Mercedes AMG PERONAS Formula One Team Invests in Carbon Removal Via Frontier, Ecometric, Regen Network and others
28 June 2024
Mercedes-AMG PETRONAS F1 Team accelerates towards Net Zero with investments into carbon removal & innovation
The Mercedes-AMG PETRONAS F1 Team is pleased to announce a new round of investment into innovative carbon removal initiatives as part of our ambition to become one of the world’s most sustainable sports teams.
As a Formula One team racing on multiple continents, we have worked tirelessly to understand the environmental impact that we have and the role that we can play in driving change. We are reducing our race team’s emissions, targeting a 75% reduction by 2030 and setting SBTi-aligned targets for our entire supply chain to hit Net Zero by 2040, in line with our Climate Pledge Commitment.
Emissions reduction remains our primary focus, but we recognise that some sectors within our footprint may have lingering residual emissions which will require the highest quality, lasting carbon removals.
Carbon removal projects actively remove carbon from the atmosphere. Removal can be achieved through both natural and technological solutions, offering storage in a variety of locations and over a range of timeframes. In line with the recommendations of the Oxford Offsetting Principles, high quality projects with long durability and low risk of carbon being released back into the atmosphere can be used to counterbalance residual emissions in support of Net Zero strategies.
Recognising that the carbon removal market is still in its infancy, with new project types and methodologies, we have begun to invest in a blended portfolio of nature-based and permanent removal initiatives that we anticipate will help us meet our Net Zero targets in the short, medium, and long-term. We are supporting schemes operating in different geographies and at different scales to promote innovation, build confidence and help make the case for market growth.
The first project is a carbon removal purchase, facilitated by Frontier, and is our first investment in permanent, technology-based carbon removal solutions.
To compensate a portion of our residual emissions, carbon will be permanently sequestered on our behalf, via new technologies such as direct air capture, enhanced weathering, and biomass sequestration. Upfront purchases will help to scale the most promising carbon removal start-ups by providing them with guaranteed demand and development through forward-looking commitments.
We have also made a three-year commitment to a soil carbon removal project in the UK, generating credits which will help compensate for a portion of our residual carbon emissions.
28 June 2024
These pioneering projects, breaking ground in their respective sectors, are part of our blended approach and transition towards high-integrity removals in line with the Oxford Offsetting Principles.
Alice Ashpitel, Head of Sustainability, Mercedes-AMG PETRONAS F1 Team:
“ Innovation is at the heart of everything we do, both on and off the track. These new projects reflect our commitment to pioneering solutions that not only mitigate our environmental impact but also drive broader change. We’ve explored many solutions, from immediate projects to future tech, that can help us implement innovative carbon removal methods and reach our long-term climate goals. Independent experts have guided us through the process in selecting the projects that we’re announcing today. We remain committed to driving emissions reduction, and we hope our investment in innovative removal initiatives will boost their impact and help the market grow.”
Accelerating Carbon Removal Technologies with Frontier
Our agreement with Frontier will help accelerate carbon removal technologies that store carbon permanently (> 1,000 years), do not compete for arable land and have a path to being affordable at scale (< $100/ ton), even if they’re not there today.
These are crucial requirements to ensure long-term viability and we anticipate our carbon removal credits with Frontier contributing to our permanent removals as early as 2027.
Hannah Bebbington, Strategy Lead at Frontier:
“A lack of customer demand has been a huge blocker to progress in carbon removal. Purchases like that made by the Mercedes-AMG PETRONAS F1 Team send a clear signal to entrepreneurs and investors that the market is ready to scale up. Every business that is serious about climate needs to be doing this.”
Supporting the Adoption of Regenerative Agricultural Practices with Blaston Farm
Closer to home, we are investing in a project at Blaston Farm in Leicestershire where this initiative is set to inspire wider adoption of regenerative agricultural practices across the UK.
We are purchasing nature-based carbon removal credits from Respira International to compensate for residual carbon emissions in our footprint today. Here, we’re not just capturing carbon; we’re enhancing soil health, boosting crop productivity, nurturing biodiversity and empowering farmers with new revenue opportunities.
Our investment at Blaston Farm aligns with stringent registry standards, ensuring that each greenhouse gas reduction is precisely calculated. This pioneering project represents a new carbon accounting methodology which, alongside independent validation, will help us uphold the highest levels of credibility and trust.
Soil is the world’s largest terrestrial carbon sink, emphasising the crucial role of soil management in climate change mitigation. A shift to Regenerative Agriculture has the potential to sequester atmospheric CO2, mitigating an estimated 5–10% of global emissions if widely adopted.
The project at Blaston Farm will demonstrate that conventional production systems are associated with soil organic carbon losses, whereas regenerative systems are recording gains.
David Wright, CEO of Ecometric:
“Our highly accurate soil organic carbon monitoring system merges direct soil measurement with AI-driven image analysis. This fusion significantly enhances the accuracy and scalability compared to conventional systems. UK corporates are now empowered to actively participate in mitigating climate change through regenerative soil management, as demonstrated by changes in carbon stock. On behalf of Respira, Indigro and Hylton Murray- Philipson, Farmer and Estate Manager at Blaston Farm, we are delighted to collaborate with the Mercedes-AMG PETRONAS F1 Team offering them the potential to compensate for their ongoing emissions by funding domestic sequestration and, in turn, provide performance related financial reward back to the farm to incentivise their positive change”.
The investments announced today form part of our wider sustainability strategy and commitment to reach Net Zero.
Find out more about our team’s commitment to sustainability here.
Notes:
About Frontier
Frontier is an advanced market commitment founded by Stripe, Alphabet, Shopify, Meta and McKinsey, along with support from thousands of businesses through Stripe Climate. With a pledge to purchase over $1 billion of permanent carbon removal between 2022 and 2030, Frontier aims to spur the development of carbon removal technologies by guaranteeing future demand. By sending a strong market signal to researchers, entrepreneurs and investors, Frontier is driving innovation and investment in the carbon removal sector, contributing to global efforts to combat climate change.
Offtakes are a uniquely catalytic way to buy carbon removal. A forward purchase of offtakes is a contractual agreement to purchase carbon removal at a certain price for delivery and retirement in future years. Offtakes are crucial to scaling the carbon removal market because the guaranteed multi-year demand allows suppliers to secure financing (e.g. a loan from a bank to develop the project) and expand supply capacity. If more buyers purchase offtakes, we can help create new carbon removal supply, rather than compete over what exists today.
frontierclimate.com
Our purchase via Frontier is a forward purchase delivering technology-based carbon removal solutions as soon as 2027.
About Respira International
Respira International is an impact-driven carbon finance business. Respira operates with an innovative offtake and profit share model which reinvests back into project stakeholders. Respira’s high-quality carbon credits allow corporations and financial institutions to mitigate their environmental impact. Respira channels private capital into climate solutions ensuring long-term relationships with trusted carbon project developers that enable its clients to build sustainable, climate-positive businesses and portfolios. Respira’s team combines deep and varied experience working in global financial markets with a robust understanding of carbon project development in leading international conservation organisations.
respira-international.com
About Ecometric, Blaston Farm and Indigro
Ecometric worked with the Blaston Estate to accurately measure baseline and annual field- level soil carbon stock change in support of their regenerative agriculture adoption and sustainability strategy. The owner Hylton Murray-Philpson and the agronomy team from Indigro used this quantification data to improve sustainable productivity and reduce the Estate’s carbon footprint — principally through lower inputs, the adoption of min till, and the inclusion of companion and cover crops in the rotation. Ecometric’s results evidenced that more carbon was being annually added to the soil than was being emitted by crop production, creating a climate-positive soil carbon surplus.
The carbon registry Regen Network independently audited the results and issued Carbon Credits for the additional carbon sequestered in the soil beyond the crop production emissions. Selling these Carbon Credits, based on measured soil carbon gains, validated the farm’s regenerative agriculture practices and created a new income stream. The powerful combination of accurate data, agronomic knowledge and performance-related financial incentives provides a pathway for British farmers to profitably transition to a climate- positive future.
Our investment is a three-year commitment to a soil carbon removal project generating credits which will help compensate for a portion of the team’s residual carbon emissions.
www.ecometric.co.uk www.respira-international.com
Contacts:
Bradley Lord
Chief Communications Officer, blord@mercedesamgf1.com, +44 7785 682 893
Nicola Armstrong
Head of Corporate Communications, narmstrong@mercedesamgf1.com, +44 7793 844549
