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Boston Consulting Group (BCG) announced today a strategic agreement with 1PointFive, the Direct Air Capture […]]

BCG Signs Carbon Removal and Consulting Agreement with 1PointFive – ESG Today

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BCG Signs Carbon Removal and Consulting Agreement with 1PointFive

Mark Segal

January 11, 2024

Boston Consulting Group (BCG) announced today a strategic agreement with 1PointFive, the Direct Air Capture (DAC)-focused subsidiary of energy giant Occidental (Oxy), including the purchase of 21,000 metric tons of carbon dioxide removal (CDR) credits over three years.

In addition to the carbon removal purchases, BCG will collaborate with 1PointFive through consulting services, including on the development of business processes supporting DAC CDR credits.

DAC technology, listed by the IEA as a key carbon removal option in the transition to a net-zero energy system, extracts CO2 directly from the atmosphere for use as a raw material or permanently removed when combined with storage. According to the landmark Intergovernmental Panel on Climate Change (IPCC) climate change mitigation study released last year, scenarios that limit warming to 1.5°C include carbon dioxide removal methods scaling to billions of tons of removal annually over the coming decades, with DAC positioned to potentially account for a significant portion of the total.

The CDR credits under the agreement will be enabled by STRATOS, currently under construction by 1PointFIve in Ector County Texas, which it expects to be the largest DAC facility in the world to date, designed to capture 500,000 tonnes of CO2 per year when fully operational.

Michael Avery, President and General Manager of 1PointFive, said:

“We are pleased to enter into this strategic agreement with BCG. It builds on our existing partnership and reflects our shared commitment to the climate and the importance of DAC as an industrial-scale, durable, and verifiable carbon removal solution. As one of the global leaders in consulting, this agreement reinforces DAC’s potential and demonstrates how non-industrial companies can meet their net zero goals and sustainability initiatives.”

The agreement marks the latest in a series of DAC purchases for BCG, including a 5-year, 40,000 ton deal announced last year with DAC company CarbonCapture, and an agreement in December with DAC company Climeworks for 80,000 tons of CO2 removal over 15 years.

David Webb, BCG’s Chief Sustainability Officer, said:

“With this strategic agreement, BCG reaffirms its commitment to be an early adopter and to support the most promising CDR technologies to capture and store carbon durably. Over the past year, BCG has already supported 1PointFive in designing the required IT architecture needed for the Measurement Reporting and Verification (MRV) of STRATOS. 1PointFive has become one of the leaders in the durable removals ecosystem and is a great fit for our DAC portfolio.”

Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.

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