Q&A with Kendra Tolley on All Things Athian
Kendra Tolley, our chief product officer, answers some of the most frequently asked questions about how Athian works, the benefits of insetting and what’s ahead for voluntary carbon credit markets.
Q: How would you describe Athian's model? Is it a marketplace?
While we often describe ourselves as a marketplace to help people understand what we do, Athian differs significantly from traditional carbon marketplaces based on offsets. We are focused on carbon claims within specific supply chains, or carbon insets, which introduce important nuances in how sustainability assets are created, traded and valued.
We're building a collaborative ecosystem – bringing together producers, processors and downstream companies striving to meet their Scope 3 emission targets. Our mission is to unite the entire value chain around real, measurable impact with Athian facilitating the process from beginning to end.
Q: How do you help the supply chain meet Scope 3 goals?
Think of carbon offsets like standardized, tradeable commodities – similar to stocks. Insets, however, are fundamentally different. Although they also require scientific validation and proper accounting, insets must occur within a company’s own supply chain to contribute toward a company’s Scope 3 emission targets. Our platform enables companies to source verified, traceable sustainability improvements directly from their supply chains. We facilitate third-party verification using accredited, independent auditing firms.
Q: Why focus on insetting rather than offsetting? How does that benefit dairy farmers?
Insetting creates value for both producers and the companies they supply. Many food companies didn't initially realize that most of their emissions occurred at the farm level. Traditional offsets fall short in helping them meet science-based targets, but insets do because they reflect improvements within their own supply chains.
Our viewpoint is that these companies can't achieve their goals without incentivizing or finding ways to engage producers in emission-reducing activities. That’s what Athian helps them do. From connecting them with sustainability-minded producers in their supply shed to monitoring and verifying outcomes to funneling the financial reward back to the producer, our platform credibly simplifies this process for our customers.
For farmers, insetting means they keep the claim of their emission reductions (counted as Scope 1), receive financial value for those reductions and gain recognition for their sustainability practices. It's a win-win across the supply chain.
Q: Why is it important to identify a buyer before a producer begins a sustainability practice?
It ensures there's a financial incentive for the producer. Companies have specific emission targets and want to invest in certain practices within their supply shed. We align that demand with producers who are willing to implement those changes and are part of the purchasing company’s supply chain. We make sure the financial incentive exists before we ask producers to engage in any activity so they aren’t spending time and money without knowing if there will be a return.
Q: Roughly how much can a dairy farmer expect to earn in the carbon market?
Traditional offset markets return about 40% of a carbon credit's value to the producer because there are a lot of intermediaries participating in the generation of that carbon offset. On our platform, 75% of the value goes back to the producer. We price credits so the producer earns at least a 20% return on their investment, once they clear their costs.
Q: Are there opportunities for operations of all sizes?
In short, yes! We're a technology company and the best way to scale this opportunity to the greatest number of producers, regardless of size, is through software. We spend a lot of time figuring out how to make it as easy as possible for all types of producers to engage – no matter the herd size. We want to take the work out of it and democratize the opportunity. The platform is designed to be simple for those who aren't super tech-savvy while still supporting the most sophisticated farms as well.
Q: How do you expect the price and demand for dairy carbon credits to change over time?
We expect both the price and opportunities to increase. If you've seen the recent guidance from the Science Based Targets initiative (SBTi), you'll know there is a strong emphasis on Scope 3 mitigation. Companies with science-based targets will need to address the impact of products they bring to market by focusing on their supply chains. We believe insets will be more valuable to buyers – not just because they help meet sustainability goals but because it creates the biggest opportunity for producers and the resilience of the supply chain.
Q: How many dairy farmers are already earning credits in the carbon market?
It's still a very small percentage. Larger farms (with more than 5,000 head) are the most active, with about 20%–30% participation, mostly due to on-farm digesters. There's a huge opportunity for farms with smaller herd sizes or those without digesters to get involved.
In 2025, we expect to compensate U.S. dairy producers for 400,000-to-500,000 metric tons of verified emission reductions achieved through their on-farm practices.
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