Resource conservation and toxin reduction: our Impact Business Models in practice
At Clade, we’re a certified B Corporation. This means we’ve been verified by B Lab to meet high standards of social and environmental performance, transparency and accountability.
During the assessment, we received an overall score of 86. However, we received additional recognition for our Impact Business Models in relation to Resource Conservation and Toxin Reduction.
Both these areas are designed to evaluate a company’s overall environmental management practices as well as its impact on the air, climate, water, land, and biodiversity.
For the Resource Conservation Impact Business Model, we scored 13.2 points. This Impact Business Model specifically recognises products/services that minimise waste through design circularity, offset remaining carbon impacts, and reduce resource use and/or limit waste to landfill.
Meanwhile, we scored 8.2 for Toxin Reduction. This Impact Business Model specifically recognises products/services that reduce or remediate toxins or pollution.
Tim Reynolds, our financial controller, chatted to B Lab about our Impact Business Models. He examines why we felt these areas were important and shares some of the ways in which we implemented them.
Why did you decide to focus on these Impact Business Models?
Toxin Reduction
Refrigerants of choice, in many industrial applications, can have a very high Global Warming Potential (GWP).
Leakages of such refrigerants can happen as a result of service and maintenance, decommissioning, and large amounts of pipework for the refrigerant to travel through, pipe fractures can happen.
Any of these can have a significant detrimental impact on the environment if a high GWP refrigerant is used.
Resource Conservation
In 2021, the UK government committed to scaling up the heat pump rollout. The Climate Change Committee projected that to reach net zero, the use of heat pumps will be needed in at least half, but likely closer to 80%, of homes by 2050.
We specialise in the non-domestic heat pump market, but the fact remains – the use of heat pumps (in all buildings) in the UK is critical to meet net-zero targets.
What were the first considerations for mapping out whether this was achievable and valuable to your business?
Toxin Reduction
The focus on natural refrigerants is a direct result of this because the Global Warming Potential (GWP) is much lower.
Our specialism is in R744 (CO2) and the GWP of that refrigerant is 1. I.e. the environmental impact from leakages is minimal compared to alternatives like R407F (hydrofluorocarbon blend) that have a GWP of 1,825 and have been proven to contribute significantly to climate change.
Many of these alternative refrigerants are being considered PFAS (polyfluoroalkyl substances). These substances will remain in the environment for thousands of years and are extremely harmful. They have become known as “forever chemicals”.
The human-made chemicals are in your blood, your clothes, and your cosmetics. They have been detected in air, water, soils, sediments, and rain at levels that would be considered unsafe in drinking water.
Our CO2 technology actively reduces and removes these chemicals because CO2 is a non-toxic, natural refrigerant alternative.
Resource Conservation
Following our success as a refrigeration manufacturer/installer for blue chip customers, we decided to utilise that experience and skill set to diversify into the heat pump market and apply the same natural refrigerant technology to the manufacture/installation of heat pumps.
Approximately, how long did it take for your company to implement this Impact Business Model?
These business models were achieved prior to us gaining B Corp certification because it was already fundamental to our purpose.
We were able to demonstrate the benefit of what we do through research and analytics (internal) and externally published government (UK and EU) policies and commitments.
Which teams in your company were integral to helping you implement the changes to your operations that ensured you achieved the Impact Business Model?
We recruited a Chief Technical Officer to support the Founding Director in order to drive and focus on the heat pump technologies that we have developed.
He is supported by a highly technical Engineering/Design team, and they are responsible for the continuous development of our heat pump products.
Since implementing the Impact Business Model, how has it impacted your business?
Clade will deliver in the region of 16MW of natural refrigerant heat pump capacity to the market this year, an increase over the preceding years.
This can be attributed to the success of our full-service offering and engineering excellence, the rise of natural refrigerants for which Clade is a leading proponent, and a slight increase in the general market, largely driven by the public sector.
The outlook for the next few years depends on the outcome of the general election and the confidence in the business community. We have experienced several instances of private market buyers holding off on decisions due to the uncertain outlook.
The continued commitment to public sector decarbonisation is welcome and will help build confidence in the technology as well as skills in the wider market.
Skills development is fundamental to our success. Therefore, Clade will continue to provide training and advice to our customers, installers, and consultants. We will be launching our Partner Program to acknowledge those who have the expertise to deliver successful projects using our heat pumps.
Next year, Clade will bring new heat pump models to the market. We have already soft-launched the Rowan, Maple and Birch heat pumps. The first units of these new models will be delivered to sites early in the year.
This past year has been both exciting and challenging for Clade and our teams. We have continued to grow our teams, product portfolio, and service provisions as well as striking a major partnership with Plug Me In to finance heat pump installations, making it even easier for our customers to transition to low carbon heat.
Head over to our dedicated page to learn more about our B Corp certification.
Or, simply get in touch to find out how our team can help your business transition to a green heating system.