About episode
We know that motivating homeowners to invest in energy efficiency retrofits and home upgrades is hard. Energy efficiency might not sound glamorous, but across the US, retrofits can actually cut our residential energy usage in half.
That’s why when I met Scope Zero CEO Lizzy Kolar, I was excited to learn about her company’s novel way of motivating home upgrades. What Lizzy and her co-founder realized is that our homes are now workplaces.
And, with employers having to account for emissions for remote workers, they now have an incentive to help homeowners invest in upgrades. Enter the Carbon Savings Account (CSA). Modeled after FSAs and HSAs, the CSA can scale quickly and help millions of homeowners across the US to begin investing in upgrades they’ve been putiing off.
In this episode, we hear about Lizzy’s background, the founding story of Scope Zero, the problems they’re trying to solve, the best home upgrade investments, how the home upgrade ecosystem has been evolving, and much more. This is a fast and to-the-point episode. Hope you enjoy it.
In today’s episode, we cover:
- [03:02] Lizzy’s background, what sparked her interest in climate & founding Scope Zero
- [05:50] Key needs that Scope Zero is addressing
- [07:17] The HSA model & how it works
- [08:24] How the HSA model translates to climate action
- [09:20] How someone might use the money they put in a Scope Zero account
- [10:15] What holds homeowners back from making investments
- [11:40] Evidence that consumers will invest in CSAs
- [12:23] The benefits of government incentives – Inflation Reduction Act
- [12:53] What home upgrades should be prioritized
- [14:43] The benefits of a Scope Zero CSA for employers
- [16:34] ROI for employers
- [17:53] CSAs in practice & the response
- [18:27] How far along is Scope Zero & the growth plan
- [19:44] Scope Zero’s total addressable market & opportunity
- [20:27] Quantifying impact in terms of emissions reduced & environmental benefits
- [21:06] Tracking the impact of CSAs using dashboards & data
- [21:44] Customers’ access to a partner vendor network
- [22:14] How the ecosystem surrounding home upgrades is evolving
- [23:08] How Scope Zero is financed & raising funding
- [23:47] Opportunities for aligning interests & motivating change
Lizzy’s background, what sparked her interest in climate & founding Scope Zero
Lizzy begins by explaining Scope Zero’s mission, centered around the Carbon Savings Account (CSA), which serves as both a Financial Wellness Benefit for employees and a corporate sustainability strategy for employers. She traces the evolution of the CSA concept through three significant periods in her journey into climate activism. Firstly, growing up in West Virginia, she witnessed the paradox of a state heavily reliant on coal yet struggling with poverty and energy affordability. Secondly, her experience studying mechanical engineering at West Virginia University and working at Ammar ESCO highlighted the widespread issue of inaccessible home efficiency upgrades across the US. Lastly, during her graduate studies at Stanford University, Lizzy collaborated with a former VP of sustainability at Nike, sparking the idea of aligning corporate and individual incentives to drive home efficiency upgrades. Together with her co-founder, Kaitlin Highstreet, Lizzy integrated these insights to establish Scope Zero and develop the CSA.
Key needs that Scope Zero is addressing
Lizzy elaborates on Scope Zero’s core objectives, emphasizing the organization’s efforts to enhance the affordability and accessibility of home technology and personal transportation upgrades. Through the CSA, which operates within a familiar Employee Benefit framework, both employees and employers contribute funds that employees can utilize for eligible upgrades aimed at reducing utility bills, fuel expenses, and carbon emissions. These upgrades, deemed CSA eligible, have the potential to save the average US household over $5,000 annually. Lizzy underscores how the CSA addresses multiple challenges for employees, providing financial assistance for upgrades that ultimately reduce living costs, particularly crucial amid tightened household budgets. Additionally, Scope Zero’s tailored recommendation engine facilitates the upgrade process by directing employees towards products and vendors tailored to their specific home needs.
How someone might use the money they put in a Scope Zero account
There are a variety of upgrades that individuals can invest in using funds from their CSA. Categorized into six main groups, the first set focuses on efficiency and electrification, encompassing upgrades for HVAC systems, water fixtures, lighting, plug loads, and appliances. These upgrades range from ENERGY STAR-rated refrigerators to low-flow showerheads, LEDs, heat pumps, and insulation. The remaining two categories cover clean energy options and transportation. Under clean energy, CSA funds can be allocated for home solar panel installation and storage solutions, while transportation upgrades include electric vehicles, commuter bikes, and public transportation passes.
The benefits of a Scope Zero CSA for employers
Lizzy highlights the dual benefits of the Carbon Savings Account (CSA) for employers, emphasizing its role as both an employee benefit and a corporate sustainability strategy. From the perspective of employee benefits, the CSA serves as a valuable tool for companies seeking to distinguish their benefits package in order to attract and retain top talent. HR leaders find that integrating the CSA into their benefits structure can streamline expenses, offering employees greater flexibility in utilizing allocated funds previously earmarked for commuter benefits, work-from-home stipends, or electric vehicle reimbursements. This flexibility renders the CSA one of the most inclusive benefits, promoting immediate and enduring financial wellness for all employees. Additionally, as a corporate sustainability strategy, the CSA platform facilitates the measurement, reduction, and reporting of a company’s scope three emissions arising from work-from-home and commuting activities, a task often arduous to undertake independently. By directly reducing scope three emissions, the CSA reduces the need for companies to invest in carbon offset credits to meet their climate objectives, thereby advancing corporate sustainability goals cost-effectively.
Opportunities for aligning interests & motivating change
Lizzy underscores the inclusive nature of the CSA, emphasizing its ability to deliver significant value to both companies and employees, promoting financial and environmental well-being. With the CSA serving as a comprehensive resource for home technology and transportation upgrades, there’s ample opportunity to extend its impact beyond the realm of Employee Benefits. Collaboration with landlords, utility companies, residential energy auditors, and financial institutions presents avenues for further expansion, aimed at enhancing personal financial health and environmental sustainability. Lizzy advocates for individual action towards a greener future, highlighting the CSA’s capacity to mobilize collective efforts towards impactful change. She stresses the importance of educating individuals on the most effective upgrades and behavioral changes to reduce personal carbon footprints and improve financial outcomes, envisioning a collaborative approach towards a more sustainable future for all.
Resources Mentioned
Connect with Lizzy Kolar
- Connect with Lizzy on LinkedIn
Connect with Jason Rissman
Keep up with Invested In Climate
- Sign up for our Newsletter
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