One of the eco.business Fund’s pillar mission is to mitigate climate change and adapt to its impact. Greenhouse gas emissions, and particularly carbon dioxide (CO2), are key drivers of climate change. The recent report published by the Intergovernmental Panel on Climate Change (IPCC) indicates that strong and sustained reductions in CO2 emissions and other greenhouse gases would limit climate change. The report also finds, that unless immediate reductions are achieved, limiting global warming to close to 1.5°C or even 2°C will be beyond reach1. The positive message of the report is that human actions still have the potential to determine the future course of climate.
Algomerados Cotopaxi S.A. (“Cotopaxi”) is one of the fund’s end-borrowers in Ecuador since 2019, first through Banco Pichincha and then through Banco del Pacífico. The company is a national leader in the Ecuadorian forestry industry and is committed to the sustainable plantation, production and selling of wooden products. The company identified the measurement of its carbon footprint as one of the key pillars to ensure efficient and productive processes that manage the impact of the company on its stakeholders. Cotopaxi aims to be carbon neutral certified by 2022 through a certification process carried out by an independent third-party using a methodology that is endorsed by the International Finance Corporation (IFC).
The eco.business Development Facility is accompanying Cotopaxi in the implementation and certification of a carbon neutrality management system, starting with the assessment of carbon stock in the plantations and conservations areas, and the quantification of emissions of scope 1 and 2 (direct emissions and emissions from purchased electricity for own use). Following the deployment of the Management System, the system will be audited internally and externally. The external system audit will be conducted by an accredited party to obtain the carbon neutrality certification and be admitted into the Ecuadorian Zero Carbon program (PECC).
Furthermore, the project has been supported by the Sustainability Academy with a course on the calculation of the carbon footprint.