The Easiest Path For Companies To Reach Net Zero
Bend handles emissions calculations seamlessly within their corporate credit card, empowering climate-friendly businesses on their path to net zero.
Bend, a pioneering corporate card provider, is reimagining the financial landscape by making carbon accounting not only accessible but integral to financial operations. By integrating this climate-focused component with an array of banking services, Bend strives to redefine the sustainability conversation in corporate spaces.
I had a chance to sit down with Co-founder & CEO Ted Power to discuss his startup journey, his commitment to climate change mitigation, and Bend’s role in empowering businesses to understand, confront, and reduce their carbon footprints.
Most companies, despite their best intentions, don't have the time or resources to dedicate to climate action. That’s why Bend is focused on offering free, entirely automated climate insights.
As a company that caters to climate-friendly businesses, it is leading the charge in assisting companies to better understand their ecological impact and how they can take steps toward carbon neutrality. With the approach of overlaying climate data onto financial operations, Bend is making it feasible for companies of all sizes to engage with their climate impact meaningfully.
To learn more about Bend, hear what the CEO told me below and visit their website at useBend.com.
Jacob Sheldon: Can you explain what Bend does?
Ted Power: Bend is a specialized corporate card provider catering to environmentally conscious businesses. Our primary objective is to assist companies in understanding their ecological footprint and identifying opportunities for emissions reduction. Our offering includes a high-yield savings account, corporate cards equipped with spend management controls, and all the conventional banking features such as ACH and wire transfers. By seamlessly integrating these services, we empower growing businesses to confront their climate impact with embedded climate data insights in their financial operations.
Jacob: What motivated you to start Bend?
Ted: Well, about a year ago, we embarked on the journey of founding Bend with a strong desire to make a meaningful contribution toward addressing the urgent issue of climate change. It's undeniably one of the defining challenges of our generation. However, what propelled us was the recognition of a specific opportunity. Prior to Bend, I co-founded a company called Abacus, which is an expense management platform. In 2018, we successfully sold Abacus to a larger company named Inverse, a prominent player in spend management with substantial annual revenue.
During our time at Abacus, we discovered something intriguing through customer conversations. We were helping these businesses manage their travel expenses, hosting costs, and marketing spend. It became apparent that for many of them, these categories constituted the largest sources of emissions. Some of our customers were already contemplating how they could engage with the climate impact of their operations. They faced mounting pressure from customers, investors, and employees to address this critical issue. It became evident that this was a natural area where we could integrate climate considerations.
With this realization, Bend was born. Our primary objective was to harness the immense value of an organization's spending data—the wealth of information generated through their day-to-day operations—and overlay climate insights onto that data. For instance, we automated calculating CO2 emissions from flights and assisted companies in reevaluating their travel policies. We also focused on optimizing emissions related to website hosting, enabling companies to make informed decisions about their AWS regions and other factors. It's important to note that what we're doing is not groundbreaking. Many companies already engage in carbon accounting, utilizing data to generate reports and context. However, the current state of climate data is such that only the largest corporations can justify the resources required for this endeavor due to its highly manual nature.
Our goal at Bend is to unlock the potential of the remaining 99% of companies that have yet to engage meaningfully with their climate impact. Achieving this necessitates automating the process, and we understand that most teams need dedicated sustainability officers or individuals solely focused on these matters. Therefore, our focus lies in automating climate data analysis using existing transactional data—an abundant source of valuable insights.
Jacob: What specific problem does Bend solve?
Ted: The problem we're solving is the costly and time-consuming process of carbon accounting. Many companies understand the importance of measuring their emissions and addressing climate impact, and existing methods can be manual and often require expensive consultants or carbon accounting tools. These traditional approaches involve uploading CSV files and extensive data manipulation, resulting in a slow and inefficient process. The challenge is that this delayed information hinders effective decision-making and integration of climate considerations into business operations.
Bend tackles this problem by automating carbon accounting and integrating it into the financial tools that companies already use. We streamline the measurement of emissions and provide real-time insights, enabling businesses to understand their impact and identify reduction opportunities more efficiently. By embedding climate data into their existing financial processes, we make it accessible, cost-effective, and actionable for organizations of all sizes.
Jacob: Is Bend a full replacement for the current corporate credit cards companies use today? Do all expenses have to come through the Bend card?
Ted: We would love for companies to utilize our cards for as many expenses as possible. However, we understand that businesses have established financial processes, and it may only be feasible to partially replace their existing corporate cards in the near term. Companies have integrated their card information across various platforms and services online, making it challenging to transition abruptly.
Typically, when companies start using Bend, they route specific categories of expenses through our cards. For example, it could be business travel, Google Workspace subscriptions, or AdWords campaigns. This approach allows them to test the waters and get familiar with Bend. It's not necessary to migrate everything on day one. However, if companies wish to make claims about being net zero or track total company emissions, we need visibility into their overall spending. This can be achieved by consolidating relevant expenses onto the Bend card.
Nevertheless, we provide connectors for platforms like QuickBooks and other financial institutions, so larger and more complex companies can utilize Bend alongside their existing accounts. It all works seamlessly together. There's no issue with using Bend in conjunction with QuickBooks or other bank accounts; it's a flexible and adaptable solution.
Jacob: How do you calculate their emissions?
Ted: It's a fairly common process used by various organizations, such as Google, Microsoft, and Salesforce. It's not exactly light reading, but if you delve into corporate sustainability reports, you'll find that the methodology is quite similar. Specifically, when it comes to scope three goods and services emissions, which can get a little wonky, it's something we specialize in. The approach we and other organizations employ involves linking business activities with emissions factors. Let me give you an example. Suppose you visit your local Starbucks and purchase a coffee. Bend has an emissions factor specifically designed for Starbucks. How do we come up with this factor? We gather data from Starbucks' most recent sustainability report, which includes all their greenhouse gas emissions and their revenue for that period. The emissions factor reflects the carbon intensity of $1 spent at Starbucks. Using this factor, we can estimate the CO2 emissions associated with a specific amount spent, like $7 at Starbucks, or even less.
Jacob: Are you correlating Starbucks' emissions data with their revenue on a dollar-for-dollar basis? In other words, determining the emissions per dollar of revenue and applying the same correlation to the amount they spend?
Ted: Yes, that's correct. Our process involves generating emissions factors for hundreds of companies. These factors can be at the corporate level or even at the business unit level. For example, we differentiate between purchasing an Apple laptop and buying Apple ads because they have distinct carbon footprints. To achieve this, we utilize detailed sustainability data provided by Apple and align it with their financial reporting, including revenue breakdown by business unit. This methodology is applied when we have robust and specific data from the merchant. However, in cases where a local coffee shop doesn't disclose sustainability data, we rely on category emissions factors. Every action is associated with a merchant category code, and we have expended significant effort to develop a comprehensive set of factors for these codes.
Additionally, we are increasingly obtaining individual-level or line-item-level emissions estimates, providing us with greater precision. For instance, through our integration with Amazon Business, we capture the purchase price and the specific product details, thanks to the super-detailed emissions factors we have for each item and category in Amazon's catalog, linked to the unique UN SPSC codes. We acquire specific route data for flights, exact gallons of gas for purchases at gas stations, and so on. In each case, we provide a confidence score, indicating the reliability of the data. For highly granular and accurate data, such as those mentioned, we have high confidence scores, while our confidence level may be lower for general coffee shop purchases. It's important to note that while the data could be better, our primary focus is two-fold: enabling automation and identifying emission reduction opportunities. Instead of scrutinizing every transaction's CO2 calculation, we aim to highlight key areas where companies can significantly impact, such as reevaluating travel policies or website hosting practices. We present this information to companies as both nerdy carbon accounting and as actionable insights for emission reduction.
Jacob: I noticed you also offer treasury management. Could you tell me about that?
Ted: Absolutely. At the core of everything is a cash account. As a business, you need a secure place to store your money. When you join Bend, you'll enjoy a highly competitive interest rate of 4% APY, which is quite remarkable. If you compare it to other options available in the market, you'll see that it stands out as a leading rate. Along with that, we provide all the essential features you would expect from a business account. You can easily send ACH transfers and wires and have an account and routing number for seamless transactions. Our focus is to ensure that companies don't have to compromise on basic account functionality while benefiting from our climate-friendly approach. Our top priority is building a secure, FDIC-insured, high-yield account with robust money management and spend management controls. The climate-related aspects are undoubtedly exciting, but we firmly believe that establishing a strong foundation is paramount.
Jacob: Who is your target market for the Bend card and Treasury account?
Ted: At a high level, our target market encompasses any organization or business that aims to be more climate-friendly and seeks recognition for their positive climate actions. That's the broad picture. To delve into specifics, our early customers come from a diverse range of sectors. We have startups in the climate tech industry, individuals fixing up sailboats and documenting their journey on YouTube, and law firms with whom we have been actively engaging. Additionally, we are collaborating with certain nonprofits. We are currently in the experimental phase of determining the specific customer profiles we can serve effectively. Our target market generally consists of companies that desire to engage meaningfully with climate issues but may lack the resources or capacity to dedicate extensive time and effort to it. They want to integrate climate considerations into their core operations seamlessly.
Jacob: Can you share a specific success story you've had so far?
Ted: Certainly, I can provide a couple of examples. Let's start with one of our great customers, Fathom. They operate in a similar space as Otter, offering video note-taking services. If you visit their website, you'll notice a prominent mention that they track their emissions with Bend. With the founder's permission, I can share their story. During a conversation with the founder, he explained that they decided to use Bend due to the escalating costs associated with hosting their services last year. They invested significant time and effort in optimizing their hosting arrangements, driven primarily by cost considerations. However, it's worth noting that they also achieved substantial climate benefits alongside cost reduction. This pattern is quite common. In uncertain economic climates, there is a misconception that climate action is purely an added cost. In reality, many cost optimization measures also contribute to emissions reductions. For instance, cutting unnecessary travel, reevaluating event-related expenses, optimizing hosting costs, or consolidating software licenses have positive climate impacts. Companies choose Bend because it provides a safe way to simultaneously achieve cost reductions and receive recognition for their climate-friendly efforts. It allows them to amplify their achievements and gain credit for cost reduction and emissions reduction endeavors, all in one concerted effort.
Jacob: I noticed on Fathom's website they have a "Net Zero Certified" badge that links to a Bend page showcasing their recent emissions and offsets, even as recent as last month. Could you explain the process behind certifying companies and how they utilize this feature beyond what I'm observing?
Ted: Absolutely. When companies take such actions, we also want to assist them in promoting their efforts. Let me provide you with some examples of early customers who have utilized Bend in this manner. Rushton is a fascinating company that leverages Bend in a similar way. Another example is Delighted, a net promoter score survey tool. Likewise, if you visit Harmonic's website, specifically Harmonic AI, you'll find a link in the footer that directs you to their Bend profile.
Companies can share their data, generate reports, and display them. They can choose to export the report as a PDF or publish their profile. We collaborate with them to ensure the accuracy of the information presented. Notably, once the setup is complete, the process becomes entirely automated. As you mentioned, the information displayed is up-to-date, reflecting the most recent month's data. It's worth mentioning that even large Fortune 500 companies with dedicated sustainability teams typically release reports only once a year. However, with Bend's automation, updates occur seamlessly on a rolling basis without requiring any additional actions.
Jacob: Who are the individuals involved, and what motivates them?
Ted: As an early-stage company, our core team consists of myself, Thomas, who is my co-founder, and an exceptional climate scientist named Marion, based in the UK. Thomas and I have previously worked together at our former company, Abacus, where he excelled as one of our top engineers. Marion brings a unique skill set to the team with dual degrees in economics and Earth Sciences, making her the perfect combination of finance and climate expertise. She is deeply dedicated to the methodology aspect of our work. Currently, that forms the heart of our team.
Additionally, we have a small group of individuals who assist us in various capacities. It's important to note that we are still in the early stages of our journey. We went through Y Combinator last summer, secured funding of $2.5 million in the fall, and just recently launched our new product about two weeks ago. At this stage, we are actively seeking organizations and companies to try out our platform, and we are eagerly looking forward to what lies ahead.
Jacob: I understand how you assist companies in quantifying their climate impact and achieving net zero, but how do you measure and quantify your positive climate impact?
Ted: I have yet to calculate the exact numbers, but I want to be cautious because we can't solely take credit for our customers' positive climate actions. Our customers deserve recognition for their efforts. However, it's quite interesting for us to consolidate the data and assess the overall emissions reduction achieved by our customers. We are currently tracking emissions associated with tens of millions of dollars in spending. Ultimately, our goal is to contribute to significant emissions reductions, reaching gigatons of emissions. The more emissions we can help companies manage and reduce, the greater our impact.
Jacob: What is one particular strength that you and your team possess?
Ted: Our team excels in the product. We thrive when we release new features, engage customers, and iterate rapidly. If we’re self-critical, we might say that marketing is an area where we could be more naturally skilled. Nevertheless, we truly excel at building products.
Jacob: What's your current marketing strategy?
Ted: We're taking advantage of opportunities like this conversation with you at this stage. Being at this early stage allows us to do things that may need to be more scalable in the long run. In the future, we'll need a more coordinated approach, including product marketing, generating demand, and direct sales or sales development. For now, we can reach out to people via email, have conversations, understand their business objectives, and explore how we can assist them. That's how we're currently approaching marketing, and as we grow, we'll adapt and scale accordingly.
Jacob: What is your 60-second pitch to a customer?
Ted: Use Bend to become climate-friendly, earn a high yield, and enjoy great Spend Management features. Many companies believe there's a trade-off between climate-consciousness and sacrificing other business aspects, and we want to dispel that myth. With Bend, you can take actions that reduce costs and have a positive climate impact. It doesn't require extensive manual effort, hiring consultants, or compromising margins. You can run an efficient, high-margin business while being mindful of the environment. We provide a solution that combines financial benefits with climate consciousness, making it easier for businesses to contribute to a greener future.
Jacob: What's one piece of advice you have for other entrepreneurs?
Ted: If I were to give one piece of advice, and it may sound a bit self-serving, it's important to recognize that climate issues will impact every industry. Climate ultimately revolves around resource allocation.
My advice, especially for young entrepreneurs and individuals entering the workforce, is to consider how you can engage with climate-related issues. It doesn't necessarily mean everyone needs to join a climate-focused organization. Often, you can have just as much or more influence by advocating for change within your current roles. That's the key message. I understand the overwhelming nature of the problem, and it can be hard to see how you can make a meaningful impact. However, I want people to believe they have more power than they realize, particularly within their areas of expertise. For example, if you're a CTO or an engineer, you can optimize your code and transition to a data center powered by renewable energy. If you're a project manager, consider travel policies and promoting electric vehicle use. If you're in finance or procurement, incorporate sustainability considerations into your procurement processes. Even as a marketing manager, you can make conscious choices in events and partnerships. Every job has a surprising amount of leverage that aligns with overall business objectives and doesn't require compromising profitability. No job lacks a pragmatic approach to contribute to the cause. Even managing a 401(k), you can choose climate-aligned funds. Engaging with climate issues is not only the right thing to do but also enhances career prospects. This field will only grow in importance, and being recognized as someone engaged in this area can lead to promotions and other opportunities. That's my recommendation.
Jacob: What has been the most persistent issue since starting Bend?
Ted: It may sound somewhat pessimistic, but the most challenging aspect has been achieving product-market fit and navigating the climate space. The clean energy transition is a monumental task, with various factors such as the decreasing cost of solar, electric vehicles (EVs), and battery storage. There are positive developments, but it's still early, particularly in the United States. The landscape is rapidly evolving, although other regions like Europe have more established policies that drive climate engagement. In the US, companies often engage with climate voluntarily rather than due to external pressure. Most of our customers are driven by a mission and care deeply about the cause, and I truly appreciate them for it. However, this remains our biggest challenge: How can we navigate the market's relatively early stage, push for faster progress, and simultaneously make activation more accessible? We strive to ride the wave as more companies express their interest in climate engagement while working towards reducing the barriers to entry.
Jacob: The most challenging companies to onboard are often the biggest emitters and require significant investment to achieve net-zero status. It poses a significant barrier, but it's also where substantial carbon emission reductions can be made. How do you approach this?
Ted: There's an interesting dynamic at play here. On the one hand, certain sectors of the economy are inherently more carbon intensive, making it challenging to steer them toward the right path. It's undoubtedly the most difficult aspect. On the other hand, there are companies in sectors such as law, consulting, and tech that have lower carbon intensity. Some might argue that their impact could be more significant. However, it is all the more reason to help these low-hanging fruit cases credibly transition to net zero. If we don't start there, we will never be able to tackle the more challenging cases. Every company can contribute, and it's important to avoid the tendency to deflect responsibility by pointing to others who may have even worse emissions. We greatly admire companies that step up and engage, even if they begin from a relatively lower carbon intensity standpoint.
A good example is the multitude of remote-first companies we work with—they don't have emissions from managing extensive office spaces and real estate. Acknowledging and crediting such efforts while considering all these variables is crucial. It's commendable when companies fully embrace their impact and actively work towards sustainability.
Jacob: What is Bend's overarching goal?
Ted: Our ultimate goal is to ensure that every business receipt and purchase decision includes the financial aspect and the associated CO2 emissions. We aim to empower businesses to make informed purchase decisions by providing upfront visibility into the environmental impact. Tracking and monitoring these impacts throughout the process is vital to achieving our goal. Ultimately, we strive to help an increasing number of companies understand their climate footprint.
Jacob: How can people connect with you?
Ted: You can find us on Twitter @usebend. Additionally, you can email us at support@usebend.com. Feel free to reach out through these channels or visit our website to sign up for an account.
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