The American Financial Exchange (AFX), an electronic exchange for direct lending and borrowing for 221 members, has committed to be carbon-neutral, offsetting its emissions on a yearly basis from January 1, 2021.
Climate Vault, a non-profit founded at the University of Chicago, will support the venture by helping to significantly reduce and eliminate CO2 emissions. AFX will then calculate, and reduce or offset all of its scope 1, 2 and 3 emissions.
Alongside offsetting emissions AFX has also collaborated with environmental markets advisors, Evolution Markets to neutralize its historical emissions.
The collaboration has allowed AFX to calculate its carbon footprint from 2015 to 2021, which includes its scope 1 direct greenhouse gas emissions, scope 2 indirect emissions and scope 3 indirect emissions from air travel from the year 2020.
Andrew Ertel, founder, and CEO of Evolution Markets said: “By adopting a rigorous process to measure and ultimately offset the institution’s historic carbon footprint, AFX is setting the industry standard for positive action to address global climate change.
“AFX’s further commitment to calculate and then reduce or offset all its direct and indirect emissions stands as a beacon for financial market operators to follow.”
In the past year, an increasing amount of firms have pledged to become carbon neutral, as well as ploughing investment into renewable projects.
More recently, telecommunications giant Verizon raised $1 billion for green bonds and a pledge to reach carbon neutrality by 2035, while Fifth Third went carbon neutral amid its broader green targets.
Firms are under increased pressure to pledge carbon neutrality as climate change becomes increasingly urgent.
In August, the United Nations issued a code red for climate change, after a study found evidence of “unprecedented” and “irreversible” environmental changes.