Model of Carbon+Alt+Delete and Scone helps companies reduce climate change impact by 20%

ABN AMRO Private Banking Belgium and Vlerick Business School have maintained a close collaboration for years. The partners are now backing a new initiative. Together with VLAIO, they are supporting the development of an innovative risk assessment tool for small and medium-sized enterprises. 

Initially, they will focus on the food and beverage industry, but the model will be more widely applicable to help other companies quantify and calculate into euros the most relevant climate risks that could negatively impact their growth and operations. Based on the output of this model, companies can then take measures to reduce the financial impact of these risks by 20% over a five-year period. Belgian start-ups Carbon+Alt+Delete and Scone are responsible for developing the model, which is subsidised by the Flemish Agency for Innovation and Entrepreneurship (VLAIO) and can further rely on funding and expertise from ABN AMRO Private Banking Belgium. Vlerick Business School comes on board as research partner for statistical value-at-risk models.

Carbon+Alt+Delete broke through as a Mechelen-based start-up through the social entrepreneurship acceleration programme organised by ABN AMRO Private Banking Belgium together with the network of social entrepreneurs Ashoka and organisational consulting firm Accenture. The start-up offers carbon accounting software and consultancy tailored to SMEs. The software platform aggregates relevant data from organisations and uses it to calculate CO2 emissions. That data is compiled into reports, enabling auditability and compliance of carbon accounting processes. The changing regulations, frameworks and protocols related to CO2 emissions are constantly updated in the process. 

"We strongly believe in the statement 'carbon accounting is the new financial accounting'. Companies are going to have to map their carbon footprint just as they map their financial results, otherwise they are not going to be able to remain competitive in a carbon-neutral society," says Kenneth Van den Bergh, CEO of Carbon+Alt+Delete.

Antwerp-based Scone activates and encourages companies to take concrete and personalised measures to reduce emissions. To do so, Scone applies principles of behavioural science and artificial intelligence, linking this with sensor data and digital energy meters. This enables banks and insurers, among others, to encourage their customers to make homes and mobility more sustainable. This leads to better control of emissions in the value chain and financial risks. 

"New European regulations around emissions reporting and climate 'stress tests' make managing financial risks a central challenge for banks and their customers. SMEs are the engine of our economy. Making climate risks and costs manageable is vital to them for a successful climate transition," says Jan-Willem Rombouts, CEO of Scone. 

The project has an expected lead time of 18 months. Both Carbon+Alt+Delete and Scone already provide solutions for measuring and understanding the impact of greenhouse gases. This project adds the dimension of risk management. Combined, this will provide even more concrete insights for SMEs.