Climate Financing – a Key Part of Paf’s Environmental Efforts

Paf has engaged in climate financing every year since we began measuring our climate impact. Climate financing helps accelerate the transition to more environmentally friendly practices. This year’s contribution was directed to a project in South America.

Paf is deeply committed to environmental sustainability and has a clear goal to reduce our climate impact and reach Net-Zero by 2040. As part of our environmental strategy, we actively map, measure, and reduce our emissions – both from our own operations and throughout our value chain, including indirect impacts from suppliers and partners.

“But we don’t stop there. Since 2017, we have chosen to climate finance all our measured climate impact every year. Today, we measure over 95% of our emissions – fully aligned with the Science Based Targets initiative (SBTi), which has validated our Net-Zero goal,” says Daniela Johansson, Deputy CEO & Chief Responsibility Officer.

Climate financing (also known as climate offsetting) means that Paf funds certified climate projects that help reduce or capture greenhouse gases somewhere in the world. This could involve supporting renewable energy, energy efficiency, or reforestation projects in developing countries.

“Over the years, we’ve supported projects in several parts of the world – mostly in countries that lack the resources to invest in climate solutions themselves, but also in places like Iceland, where technology enables the direct capture of carbon dioxide from the air,” says Ludvig Winberg, Corporate Communication Manager

A complement to emission reduction

Climate financing is not a substitute for reducing emissions – it’s a complement. By investing in climate projects, Paf takes responsibility for the climate impact we have not yet been able to reduce, while also contributing to environmentally sustainable development on a global scale.

“Paf is a strong company with the resources to support the transition our world needs. That’s why we choose to climate finance our entire measured carbon footprint,” says Ludvig Winberg.

Hydropower in Peru

Paf is climate financing its entire business's climate impact in 2024 by supporting a project that develops hydropower in the Monzón district of Peru. The hydropower project in Monzón has an installed capacity of 20.58 MW and is located along the Aucantagua River, a tributary of the Monzón River.

“The project is included in the UN Carbon offset platform, and we trust that their projects are appropriately selected. Climate finance in itself is not a requirement for us to comply with the SBTi guidelines going towards Net-Zero, but it is nevertheless a strong recommendation from them that companies with resources contribute to environmental work on a broader level,” says Ludvig Winberg.

Find out more about Paf's environmental work.