Colder summers, warmer winters and unregulated temperatures: the climate change go beyond just affecting the climate and weather forecast. The negative impacts of climate crisis harm forests, the air we breathe, agriculture and our quality of life. How can we combat climate change? Where to start? One possible mechanism is Impact Investment.
In this blog post, you will see:
- Why fight climate change
- How Impact Investing can be an ally in this fight
- What is Empathic Capital?
- Impact businesses that combat climate change
- How you and your institution can combat climate change
Why fight climate change
We know that the climate change have advanced rapidly. In the face of this global emergency, it is important to explore innovative and integrated approaches to achieve the goals set by Paris Agreement. The Intergovernmental Panel on Climate Change (IPCC) has warned that a 7.6% annual reduction in global greenhouse gas (GHG) emissions is crucial to limiting temperature rise to 1.5°C by 2030.
How Impact Investing can be an ally in this fight
The combination of solutions High Tech and Low Tech emerge as a strategy to address this global challenge. Wildfires are at the center of the climate crisis and pose a growing threat. Today, 20% of CO2 emissions come from wildfires, accelerating the global warming, destroying biodiversity and putting people's lives at risk.
In this context, the Impact Investment can play a fundamental role in generating positive change. This modality goes beyond bringing financial return for investors: it is a way of access to capital for businesses and initiatives that operate in production chains, ecosystems and biomes that generate a positive socio-environmental impact in the country.
What is Empathic Capital?
The Empathic Capital is the premise that guides the actions of Sitawi as Impact Investment. To reconcile financial logic with positive transformations in society — often anchored in projects that require long terms until they are able to work in market logic —, we need various types of capital: the philanthropic, the patient, among others, combined in the logic we call Blended Finance — or hybrid finance.
All of them, when united and centered on the needs and limitations of businesses with positive socio-environmental impact, can generate a more sustainable and inclusive economic future. This is the transformation made possible by Empathic Capital. He invites the investor to reflect on the role of capital and the possibility of its use to generate distributed wealth in a sustainable manner, thinking about the entrepreneur and his ability to generate value and positive returns for the entire community in which he is inserted and for the environment.
Impact businesses that combat climate change
Through his Crowdlending Platform for Positive Impact, a Sitawi enables businesses that work towards the positive socio-environmental impact capture investments more favorable rates than those practiced by traditional markets — and which, normally, do not have the expertise and context necessary to evaluate the risk x return x impact of these businesses. To date, 40 organizations have already raised loans via sitawi platform. Meet two who work to combat climate change.
- THE OneDegreeandHalf UmGraueMeio developed the Pantera Platform, which, using computer vision and high-resolution cameras, automatically identifies fire outbreaks within a radius of more than 20 km. By monitoring 17.5 million hectares, it contributes to reducing CO2 emissions and has a significant positive impact on combating climate change.
- On the other hand, the Belterra adopts an approach Low Tech — but no less innovative for that —, through Agroforestry Systems (SAFs). Thus, they generate value for producers and society and aim to restore ecosystems in a sustainable and productive way. With approximately 2,830 hectares under management, they provide better control of temperature, relative humidity and soil moisture. These changes in the regional microclimate have a direct impact on mitigating climate change.
How your institution can combat climate change
The combination of more digital technology solutions and more social approaches is a necessity to combat climate change and the complexities of this crisis. These examples highlight the ability of Crowdlending Platform for Positive Impact, together with the approach of Empathic Capital, to meet their various financing needs. And your institution can be part of this positive transformation. Through the Blended Finance, your company, foundation or institute can support the implementation of investment rounds focused on businesses that work to protect the climate and ecosystems, for example.
Want to take the next step towards fighting climate change? Talk to our team and find out how.
And it doesn't stop there: you, an individual interested in earning extra income while achieving a purpose, can invest from R$ 10 in businesses that work to protect the climate and generate a positive impact on the world. We will soon have an opportunity open. Get to know the platform and pre-register to get started!
