better aligned with what the world is doing.” The new targets are also aligned with the goal of keeping global temperatures below 1.5 degrees Celsius, whereas the previous ones were set for a 2 degrees change.

Point of influence: regenerative agriculture

Not all of PepsiCo’s revisions reflect a belief that progress will be slower. The $92 billion company — which gets roughly 60 percent of its revenue from food brands including Lay’s and Quaker Oats — made its targets for sourcing ingredients tougher to achieve by increasing a commitment to buying from farms using regenerative agriculture to 10 million acres by 2030, up from 7 million. As of its latest progress update in August, it had achieved 3.5 million acres.  

The new goal represents well over half of the land required to grow around 50 major crops — notably oats, potatoes and corn — needed for PepsiCo’s products. 

The economic crisis in farming is one reason for this heightened focus, Andrew acknowledged, because regenerative agriculture provides an opportunity for farmers to reframe their value proposition. It also gives PepsiCo a role in that transition.

Just as important for PepsiCo’s confidence in making the shift was the supportive network of corporate partners that it collaborates with to develop initiatives and incentives for the roughly 300,000 farmers in the conglomerate’s agricultural chain, which spans 60 countries.

For example, PepsiCo in September said it is teaming up with another consumer products giant, Unilever, to provide funding and technical support to local farmers in Canada and the U.S.

It’s important to provide farmers financial incentives, technical advice and cultural support to bridge the transition to regenerative agriculture practices, which usually takes three to four years. In many tight-knit U.S. farming communities, regenerative agriculture is still seen as an unorthodox choice that neighbors might question. PepsiCo builds provisions for this support into contracts with farmers that are willing to make the commitment. 

“I think that many farmers know that moving to regenerative practices is better for their farms, better for the soil,” Andrew said.

Methods such as planting cover crops to protect soil erosion and decreasing fertilizer usage lower costs for the same yield and improve resilience. “You end up better off, but you’ve got to get from here to there,” he said. 

Watch the whole Jim Andrew interview. Look for more coverage of this conversation and other Climate Pioneers features by signing up for Trellis Briefing.

The post Inside PepsiCo’s sustainability strategy pivot appeared first on Trellis.