Purpose of Climate Dividends

Today, companies are primarily evaluated on their ability to reduce negative climate impacts (i.e reduce their carbon footprint), while their efforts to improve their positive climate contributions like avoiding/removing GHG emissions are seldom acknowledged.

This is largely because avoided or removed emissions are not well understood, and the calculations behind lack standardization and transparency.

As a result, companies that achieve positive climate impact by avoiding or removing greenhouse gases often hesitate to communicate these accomplishments, fearing accusations of greenwashing and struggling to gain formal recognition.

That is why Climate Dividends were created. A Climate Dividend is an extra-financial indicator corresponding to the positive climate contribution of a company. Each year, a company that produces a climate solution can assess its avoided/removed emissions, convert them into Climate Dividends, and distribute them to its shareholders.

It is the mirror of a financial dividend for climate !