Fjordkraft, the second largest electricity retailer in Norway, is using its purchasing power to inspire all its suppliers to be climate neutral by 2019.
Fjordkraft has been climate neutral since 2007, but decided in June 2016 it could do more, launching its Klimanjaro project to inspire its suppliers to make bold commitments to climate action: to measure greenhouse gas (GHG) emissions, reduce what they can, and offset the rest. The name, Klimanjaro combines klima, the Norwegian word for climate, with the name of Africa’s highest peak, Mount Kilimanjaro. Mount Kilimanjaro is difficult to climb, but fully feasible if we summit together.
Key facts
All Fjordkraft’s 138 service providers and suppliers have signed letters committing to become climate neutral by 2019;
To date, the commitments from suppliers in total are more than 100-times greater than emissions from Fjordkraft’s own operations;
GHG emissions from more than 32,000 employees will be reduced and offset by 2019.
Credit: Aleksander Svanoe
The problem
Climate change is one of the greatest challenges of our time, and the negative impacts on nature, local communities and businesses are accelerating. Power utilities, even those that trade in renewable power, can have significant carbon footprints, especially when the entire supply chain is considered. This carbon footprint can grow, right along with rising demand for electricity.
Fjordkraft, as an electricity retailer, has a commitment not only to its customers, but to the people who are impacted by its suppliers. Hence its efforts to inspire climate action from all the companies with which it does business.
The solution
When businesses take responsibility for their carbon footprints, and then collaborate to neutralize emissions along a sector’s entire value chain, climate action is raised to a higher, truly meaningful level.
Fjordkraft has 103 service providers and suppliers that have pledged to be climate neutral by January 2019. As pledgees to the UN Climate Neutral Now initiative, the companies will:
Measure their climate footprint
Reduce emissions as much as possible, and
Offset what cannot be reduced.
Helping the planet
Credit: Aleksander Svanoe
On top of becoming climate neutral, Fjordkraft is pointing the way for the companies with which it works, implementing sustainable activities to reduce GHG emissions and showing its service providers and suppliers how it can be done. Fjordkraft uses technology to improve communication efficiency between its locations and reduce travel to meetings, encourages carpooling, bicycling, and use of public transport, and promotes recycling and use of renewable energy.
Fjordkraft believes that all companies have a social responsibility beyond maximizing shareholder returns, and is actively encouraging its service providers, suppliers and others to become climate neutral. The company is expecting a healthy return from its efforts – a green bottom line that is both financially profitable and good for the climate.
Helping people
As part of its Klimanjaro project, the company has released climate accounting software that gives its customers a user-friendly overview of their emissions. It is designed to help customers gain control over their emissions, make businesses aware of their climate footprint, and inform decision makers on where they can best make an effort. Fjordkraft advocates a climate neutral supply chain in meetings with competitors, environmental organizations and other business associates.
Spillover effect
Fjordkraft believes its project can be replicated by any company in any industry anywhere in the world. To make it simple, Fjordkraft has produced a step-by-step guide on how to achieve climate neutrality. The utility has also produced a guide on how to engage service providers and suppliers in programs to become climate neutral.
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