"The gross misleading of customers must stop"

Be it politicians, customers, investors or employees - they are all now demanding sustainability from companies. However, founder Lubomila Jordanova explains in an interview that the efforts of many companies do not yet go far enough.

Lubomila Jordanova co-founded the SaaS start-up Plan A in 2017. It offers software that companies can use to calculate and reduce their own CO2 emissions. Now Jordanova and her start-up are launching the "Make 2021 count" campaign to achieve tougher targets against greenwashing. Is this a PR stunt that the start-up is using to promote its software? Or is it more than that? We asked the question.

Ms. Jordanova, your campaign is pushing for legal requirements to make greenwashing more difficult for companies. Hasn't the EU beaten you to it with the current taxonomy regulation?

This taxonomy is an important step, but in our view it does not solve the problem of companies being allowed to describe themselves as CO2-neutral, even if they are not. In addition, only financial institutions and large public interest entities are required to report, which prevents too many companies from transparently reporting their actual carbon footprint. This paves the way for greenwashing, which we want to put a stop to with our campaign.

However, CO2 neutrality in particular can be proven very clearly using simple mathematics. Where do companies cheat?

They very often don't take into account the emissions that arise in their supply chains because they can't be directly attributed to their own company. Then their own business may be climate-friendly. But no one is helped if all emissions are simply outsourced.

How do you intend to prevent this?

The European Union must create a clear definition of greenwashing. This could mean, for example, that companies that have very dirty supply chains but act as pioneers are no longer allowed to advertise their own climate neutrality. Because that is the greatest danger posed by greenwashing: companies that take the positive PR without actually doing enough.

For many industries, it would then become impossible to advertise their own sustainability, such as energy producers or the fashion industry. Aren't you afraid that this would put an end to their efforts in this area?

I don't think so. It's also not about pillorying entire industries. Nobody can realistically expect industries with historically high CO2 emissions to present a perfect climate balance overnight. But they must develop in the right direction, and they can certainly advertise this. But the gross misleading of customers must stop.

Your start-up Plan A offers software that calculates CO2 emissions, taking supply chains into account. The product could of course get a boost if the campaign is successful, so you will benefit.

We are not the only ones behind the campaign. Among other things, we launched it in collaboration with the Greentech Alliance, which includes more than 600 companies working to make the economy more sustainable. The campaign is by no means just an advertising campaign for our product.

Nevertheless, the question arises as to how effective your software would actually be in preventing greenwashing. As a company, can't I simply enter false data and then get a better carbon footprint?

Of course, we can't completely prevent brazen fraud either. But we are trying to build in safeguards. For example: If the electricity bill submitted for your office is very low in relation to the office space, the system sounds the alarm and highlights this irregularity. We also pay close attention to who buys our software. We need to feel that our customers are serious. But we don't exclude any industry or company per se. Our ultimate goal is to take effective action against climate change. And on this mission, we welcome any company that is genuinely willing to sustainably reduce its carbon footprint and do its bit for the planet.

Thank you very much for the interview.

Personal details: Lubomila Jordanova founded the start-up Plan A in Berlin together with Nathan Bonnisseau in 2017. She studied at Aston University, ESADE Business School and the London School of Economics, among others. She is also co-founder of the company builder Satgana and the Greentech Alliance, which brings together start-ups with sustainable technology solutions. In 2020, the US business magazine Forbes included her in its prestigious "30 under 30" list.