XTX Makes ESG Statement with Employee Carbon Removal Programme
Posted by Colin Lambert. Last updated: April 18, 2022
XTX Markets has released a series of climate pledges, within which it claims to be one of the first companies to introduce a carbon removal programme for employees. The firm is making four pledges, to avoid energy use from fossil fuels; remove all of its CO2 emissions; the removal of 16 tonnes of CO2 per employee; and support to employees who wish to reduce their carbon footprint.
The firm says to meet the International Plant Protection Convention’s (IPPC) 1.5C scenario, the emerging consensus is that carbon capture and storage (CCS) needs to increase from around 40 million tonnes of CO2 in 2020 to 1 billion tonnes in 2030, then 10 billion tonnes in 2050.
The market for carbon removal needs to grow 25 times by 2030 and XTX says it will support this goal by purchasing CCS credits that help to accelerate the market and bring down the cost curve. It adds it is focusing on projects that have scientifically valid methods to capture atmospheric CO2 and store it durably for thousands of years.
XTX has purchased its first tranche of carbon removal credits for its 2020 emissions, equivalent to 3,265 tonnes of CO2. It plans to purchase further tranches each year, making it one of the first trading firms to remove its CO2 emissions and, as far as it knows, the first major firm in any sector to remove household carbon emissions on behalf of employees.
To help the firm avoid fossil fuel-derived energy use it says its UK office has switched to renewable energy and that it will incrementally work to improve on its research cluster’s 3.8 megawatts of renewable power (via geothermal energy). It also pledges to remove the CO2 emitted for Scope 1, 2 and 3 as a result of its own assets, purchased energy use and indirect emissions.
The pledge to remove 16 tonnes of CO2 per employee is more than the average UK household emitted in 2020, the firm says, adding it will roll out initiatives for employees including electric vehicle lease schemes and advice on buying personal carbon credits.
“We are pleased to announce our climate pledges, including our unique approach to employee carbon removal,” says Alex Gerko, founder and co-CEO at XTX Markets. “XTX is again leading the way in the algo trading community and we look forward to others joining us in implementing processes to help alleviate climate issues.’’