Published
July 18, 2024
Author
Block
Published
July 18, 2024
Author
Block
An UNDO tractor spreads biochar, which stores carbon, in a field. UNDO is one of the projects Block is participating in through their work with Watershed.
Corporations have a big part to play in the climate transition. The stakes are high, and Block takes our responsibility seriously. We see a strong connection between sustainability work and the issues of equity, access, and inclusion at the heart of economic empowerment — our uniting purpose. This is why we began working with enterprise sustainability platform Watershed to better understand and address our carbon output.
Watershed takes a data-forward approach to sustainability, using a company’s granular emission measurements to create more accurate progress reports and more effective carbon removal and reduction plans. Each year, we give an update on Block’s work with Watershed in our annual Corporate Social Responsibility (CSR) report. But Watershed’s scope is far bigger than Block. We wanted to dive deeper into Watershed’s purpose as a company and views on economic empowerment through the lens of sustainability. So we talked with Watershed’s Eric Nevalsky, who advises Block’s sustainability audit and climate program, about his views and advice on the evolving corporate sustainability space.
Action shot of WithOneSeed, the first Gold Standard verified carbon forestry program in Timor Leste. Through Watershed, WithOneSeed helps Block meet its carbon removal needs.
Could you introduce yourself?
Hey, I’m Eric Nevalsky. I’m on Watershed’s climate advisor team. My job as a climate advisor is to come in after a company like Block has measured its annual carbon footprint and to basically say, okay, now that you have all this data, what should you do to push your climate program forward?
In your own words, what’s Watershed’s purpose?
We believe the private sector has a major role to play in addressing climate change. As it stands now, meaningful corporate action is lagging behind many of the initial climate commitments that were set. And so Watershed’s purpose is to help accelerate the work of private-sector climate action. And we do that by giving companies the tools they need to actually figure out which part of its value chain is, what we call an emissions hotspot, and then to take action to reduce or remove those emissions.
What do you mean by emissions hotspot?
The majority of a company’s emissions tend to come from its supply chain. We consider that an emissions hotspot.
And so we can say, for example, “Hey, here are your top five suppliers. They actually make up a quarter of your total corporate footprint. So instead of putting resources towards more recycling bins in the offices, which is probably not doing a ton, let’s put that energy towards working with those suppliers to reduce their emissions in your supply chain.”
How does Watershed help companies track emissions?
Companies come to Watershed with normal business data, then we help them get a granular emissions footprint from that data.
…that sounds like a lot of data.
It’s a lot of data. And that's why we really believe in a software-led approach. In the past, emissions measurement has primarily been done in spreadsheets. But for big, complex global companies, you want to get as granular as possible. And you’re dealing with huge, huge data files. Software allows you to get in the weeds and work better over time, whereas a spreadsheet is more of a one-time artifact that is helpful but only really works once a year.
Through Watershed, Block purchases permanent carbon removal from Brilliant Planet. Here’s an aerial view of algae growing in a pilot pond at Brilliant Planet’s site in southern Morocco.
Can you talk about how economic empowerment and sustainability are intertwined?
Economic empowerment and sustainability are often linked to this idea of climate justice: that low-income communities and communities of color are often the most vulnerable to the impacts of climate change. So climate events can exacerbate existing economic inequalities.
There are a few ways that corporate sustainability can help promote climate justice. One is that company initiatives to build climate resilience (like transitioning to clean energy) can help reduce negative climate impacts in local communities while also creating economic opportunities. Think about the jobs needed to construct residential solar power, wind power, and new infrastructure. The transition could create millions of new jobs in new sectors while reducing the actual effects of climate change. If we have policies to ensure equitable access to those jobs, corporate sustainability could be a driver for economic mobility.
One thing that’s very cool is the Virtual Power Purchase Agreement (VPPA) that Block is participating in through their work with Watershed. Block has committed to buying renewable energy certificates from new solar plants that would not have had the funding to be built without their investment. So by committing to the VPPA, Block is directly creating new jobs in the communities where the plants will be built.
What would you say are the stakes for companies right now?
I think the climate transition is going to impact every part of our economy. To achieve a goal like net-zero emissions, we’re going to have to rethink how everything operates. And that comes with a lot of risk and a lot of opportunity. On the risk side, there are a couple of things.
There’s physical risk. Let’s say there’s going to be increased heat waves, which we’re already seeing. Where it’s not just hot outside, it’s reaching 120 degrees Fahrenheit. If those heat waves are occurring in Southeast Asia regularly, how will that impact your supply chain there? Do factories have to shut down for three months a year because it’s too hot to work? What will that mean for your business?
There are also transition risks. How will climate policies coming down the pipeline favor certain businesses and penalize others? How will the shift towards the climate economy make certain technologies more appealing to customers or regulators or businesses, and which technologies will become obsolete? And, of course, there’s reputational risk. How will what companies do on climate impact how customers or regulators perceive them?
Those are all the sticks, but there are also carrots. If you become a more climate-forward company, you become a more appealing target for investment. You also have better employee retention. We see data around that. Employees want to work at a company that they believe aligns with their values. And so showing up and taking action is just good business.
Published
July 18, 2024
Author
Block
An UNDO tractor spreads biochar, which stores carbon, in a field. UNDO is one of the projects Block is participating in through their work with Watershed.
Corporations have a big part to play in the climate transition. The stakes are high, and Block takes our responsibility seriously. We see a strong connection between sustainability work and the issues of equity, access, and inclusion at the heart of economic empowerment — our uniting purpose. This is why we began working with enterprise sustainability platform Watershed to better understand and address our carbon output.
Watershed takes a data-forward approach to sustainability, using a company’s granular emission measurements to create more accurate progress reports and more effective carbon removal and reduction plans. Each year, we give an update on Block’s work with Watershed in our annual Corporate Social Responsibility (CSR) report. But Watershed’s scope is far bigger than Block. We wanted to dive deeper into Watershed’s purpose as a company and views on economic empowerment through the lens of sustainability. So we talked with Watershed’s Eric Nevalsky, who advises Block’s sustainability audit and climate program, about his views and advice on the evolving corporate sustainability space.
Action shot of WithOneSeed, the first Gold Standard verified carbon forestry program in Timor Leste. Through Watershed, WithOneSeed helps Block meet its carbon removal needs.
Could you introduce yourself?
Hey, I’m Eric Nevalsky. I’m on Watershed’s climate advisor team. My job as a climate advisor is to come in after a company like Block has measured its annual carbon footprint and to basically say, okay, now that you have all this data, what should you do to push your climate program forward?
In your own words, what’s Watershed’s purpose?
We believe the private sector has a major role to play in addressing climate change. As it stands now, meaningful corporate action is lagging behind many of the initial climate commitments that were set. And so Watershed’s purpose is to help accelerate the work of private-sector climate action. And we do that by giving companies the tools they need to actually figure out which part of its value chain is, what we call an emissions hotspot, and then to take action to reduce or remove those emissions.
What do you mean by emissions hotspot?
The majority of a company’s emissions tend to come from its supply chain. We consider that an emissions hotspot.
And so we can say, for example, “Hey, here are your top five suppliers. They actually make up a quarter of your total corporate footprint. So instead of putting resources towards more recycling bins in the offices, which is probably not doing a ton, let’s put that energy towards working with those suppliers to reduce their emissions in your supply chain.”
How does Watershed help companies track emissions?
Companies come to Watershed with normal business data, then we help them get a granular emissions footprint from that data.
…that sounds like a lot of data.
It’s a lot of data. And that's why we really believe in a software-led approach. In the past, emissions measurement has primarily been done in spreadsheets. But for big, complex global companies, you want to get as granular as possible. And you’re dealing with huge, huge data files. Software allows you to get in the weeds and work better over time, whereas a spreadsheet is more of a one-time artifact that is helpful but only really works once a year.
Through Watershed, Block purchases permanent carbon removal from Brilliant Planet. Here’s an aerial view of algae growing in a pilot pond at Brilliant Planet’s site in southern Morocco.
Can you talk about how economic empowerment and sustainability are intertwined?
Economic empowerment and sustainability are often linked to this idea of climate justice: that low-income communities and communities of color are often the most vulnerable to the impacts of climate change. So climate events can exacerbate existing economic inequalities.
There are a few ways that corporate sustainability can help promote climate justice. One is that company initiatives to build climate resilience (like transitioning to clean energy) can help reduce negative climate impacts in local communities while also creating economic opportunities. Think about the jobs needed to construct residential solar power, wind power, and new infrastructure. The transition could create millions of new jobs in new sectors while reducing the actual effects of climate change. If we have policies to ensure equitable access to those jobs, corporate sustainability could be a driver for economic mobility.
One thing that’s very cool is the Virtual Power Purchase Agreement (VPPA) that Block is participating in through their work with Watershed. Block has committed to buying renewable energy certificates from new solar plants that would not have had the funding to be built without their investment. So by committing to the VPPA, Block is directly creating new jobs in the communities where the plants will be built.
What would you say are the stakes for companies right now?
I think the climate transition is going to impact every part of our economy. To achieve a goal like net-zero emissions, we’re going to have to rethink how everything operates. And that comes with a lot of risk and a lot of opportunity. On the risk side, there are a couple of things.
There’s physical risk. Let’s say there’s going to be increased heat waves, which we’re already seeing. Where it’s not just hot outside, it’s reaching 120 degrees Fahrenheit. If those heat waves are occurring in Southeast Asia regularly, how will that impact your supply chain there? Do factories have to shut down for three months a year because it’s too hot to work? What will that mean for your business?
There are also transition risks. How will climate policies coming down the pipeline favor certain businesses and penalize others? How will the shift towards the climate economy make certain technologies more appealing to customers or regulators or businesses, and which technologies will become obsolete? And, of course, there’s reputational risk. How will what companies do on climate impact how customers or regulators perceive them?
Those are all the sticks, but there are also carrots. If you become a more climate-forward company, you become a more appealing target for investment. You also have better employee retention. We see data around that. Employees want to work at a company that they believe aligns with their values. And so showing up and taking action is just good business.