In episode 34 of the Disruptors for Good podcast, I speak with Austin Whitman, the CEO of Climate Neutral about combating climate change by putting a price on carbon emissions.
About Austin
Austin has spent the past 20 years of his career working on early stage environmental markets and technologies, with a dose of policy work along the way. His first venture into carbon offsetting began in grad school with a program he started to sell carbon offsets to his classmates.
He firmly believes that solving the climate crisis demands participation from businesses. Austin has a joint MBA/MEM from Yale and a BA from Dartmouth. Now, as CEO of Climate Neutral, Austin is empowered by enlisting brands in the fight against climate change by showing them that paying for carbon pollution is cheaper and easier than they think.
About Climate Neutral
Climate Neutral is an independent non-profit organization working to accelerate the transition to a low-carbon world by putting a price on carbon emissions.
The organization is enlisting brands in the fight against climate change by showing them that measuring and paying for their carbon emissions is cheaper and easier than they think.
Interview Transcript
Grant: Hey, what’s up everybody? This is Grant from Causeartist. Today, we’re diving into the world of carbon emissions with Austin Whitman, the CEO of Climate Neutral.
Austin’s company is making it easier for brands and companies to combat their carbon emissions, and our conversation covers the basics of carbon emissions, climate change, and how businesses can play a crucial role in addressing these issues. Austin has spent over 20 years working in environmental markets and technologies and believes that businesses have a unique opportunity to make a significant impact on climate change.
I hope you enjoy this chemistry lesson—one that even helped me better understand these complex topics. As always, if you have any questions, feel free to email me at grant@causeartist.com. Enjoy the conversation!
02:57
Grant: Let’s start with your journey. How did you end up as CEO of Climate Neutral? I heard it all started with selling carbon offsets to your classmates at Yale.
Austin: Yeah, this goes back to 2005 or 2006 when I was in business school and also part of a joint degree programme at the forestry school at Yale. There were about 12 of us in the programme, and we were kind of the “crunchy capitalists” at the business school and the “capitalist crunchies” at the forestry school.
People started talking about carbon and what they could do about it, which is similar to what we’re trying to get businesses to do now with Climate Neutral. Back then, we were flying to different countries for study abroad trips, and we realized that these trips had a carbon impact.
So we started selling carbon offsets to our classmates to cover the carbon emissions from their flights. It was a way to test the responsiveness of people to this idea of addressing their carbon footprint, and it worked pretty well. We even got the school to contribute since they were the ones organizing the trips.
05:35
Grant: For those who might not be familiar, can you explain what carbon emissions are and why they’re important?
Austin: Absolutely. Carbon is a naturally occurring element—C on the periodic table. It’s in everything we touch, see, and use. When you burn fossil fuels like natural gas, fuel oil, or gasoline, carbon dioxide (CO2) is released into the atmosphere.
Carbon emissions refer to this release of CO2, which is a greenhouse gas. When we talk about carbon emissions, we’re really talking about CO2 emissions.
These emissions trap heat in the Earth’s atmosphere, which leads to global warming and climate change. Every individual in the U.S. is responsible for about 25 tonnes of CO2 emissions each year. To give you a visual, a tonne of CO2 would fill the Washington Monument—so imagine 25 Washington Monuments of CO2 per person, per year.
09:35
Grant: So these carbon emissions trap heat and cause climate change, which affects different regions in different ways, right?
Austin: Exactly. Carbon dioxide is about three-fifths of the problem. The other two-fifths come from other greenhouse gases, which are even more powerful in trapping heat. The effect of these gases is like putting a heavy winter blanket over the Earth—it traps heat and warms the planet.
Climate change affects regions differently. Poorer regions, particularly those near the equator, are hit hardest because they have fewer resources to adapt to these changes. Richer countries, like the U.S., have more money to adapt, but poorer countries suffer more because they can’t cope with the changes as easily.
12:42
Grant: After Yale, how did your path lead to becoming CEO of Climate Neutral?
Austin: After grad school, I worked on investing in renewable energy and carbon markets. This was around the time when there was a lot of interest in these areas, and it seemed like the world was starting to take climate change seriously. I spent a few years advising institutional investors and working on carbon asset management.
However, the financial crisis in 2008 shifted priorities, and climate change took a backseat. I then moved into consulting, focusing on renewable energy and energy efficiency. Eventually, I joined a clean tech company working on energy efficiency, which was very successful in driving environmental progress.
This experience led me to where I am now, working on making carbon neutrality more accessible for businesses through Climate Neutral.
16:24
Grant: Can you explain what Climate Neutral does and how the certification process works?
Austin: Climate Neutral helps companies estimate their carbon footprint and take steps to reduce and offset it. We allow companies to estimate their emissions because if we required them to measure every gramme of carbon, it would take years for them to get on board.
We provide an estimation process that’s statistically valid, and then we ask companies to offset their previous year’s carbon emissions by purchasing carbon offsets.
These offsets support projects that reduce or sequester carbon elsewhere, like planting trees, building wind turbines, or capping landfills. The company also submits a plan to reduce future emissions to get certified. The idea is to create an economic incentive for companies to address their carbon footprint, even if there isn’t a current policy requiring them to do so.
21:07
Grant: What does the cost look like for a company to become Climate Neutral certified?
Austin: We tell businesses that they can expect to spend about 0.4% of their revenues on offsetting their carbon footprint. It’s not a huge cost, especially when you consider the potential benefits, like attracting employees who care about sustainability and differentiating themselves in the marketplace.
The cost might increase slightly in the future, but it will still be a small fraction of revenues. Our hope is that companies see this as a necessary step in doing the right thing for the environment and their business.
27:39
Grant: You mentioned carbon offsets like planting trees or building wind farms. Are there specific actions that businesses can take that are more effective than others?
Austin: The concept of quality comes up a lot when talking about carbon offsets. Quality can mean different things depending on what a company values. For example, planting trees not only sequesters carbon but also improves ecosystems by reducing erosion and providing habitats for animals.
Some projects, like switching out charcoal-burning cookstoves for cleaner alternatives, have additional benefits like improving human health. Companies often choose projects that align with their brand or have a positive impact in regions where they operate. The idea is to build a portfolio of offset projects that not only reduce carbon but also create other positive outcomes.
32:43
Grant: What about zero waste? Is that achievable for most companies, or is it something that’s way down the line?
Austin: Zero waste is typically about optimizing the manufacturing process to reduce waste. For some products, it’s conceivable to achieve zero waste, but for others, especially in complex supply chains, it’s more challenging. However, it’s important to assess the relative impact of waste on the environment.
We’re not running out of landfill space, but we do have a significant climate problem. So, while reducing waste is important, it’s also crucial to focus on what will have the most impact on climate change, like reducing carbon emissions.
42:11
Grant: What’s your take on the future of waste management, especially with China no longer accepting the world’s trash?
Austin: Most trash in the U.S. isn’t burned; it either decomposes in landfills or just sits there if it’s plastic. Waste management is more of an economic issue than a climate one.
The real problem is that municipalities rely on revenues from selling recycled materials, and when China stopped accepting contaminated waste streams, it became harder for cities to manage recycling economically. However, from a climate perspective, the bigger issue is what happens when we burn waste, as it releases carbon back into the atmosphere.
While waste management is a logistical challenge, it’s not as critical as addressing the climate crisis.
51:01
Grant: What about the impact of waste on oceans? That seems like a significant issue, especially with plastics.
Austin: Ocean health is a huge concern, especially since much of the plastic waste that ends up in the ocean comes from land, either washing down storm drains or being directly dumped in regions without proper waste management. There are some inspiring efforts to address ocean health, like coral reef conservation and carbon offset projects that focus on the ocean.
These initiatives not only restore the health of our oceans but also help sequester carbon, making them a win-win for the environment. The interconnectedness of ecosystems means that improving ocean health can have far-reaching positive effects.
53:15
Grant: Thanks so much, Austin. This has been an incredibly educational conversation for me, and I’m sure for everyone listening as well. I appreciate what you and your team at Climate Neutral are doing. Taking that first step towards sustainability—whether you’re a consumer or a business—is so important. Best of luck with all your efforts!
Austin: Thanks, Grant. I’ve really enjoyed our conversation. You had some great questions, and I appreciate the opportunity to share what we’re doing at Climate Neutral. It’s been a pleasure, and I’m excited to see how we can all work together to address these critical issues.
