Climate Action Archives - Green Initiative - For a Climate and Nature Positive Planet

A person in an agricultural field holds a smartphone displaying a data dashboard with the text "Digital MRV - Real-Time", with a solar panel array in the background.

Digital MRV Platforms: How Technology Scales Climate Finance

The global SME financing gap stands at $5.5 trillion, partly due to the excessive cost of verifying impact for small-scale projects and for small-scale projects seeking Climate Positive Certification. Traditional MRV is “prohibitively expensive” for smallholder projects because manual registration and field visits take between 12 and 24 months, a timeline that is incompatible with the fast-paced capital needs of small businesses. Digital platforms and middleware are now enabling financial institutions to reach these borrowers profitably by aggregating risk and dramatically reducing transaction costs. Automation and Aggregation: Solving the “SME Paradox” Traditional MRV is prohibitively expensive for smallholder projects because manual registration and field visits take 12 to 24 months. Digital platforms are transforming this through two core mechanisms: Criteria for Evaluating Digital MRV Platforms When selecting a platform, financial institutions must prioritize transparency, accuracy, and cost-efficiency. The 2025 Technical Guidance from the World Bank identifies four high-priority workflows for digitization: measurement and data storage, emission reduction (ER) calculations, third-party verification, and reporting. Feature-by-Feature Analysis: Digital MRV Solutions Feature Traditional MRV Digital MRV (dMRV) Green Initiative (GREENIA) Verification Cycle 12–24 Months 1–3 Months Real-Time Monitoring Data Ingestion Manual Entry / PDF API-based / Automated 100+ Built-in Integrations Audit Requirement Physical Site Visits Remote / Internet Audits Satellite + Ground Verification Integrity Layer High Human Error Risk Tamper-proof Logs AI-driven Anomaly Detection The GREENIA Advantage Green Initiative’s GREENIA platform serves as a novel artificial intelligence (AI)-powered framework for optimizing climate performance. A key innovation of GREENIA is its ability to provide natural language explanations (NLEs), enabling transparent and interpretable insights for both technical and non-technical stakeholders. Through the platform, businesses can monitor key climate performance indicators, execute real-time reports, and compare performance over time. Pros and Cons of Digital Integration Pros Limitations Use Case Recommendations Conclusion Digital MRV is the backbone of credible carbon projects and performance-linked lending. Platforms like GREENIA provide the transparency and rigor needed to align with global climate goals while making SME finance a profitable business decision. This article was written by Virna Chávez from the Green Initiative Team. Frequently Asked Questions References & Further Reading Related Reading

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The Absolute Contraction Method: 4.2% Annual Reduction Explained

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Financial institutions increasingly require rigorous evidence that a borrower’s climate goals align with the global effort to limit warming to 1.5°C. Among various target-setting approaches, the Absolute Contraction Method stands out as the most direct and transparent standard for emissions reduction. This methodology requires companies to reduce their total greenhouse gas emissions by a fixed annual percentage, regardless of business growth or initial performance levels. For lenders, this method provides a universal benchmark to evaluate climate ambition. It eliminates the complexities of intensity-based targets, which can sometimes mask absolute emissions increases during periods of rapid corporate expansion. By adopting the absolute contraction approach, organizations demonstrate a commitment to absolute decarbonization that satisfies the highest levels of investor and regulatory scrutiny. The Mathematics of 1.5°C Alignment The core of the Absolute Contraction Method is the 4.2% annual linear reduction requirement. This specific figure is derived from the latest climate science provided by the Intergovernmental Panel on Climate Change (IPCC). To maintain a high probability of staying within the remaining global carbon budget, absolute emissions must decline significantly every year. How the Calculation Works The reduction is calculated based on the base year emissions. For example, if a company emits 10,000 tons of CO2 in its base year, it must commit to reducing that total by at least 420 tons every year until the target year is reached. Why Financial Institutions Prefer Absolute Contraction Lenders and asset managers favor this methodology because it simplifies the due diligence process. It offers several distinct advantages over other target-setting models: Implementation Steps for Borrowers To successfully implement the Absolute Contraction Method, organizations should follow a structured technical pathway. 1. Select a Representative Base Year The base year serves as the anchor for all future calculations. It must be a year with verifiable data that represents standard operating conditions. Organizations should avoid using years with significant anomalies, such as the height of the COVID-19 pandemic, unless those years truly reflect the new business baseline. 2. Verify the GHG Inventory Before applying the 4.2% rule, the initial inventory must be accurate. Financial institutions typically require third-party verification to ensure that Scope 1 and 2 data is complete and follows international standards like the GHG Protocol. 3. Calculate the Target Pathway Determine the total reduction required by the target year (e.g., 2030). {Total Reduction} = {Base Year Emissions} * 4.2% * {Number of Years} This simple formula provides the absolute limit for emissions in any given year of the financing term. 4. Integrate into Capital Expenditure (CapEx) Planning Achieving a 4.2% annual reduction often requires consistent investment in technology. Borrowers should align their target with this mathematical requirement to ensure that efficiency projects deliver the necessary volume of carbon savings. 5. Annual Monitoring and Disclosure Transparency is a core component of climate action. Borrowers must report their progress annually to their lenders. If a milestone is missed, the organization must explain the variance and outline corrective actions to return to the pathway. Addressing Industry Challenges While the 4.2% rule is a universal benchmark, certain industries face unique implementation hurdles. Conclusion The Absolute Contraction Method provides the clarity and rigor needed to turn climate pledges into measurable financial performance. By adhering to the 4.2% annual reduction standard, businesses align themselves with the global transition to a 1.5°C world. For financial institutions, this methodology is the most reliable tool for verifying climate ambition and ensuring that capital is directed toward genuine decarbonization. Does your climate target meet the 4.2% test? Contact us to run our Absolute Contraction Calculator to see if your current reduction plan aligns with the 1.5°C pathway and qualifies for premium climate finance. This article was written by Matheus Mendes from the Green Initiative Team. Frequently Asked Questions Related Reading

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Modern luxury hotel lobby featuring energy-efficient LED lighting and a smart thermostat interface on a concrete pillar.

Hotel Lighting and HVAC Optimization: Quick Wins for Energy Reduction

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Energy consumption represents one of the most significant operational costs for hotel owners and managers. Within a typical property, lighting and HVAC (Heating, Ventilation, and Air Conditioning) systems account for the vast majority of electricity use. Implementing targeted optimizations in these two areas provides immediate financial relief and serves as a foundational step toward broader decarbonization. This guide focuses on high-impact “quick wins” that deliver measurable results with minimal operational disruption. Implementing these quick wins is the first phase of a larger Complete Hotel Energy Transition Roadmap. The Financial Case for Rapid Energy Optimization Rising energy prices and increasing guest expectations for sustainable operations make efficiency a business imperative. Traditional lighting and unoptimized climate control systems waste significant resources through heating or cooling unoccupied spaces and using outdated technology. By focusing on lighting and HVAC, hotel operators can often see energy savings of 20% to 40% in these specific systems. These savings directly improve the property’s Net Operating Income (NOI) and increase overall asset value. These efficiency measures align with the broader Net Zero Roadmap for Travel & Tourism, providing a structured path toward total operational sustainability. Lighting Optimization: Illumination with Efficiency Lighting is often the most accessible area for rapid energy reduction. The transition to modern technology goes beyond simply changing bulbs; it involves intelligent control of the hotel’s environment. LED Retrofitting Replacing all incandescent, halogen, and fluorescent lamps with high-efficiency LED technology is the single most effective lighting intervention. Smart Controls and Automation Energy is frequently wasted in “back-of-house” areas and guest corridors that remain fully lit while empty. HVAC Optimization: Precision Climate Control HVAC systems are typically the largest energy consumers in any accommodation facility. Because these systems are complex, many hotels operate them inefficiently by default. Smart Thermostats and Occupancy Integration Heating or cooling a vacant guest room is a primary source of energy waste. Preventative Maintenance as an Efficiency Strategy A poorly maintained HVAC system can consume up to 30% more energy to provide the same level of comfort. Measuring Success and ROI The success of these “quick wins” is measured through utility bill reduction and improved equipment lifespans. Operators should establish a baseline of energy use per occupied room to track the specific impact of lighting and HVAC upgrades. These metrics are essential for demonstrating the value of efficiency projects to owners and investors. The potential for impact is significant; for instance, the Grande Hotel Sesc Itaparica efficiency results showed a 41.48% reduction in emissions intensity through strategic energy decisions. Ready to identify the specific savings available at your property? Book a Hotel Energy Efficiency Assessment with our technical team today. This article was written by Musye Lucen from the Green Initiative Team. Frequently Asked Questions: Hotel Energy Optimization Related Reading

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A modern eco-friendly hotel with rooftop solar panels, vertical green walls, and an electric vehicle charging station at sunset, illustrating the hospitality energy transition.A modern eco-friendly hotel with rooftop solar panels, vertical green walls, and an electric vehicle charging station at sunset, illustrating the hospitality energy transition.

Hotel Energy Transition: The Complete Decarbonization Roadmap for Accommodation Providers

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The hospitality industry stands at a defining crossroads where economic growth must reconcile with the preservation of the ecosystems that sustain it. For hotels and accommodation providers, the energy transition represents the most significant opportunity to reduce operational costs while responding to a global demand for transparency and positive climate impacts. This roadmap provides a comprehensive strategic framework to transition from fossil-fuel dependency to climate-positive operations, utilizing the specialized guidelines established for the tourism sector. The Strategic Imperative for Hotel Decarbonization Decarbonizing the tourism sector is not merely a reputational exercise; it is a central dimension of modern industrial competitiveness. Accommodation providers face unique vulnerabilities to climate change, including extreme weather events that can damage infrastructure and disrupt service delivery. Economic Advantages and Risk Mitigation Transitioning to low-carbon models allows hotels to: Market Positioning and Guest Expectations Modern travelers increasingly prefer “climatically intelligent” options that reflect responsible practices. Demonstrating a verified commitment to action—such as through Carbon Neutral or Climate Positive certifications—provides a significant comparative advantage in international markets. Phase 1: Establishing the Carbon Baseline A credible energy transition begins with data. You must establish a rigorous Line Base of Emissions to quantify the impact of your operations. The Technical Audit Process Following international standards like ISO 14064-1 and the GHG Protocol, hotels must categorize emissions into three scopes: Measuring Methodology Quantification combines activity data (e.g., kWh consumed or liters of fuel) with emission factors—coefficients that estimate the total gases emitted per unit of activity. These calculations must include all primary greenhouse gases, primarily CO2, CH4, and N2O, expressed as CO2 equivalent (tCO2eq) for standardization. Phase 2: The Efficiency-First Framework Efficiency is the most cost-effective way to begin the transition. In the hospitality sector, the Accommodation category is a primary driver of emissions, largely due to electricity and heating requirements. Key immediate actions include optimizing HVAC systems and upgrading to LED lighting with motion sensors to achieve rapid energy reduction. HVAC and Building Optimization Heating, ventilation, and air conditioning systems are high-consumption areas. Phase 3: Implementing Circularity in Energy and Materials The energy transition is more effective when integrated with Circular Economy principles. Circularity moves away from the “extract-produce-discard” linear model to create resilient, closed-loop systems. The 10R Strategy for Hotels Hotels can apply the 10R Framework to minimize resource pressure: Case Study: Circularity in Peru Machu Picchu became a global reference by implementing an integrated circular architecture. Key interventions included: Phase 4: Electrification and Renewable Energy Once efficiency is maximized, the remaining load should transition to clean energy sources. Phasing Out Fossil Fuels Direct emissions can be lowered by switching from carbon-intensive cooking fuels to cleaner alternatives like natural gas or, ideally, full electrification. While electrification often produces the greatest net reduction, the local grid’s carbon content must be considered. Renewable Integration Phase 5: Monitoring, Reporting, and Verification (MRV) The transition is a continuous process of improvement. Reporting and diffusion of good practices generate the true value of climate investments. Principles of Reliable Reporting To ensure transparency and access to green finance, hotel reports must follow these principles: Maturity Levels Hotels can track their progress using the Climate Maturity Level (NM) framework: This article was written by Musye Lucen from the Green Initiative Team. Hotel Energy Transition FAQ Related Reading

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Three diverse financial analysts in a modern corporate boardroom reviewing TCFD, GRI, and PCAF climate disclosure reports and data charts on a wooden table.

Reporting Frameworks: TCFD CDP and GRI for Financial Decision-Making

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For investors and lenders, the quality of a borrower’s climate disclosure is the primary window into their transition readiness. However, the proliferation of global frameworks has created an “alphabet soup” that often leads to ESG fatigue and asymmetric information risks. Understanding the technical nuances between these frameworks is critical for evaluating whether a borrower is genuinely mitigating risk or merely engaging in tick-box compliance. Impact versus Financial Materiality in Global Standards The reporting landscape is fundamentally divided by the concept of materiality. Dual Materiality (GRI) The Global Reporting Initiative (GRI) employs the principle of dual materiality. This approach reveals how a company impacts the environment and society (inside-out) and how environmental shifts impact the company (outside-in). It serves as the gold standard for multi-stakeholder transparency while remaining interoperable with financial standards. Financial Materiality (TCFD & ISSB) The Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB) focus on financial materiality. These frameworks disclose information that is useful to investors in making resource allocation decisions. IFRS S2 fully incorporates the TCFD’s four-pillar architecture, which includes Governance, Strategy, Risk Management, and Metrics/Targets, creating a global baseline that connects climate performance directly to enterprise value. The PCAF Data Quality Scoring System The Partnership for Carbon Accounting Financials (PCAF) is specifically designed for the financial industry to quantify financed emissions (Scope 3, Category 15). The heart of the PCAF methodology is a five-tier scoring system that communicates the confidence level of emissions data. Score 1 represents the highest quality, involving verified direct emissions data reported by the investee. Score 5, the lowest, relies on economic estimations based on broad spend data or sector averages. The 2025 PCAF updates have expanded this scope to include methodologies for “Use of Proceeds” structures and “sub-sovereign debt,” allowing banks to report on regional and municipal government bonds with greater precision. PCAF Score Data Quality Source Description Reliability for Finance 1 Highest Verified, direct emissions from investee Primary choice for SLLs 2 High Unverified, direct emissions from investee Acceptable with covenants 3 Moderate Calculated from company-specific activity data Requires engagement 4 Low Proxy data / Sector-specific averages Risk of under-provisioning 5 Lowest Economic / Spend-based estimations High uncertainty Investors and lenders should look for “connected information”—the explicit linkage between a borrower’s disclosed climate risks and their financial statement line items. Disclosures that lack board oversight details (currently only disclosed by 25% of firms) or fail to use forward-looking climate scenario analysis should be flagged as high-risk during the due diligence process. The 2025 PCAF updates have expanded this standard to cover 10 asset classes, including Use of Proceeds structures and sub-sovereign debt, allowing banks to report on regional and municipal government bonds with greater precision. Strategic Pro Tips for Evaluating Disclosure Quality To move beyond optics and ensure disclosures deliver genuine value, lenders should look for: Conclusion Standardized climate disclosure is the foundation of efficient capital allocation. By comparing frameworks and applying rigorous data quality scores, financial institutions can identify high-integrity borrowers and mitigate the risks of greenwashing. Ready to bridge the gap between disclosure and capital allocation? Contact for expert advice to refine your transition risk due diligence or to integrate PCAF data quality scoring into your lending framework. Click here to get in touch. This article was written by Virna Chávez from the Green Initiative Team. FAQ – Frequently Asked Questions References & Further Reading Related Reading

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A sleek tablet on a minimalist wooden desk displaying green financial growth charts and satellite data, set against a background of a lush forest seen through a modern corporate office's glass windows, representing automated emissions monitoring and high-integrity MRV infrastructure.

Building High-Integrity MRV Infrastructure: From Manual Monitoring to Automated Systems

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Financial markets are currently undergoing a fundamental transition from “proceeds-based” financing to “performance-linked” structures. In the early stages of green finance, capital was simply earmarked for specific assets like wind farms or solar arrays. Today, Sustainability-Linked Loans (SLLs) and Bonds (SLBs) have effectively transformed climate performance into a financial covenant. Defining Performance-Linked Finance Sustainability-Linked Loans are corporate financing tools where the cost of capital, most commonly the interest rate, is directly linked to the borrower’s achievement of predefined Sustainability Performance Targets (SPTs). These instruments allow proceeds to be used for general corporate purposes, which distinguishes them from traditional green loans that require funds to be earmarked for specific environmental projects. Similarly, Sustainability-Linked Bonds are debt instruments where the issuer commits to reaching specific sustainability milestones. The financial or structural characteristics of the bond, such as the coupon rate, adjust based on the achievement of these targets. By utilizing margin ratchets, which are interest rate adjustments typically ranging from 5 to 25 basis points, lenders can incentivize corporate behavior directly. However, this evolution creates a technical paradox: for these incentives to be credible, they must be supported by high-fidelity data. If the cost of Monitoring, Reporting, and Verification (MRV) exceeds the financial benefit of the greenium, which is the interest rate discount, the instrument becomes economically unviable for the borrower and a reputational risk for the lender. To solve this, financial institutions must align their MRV investment with the scale and complexity of their portfolios. Why MRV Infrastructure Matters in Modern Finance The global transition to a net-zero economy has triggered a structural shift in climate finance. Performance-based climate finance requires robust monitoring systems to turn climate resilience into a priced managerial obligation. Institutions must move from subjective reporting to objective evidence to maintain market integrity. The current landscape shows that median baseline uncertainty in manual systems can span 171% of the mean estimate. This variability leads to over-crediting or inaccurate margin adjustments. High-integrity infrastructure uses multi-model ensemble approaches and historical geospatial data to reduce this variability. Navigating the MRV Evolution: A Sophistication Roadmap Institutional investment in MRV is generally categorized into three tiers based on asset size and the scale of sustainability-linked operations. Building a high-integrity “truth layer” requires a phased approach that balances capital expenditure (CapEx) against long-term operational savings. Tier 1: Small Institutions (<€1bn assets) Small institutions, typically those with less than €1 billion in sustainability-linked assets, often rely on Tier 1 methodologies. These prioritize minimizing upfront capital expenditure (CapEx) by using IPCC default factors—generic emission values provided for different activities—and manual reporting templates. The primary objective for these players is to reduce the administrative burden while maintaining a basic level of compliance that satisfies regulatory “tick-box” requirements. While accessible, this approach suffers from a significant “audit lag,” where verification cycles take 12 to 24 months, potentially creating “asymmetric information” risks where lenders cannot verify if a performance target was truly met. Tier 2: Mid-Sized Institutions (€1bn–€30bn assets) Mid-sized institutions represent the segment transitioning toward digitalized data ingestion. By utilizing cloud-based databases to aggregate borrower data, these institutions reduce manual reconciliation labor costs, which can otherwise reach $250,000 annually for a moderate portfolio. This phase focuses on efficiency and the standardization of reporting across different sectors to facilitate portfolio-wide risk assessment. By integrating third-party data, such as satellite-derived land-use changes, FIs can establish a more consistent and objective baseline for performance tracking. Tier 3: Large Institutions (>€30bn assets) Large institutions benefit from significant economies of scale by investing in full Digital MRV (dMRV). Although the initial CapEx is higher, the operational expenditure (OpEx) of verification is reduced by an estimated 50–70% through automation and the removal of physical site-visit requirements. For these entities, dMRV is not just a compliance tool but a strategic differentiator that allows them to offer more competitive terms and attract ESG-focused capital at lower costs. This transition enables “Internet Audits” where hardware and software are certified once, allowing for subsequent verifications to be conducted remotely. Institutional Tier Asset Threshold MRV Methodology Financial Result Small <€1bn Tier 1 (IPCC Defaults) Low CapEx / High labor Mid-Sized €1bn–€30bn Digitalized Cloud Reconciliation Savings Large >€30bn Full dMRV / IoT 50–70% OpEx reduction Step-by-Step Implementation of MRV Infrastructure To build a high-integrity truth layer, financial institutions should follow this phased roadmap : Step 1: Map the Current Data Landscape Evaluate existing portfolio management systems and identify where emissions data is missing or estimated. This assessment allows lenders to prioritize sectors with high materiality, such as energy utilities or heavy manufacturing. Step 2: Establish Sophistication Tiers Align investment with portfolio size. Small institutions (<€1bn assets) often rely on Tier 1 methodologies using IPCC default factors. Mid-sized institutions (€1bn–€30bn assets) transition toward digitalized ingestion using cloud databases to reduce manual reconciliation costs. Large institutions (>€30bn assets) invest in full Digital MRV (dMRV) to benefit from economies of scale. Step 3: Identify “DMRV Hotspots” The efficiency frontier targets the highest possible integrity-to-cost ratio rather than achieving 100% accuracy everywhere. Lenders should digitize priority workflow components, such as automated emission reduction (ER) calculations and third-party verification, where manual processes are slow and resource-intensive. Step 4: Deploy Middleware Gateways FIs should deploy a middleware layer to facilitate secure, real-time data ingestion from dMRV platforms rather than replacing legacy core banking systems. API gateways act as translators between IoT sensor data and traditional banking formats. Step 5: Align with Accredited Verifiers The ultimate guarantor of trust is the third-party verifier. For performance-based finance, verifiers must be accredited under international standards such as ISO 14064-3 and ISO 14065. Strategic Pro Tips for Implementation To transition from a “tick-box” compliance exercise to a high-value strategic operation, financial institutions should consider these advanced integration strategies: 1. Hard-wire Internal Carbon Pricing (ICP) Global best practice is moving beyond “token fees” or “shadow prices” used only for theoretical reporting. Effective ICP must be hard-wired into capital expenditure (CapEx) approvals, ensuring no project receives approval unless it remains viable under the internal carbon price. This strategy is essential for firms preparing for compliance landscapes like the Indian Carbon Market

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SESC and SENAC Bahia consolidate climate leadership with historic expansion of Carbon Neutral Certification

SESC & SENAC Bahia: Historic Expansion of Carbon Neutral Certification

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SUSTAINABILITY | CLIMATE ACTION | PROFESSIONAL EDUCATION In January 2026, five units of SESC and SENAC Bahia received or renewed their Carbon Neutral certifications by GI International, consolidating the most comprehensive decarbonization project in the service and professional education sector in Brazil. When, in 2022, the Senac Bahia Casa do Comércio Restaurant-School became the first Carbon Neutral certified restaurant in Brazil, the achievement sounded like a promise: that sustainability and operational excellence could go hand in hand. Three years later, that promise was not only fulfilled but multiplied. In January 2026, five units of the Sistema Comércio Bahia came together in a certification ceremony that marked a new chapter in the history of climate action in the country’s service sector. The ceremony brought together two distinct but complementary processes. On one hand, the Carbon Neutral recertification of the Senac Bahia Casa do Comércio and Pelourinho Restaurant-Schools and the Grande Hotel Sesc Itaparica. On the other, the debut of two new spaces in this journey: the Sesc Casa do Comércio Theaters and the Sesc-Senac Pelourinho Theater, which achieved their first Carbon Neutral certification, expanding the scope of the project to the cultural and events sector. The result is an unprecedented institutional climate action portfolio in Brazil: five certified units, covering gastronomy, hospitality, and culture, all operating in Salvador and the Baía de Todos os Santos, all committed to concrete decarbonization pathways through 2030. The progress of the Restaurant-Schools: growing without compromising the climate The Senac Bahia Casa do Comércio Restaurant-School completed in 2025 its third greenhouse gas inventory, referring to the year 2024, and the numbers tell a story of decoupling between growth and environmental impact, something rare and valuable in the gastronomic sector. In 2024, the restaurant served 94,515 people, an increase of 23.2% compared to 2023. In contrast, absolute emissions increased only 10.9%, rising from 1,089.32 to 1,212.94 tons of CO2eq. What is most impressive, however, is the emissions intensity indicator per person served: 12.78 kgCO2eq per client, a reduction of 9.96% compared to 2023 and an expressive 26.7% compared to the base year of 2021. This accumulated reduction of 26.7% in just three years is no coincidence. It results from strategic, consistent, and measurable decisions. The most impactful of these was the reformulation of the menu: emissions associated with beef and lamb per person served fell 26.13%, as a result of conscious substitution with lower environmental impact proteins, such as seafood, poultry, and pork. The purchase of 100% renewable energy through the free market completely eliminated emissions from electricity consumption (Category 2), an achievement that remains a pillar of the decarbonization strategy. The 90.44% reduction in paper consumption per person served also deserves attention, resulting from an operational transformation that goes beyond symbolism. The most revealing result lies in the trajectory relative to the 2030 target. The restaurant had projected reaching 14.54 kgCO2eq per person as an intermediate benchmark in 2024. By achieving 12.78, it was approximately one to two years ahead of the planned schedule. This means that the target of a 50% reduction by 2030, starting from 17.44 kgCO2eq/person in the base year, is not only on the horizon but appears achievable ahead of schedule. The Senac Bahia Pelourinho Restaurant-School, in turn, completed in 2024 its first year post-baseline, in an inaugural monitoring cycle. With a total footprint of 1,283.22 tCO2eq and an intensity indicator of 12.18 kgCO2eq per person served (calculated over 105,345 clients), Pelourinho establishes its starting line clearly. The first decarbonization cycles often present adjustment challenges, and Pelourinho was no exception: a 14.91% increase in absolute emissions alongside a 6.64% increase in audience signals the path still to be traveled. Even so, positive results are already emerging: solid waste decomposition fell 33.08% per person served, and employee commuting decreased 12.13%. The 50% reduction target by 2030, based on the 11.30 kgCO2eq/person indicator in 2023, is ambitious and achievable, especially with the implementation of the structured actions in the Climate Action Plan that will be put into practice starting in 2025. Grande Hotel Sesc Itaparica: 41.48% reduction in emissions intensity Among all the decarbonization stories celebrated in January 2026, that of the Grande Hotel Sesc Itaparica may be the most eloquent in numerical terms. In its second Carbon Neutral certification cycle, the hotel presented results that challenge the conventional logic that growth and emissions reduction are conflicting objectives. In 2024, the hotel recorded a 13.84% increase in the number of overnight stays, rising from 38,447 to 43,767. Simultaneously, absolute emissions fell 33.38%, from 1,966.34 to 1,309.90 tCO2eq. The intensity indicator per overnight stay dropped from 51.14 to 29.93 kgCO2eq, a reduction of 41.48% in a single cycle. This result demonstrates real gains in carbon management efficiency and does not stem from a single isolated action, but from a set of operational transformations. The transition to 100% renewable energy, with I-REC certification, completely eliminated emissions from electricity consumption, which in 2023 represented 38.61 tCO2eq. The production of raw materials and inputs, the main source of emissions in any hospitality operation, decreased 32.87% in absolute values and 41.03% in intensity. Employee commuting decreased 32.97% in absolute terms. Improved data collection on refrigerant gases, adopting a methodology based on primary replenishment data instead of estimates based on average rates, also contributed to more accurate and representative measurement of operational reality. The Grande Hotel Sesc Itaparica concretely illustrates that sustainable tourism is not a niche or an aspiration: it is a viable business strategy that delivers economic and environmental value simultaneously. Located on the island of Itaparica, in the Baía de Todos os Santos, the hotel also carries the symbolic weight of protecting one of the richest marine ecosystems in the southern hemisphere. Expansion into culture: the Sesc Theaters reach certification The major new development in January 2026 was the incorporation of two theaters into Sesc Bahia’s Carbon Neutral portfolio. The Sesc Casa do Comércio Theater and the Sesc-Senac Pelourinho Theater conducted their first greenhouse gas inventories, referring to the year 2024, and immediately achieved Carbon Neutral

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Global Roundtable Towards low carbon and climate resilient tourism

Climate Leadership in Action: The Bonito Model at the 2026 Global Tourism Roundtable

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The global tourism industry stands at a critical transition point where a destination’s success is no longer measured solely by visitor numbers, but by its ability to protect the natural assets that sustain it. On February 26, 2026, Green Initiative will join global leaders at the One Planet Global Roundtable to discuss “Practical Solutions for a Climate Resilient Tourism Future.” Strategic leadership is the cornerstone of this evolution. A primary voice in this transition is Bruno Wendling, President of Fundtur-MS (Mato Grosso do Sul Tourism Foundation), who has transformed the state of Mato Grosso do Sul, Brazil, into a global laboratory for climate-resilient development. The Bonito Model: An Award-Winning Legacy of Resilience Under the management of Bruno Wendling, the city of Bonito (MS) and Fundtur-MS have consolidated their positions as world references in sustainability. The partnership with Green Initiative not only secured Bonito’s status as the world’s first Carbon Neutral ecotourism destination but has also yielded a remarkable record of international acclaim over the last three years (2023–2025). Climate Leadership Awards and Milestones This strategic commitment has earned achievements that serve as an inspiration for the entire sector: Strategic Actions by Fundtur-MS The success of Mato Grosso do Sul is the result of critical actions implemented by Fundtur, which serve as a framework for destination certification and local climate action: Matheus Mendes, Portfolio Manager at Green Initiative, will join forces with Bruno Wendling at the Roundtable to detail how these achievements can be replicated. They will discuss the sector-specific emission measurement nuances that allow tourism destinations to move from theoretical promises to verifiable results. Join the Global Conversation This event is an invitation to witness the practical implementation of the future of tourism. Participants will learn how the partnership between Fundtur and Green Initiative is scaling solutions to make Mato Grosso do Sul Brazil’s first carbon-neutral state, creating a climate positive tourism model that generates brand value and competitive advantage. Event Details: Register for the afternoon session on 26th February here: One Planet Network Event Registration Download the event pdf here.

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Photorealistic 16:9 wide shot of a modern industrial snow cannon spraying artificial mist onto a rocky, snowless mountain peak during a golden hour sunset, illustrating the impact of global warming on Winter Olympic venues.

The Future at Stake: How Global Warming is Transforming Winter Olympic Venues

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The Winter Olympic Games represent the ultimate expression of human skill on ice and snow. However, behind the acrobatics and extreme speeds, the natural stage for these competitions faces an existential threat. The reality is direct: the global climate warms with each passing decade and cities that historically hosted these events record increasingly higher temperatures. This phenomenon deeply alters the conditions of historic venues. The rise in average February temperatures transforms what were once freezing and reliable winters into periods of climate uncertainty. For financial institutions and public policy agencies, understanding this progression is vital to evaluate long-term infrastructure viability and asset resilience against climate change. The Thermal Rise in Historic Venues A detailed analysis of cities that have served as Winter Olympic hosts since 1950 reveals a clear warming trend. The average February temperature in these locations has risen steadily over time. Today, host cities record temperature averages several degrees higher than when they first held the games. The Case of Cortina d’Ampezzo Cortina d’Ampezzo, Italy, serves as an emblematic example of this transformation. This city was the original host of the 1956 Winter Games. From that year to the present, February temperatures in the region have risen by approximately 3.6 °C. This increase shifts the freezing line and reduces the stability of the natural snowpack, which forces organizations to rethink their resource management strategies. The Lesson of Beijing 2022: The Artificial Snow Dilemma The Beijing 2022 edition marked a concerning milestone in this trend. Due to the scarcity of natural precipitation and inconsistent temperatures caused by climate change, these were the first Games to rely almost 100% on artificial snow. While technology allowed the competitions to take place, the environmental cost was immense. Millions of liters of water and a massive amount of energy were required to power snow cannons in a region already suffering from water stress. This model was unsustainable and demonstrated that, without real climate action, sporting events of this magnitude will become high-impact industrial processes instead of celebrations of nature. Why Winters are Warmer This thermal increase is a direct consequence of global warming. The planet experiences a generalized rise in temperature due to the accumulated emissions of greenhouse gases (GHG). This process makes winters progressively warmer in most mountainous and northern regions of the world. Cities that previously guaranteed extreme cold conditions now face comparatively mild Februaries. Climate change erodes seasonal reliability, affecting not only elite sports but also local economies that depend on winter tourism. The transition toward a low-carbon economy is necessary to preserve these ecosystems and the infrastructure associated with them. Toward Carbon Neutral Venues and Climate Smart Events The future of major events with high tourism demand must evolve. Mitigating damage is not enough; Olympic venues have the opportunity to transform into Carbon Neutral Venues that also host Climate Smart Events. A Climate Smart Event uses technology and citizen participation to reduce its carbon footprint to the minimum. Additionally, it promotes greater carbon sequestration through tree planting in hectares of ecological restoration projects. Given the massive influx of visitors and the media buzz they generate, these events must be participatory platforms where tourists do more than consume. They must engage actively in sustainability. We can imagine venues that function as collaborative laboratories for climate action, where transport is 100% electric, energy comes from local renewable sources, and every visitor contributes to the regeneration of the host ecosystem. A Shared Commitment: The Three Pillars of Action The magnitude of the climate challenge in winter sports indicates that we cannot leave the solution solely in the hands of organizing committees. Joint action is required under three fundamental pillars: The Time to Act is Now Climate change is not a distant spectator; it is already dictating the rules of the game in our mountains and stadiums. However, this challenge is also our greatest opportunity to innovate. Participating in a Climate Smart Event or choosing a Sustainable Destination is more than a travel choice. It is a step toward the goal of a positive future for our planet. We invite you to be more than a simple observer of climate transformation. As citizens, business leaders, and nature lovers, we have the capacity to turn every major event into a catalyst for hope and regeneration. Let us act with the same determination and passion as an Olympic athlete to protect our planet! This article was prepared by Erika Rumiche Hernández from the Green Initiative Team. Information Sources and References Related Reading

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A professional corporate interior showing a digital display with a decarbonization graph and a green holographic globe, illustrating the backcasting climate methodology for net-zero alignment.

Backcasting from Net-Zero: When to Demand Science-Based Ambition

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Net-zero alignment represents the highest level of climate ambition for modern organizations. While many firms start with incremental improvements, leading enterprises adopt a strategic methodology known as backcasting. This approach starts with a vision of a decarbonized future and works backward to identify the necessary steps to reach that goal today. For financial institutions, backcasting serves as the primary tool for identifying borrowers who are truly committed to long-term sustainability and systemic change. Traditional business planning often relies on forecasting, which projects future performance based on current trends and historical data. While useful for short-term operations, forecasting often fails to account for the radical shifts required by the global energy transition. Backcasting solves this problem by centering the planning process on a fixed, science-based destination, such as achieving net-zero emissions by 2050. This approach ensures that every interim milestone contributes directly to the final objective. Why Backcasting Matters for Climate Finance The backcasting climate methodology is essential for mitigating transition risks within a financial portfolio. As global regulations tighten and carbon prices rise, businesses that rely on incremental forecasting risk becoming stranded assets. Backcasting forces an organization to confront the structural changes needed for survival in a low-carbon economy. Financial institutions use this methodology to verify the “Net-Zero ambition” of their largest clients. It provides a rigorous framework to ensure that a company’s long-term goals are more than mere marketing claims. By demanding science-based ambition, lenders protect their capital from the volatility of the fossil fuel phase-out. How to Implement the Backcasting Process Implementing a backcasting framework requires a shift in organizational mindset from “what is likely” to “what is necessary.” Lenders should look for the following five steps in a borrower’s strategic plan. Step 1: Define the Desired Future State The process begins with a clear, time-bound definition of success. For most organizations, this is a state where GHG emissions are reduced to the absolute minimum, with any residual emissions neutralized through high-quality carbon removals. The borrower must specify the target year, typically 2040 or 2050, in alignment with the Paris Agreement. Step 2: Characterize the Decarbonized Business Model The organization must describe how it will operate in the target year. This includes identifying the primary energy sources, the level of energy efficiency achieved, and the technological innovations required. A manufacturer, for example, might envision a future state where 100% of process heat comes from green hydrogen. Step 3: Work Backward to Identify Strategic Milestones Once the destination is clear, the organization works backward to set interim targets. These milestones act as “checkpoints” to ensure the company remains on the science-based pathway. Common intervals include 5-year and 10-year targets that satisfy the requirements of the absolute contraction method. Step 4: Conduct a Gap Analysis By comparing the future state with the current operational baseline, the borrower identifies the “innovation gap.” This step highlights the specific areas where the business requires new technology, policy changes, or significant capital investment. Identifying these gaps early allows financial institutions to structure the appropriate climate finance products to bridge them. Step 5: Develop the Immediate Action Plan The final step is translating the long-term vision into immediate operational tasks. This results in a Climate-Mitigation Action Plan (CMAP) that outlines the specific investments needed over the next 12 to 36 months. This plan must align with the broader Science-Based Target Setting Methodologies. When to Demand Backcasting from Borrowers While the Forward-looking methodology is suitable for many SMEs, certain scenarios require the more rigorous backcasting approach. Lenders should prioritize backcasting in the following situations: Risk Mitigation Benefits for Financial Institutions Demanding science-based ambition through backcasting provides three critical benefits to a lender’s portfolio: Conclusion The backcasting climate methodology is the gold standard for organizations aiming for Net-Zero leadership. By starting with the end in mind, businesses move beyond incrementalism and begin the deep work of transformation. For financial institutions, verifying this ambition is the most effective way to align portfolios with the global climate transition and secure long-term financial performance. This article was written by Matheus Mendes from the Green Initiative Team. Related Reading

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