We are not an NGO

Why xolutionist cant afford to run as a non-governmental organization

11/7/20232 min read

We face a pressing challenge: reversing global warming within a limited timeframe. To accomplish this, we must rapidly expand. Our success hinges on a robust business model prioritizing impact. When the founder, director, investors, and consultant joined forces to establish Xolutionist, they distilled the essence of the climate crisis into a singular question:

“How can we remove as much CO2e from the atmosphere as swiftly as possible?”

This question guides every decision at Xolutionist, influencing product design, marketing strategy, and our overall business approach. Opting for a commercial company structure wasn't an immediate choice. Initially considering a nonprofit, we recognized the need for a focus on speed, scale, and efficiency in answering our guiding question. Drawing on experience from both NGOs and for-profit startups, we understood that a commercial approach would better position us for success.

Speed, Scale, and Efficiency:

With a limited timeframe to address the climate crisis, incorporating as a commercial company grants us the flexibility to take entrepreneurial risks, iterate quickly, and access the growth capital necessary for scaling from hundreds to millions. This structure also enables us to attract top talent to tackle the monumental challenge. Importantly, building Xolutionist as a professional service compels us to compete based on performance — the value we deliver for our members, measured in CO2e reduction.

Balancing Purpose and Business:

Xolutionist differs from both NGOs and typical for-profit companies; it follows a purpose-led business strategy. Our primary stakeholder is the environment, not investors, with our key performance indicator centered on CO2e, not dollars. Concrete principles underpin this commitment:

1. No Profit from Offsets:

We refrain from taking profits from offset subscriptions. Surpluses are immediately reinvested to create more impact, whether through community building or the development of enhanced carbon reduction tools. Investor returns are generated through additional business services.

2. Transparency:

Success at Xolutionist is measured by the impact we create and how effectively we utilize member contributions. Regular reports detail the funds received, where they went, and the exact CO2e reduction achieved. Our full transparency statement is available [here](link).

3. Accountability:

Aligning business and purpose necessitates more than good intentions. We've established a legal and structural framework, embedding Xolutionist’s social purpose in our legally binding articles of association and registering as a certified B-Corp.

We take pride in the company and community we're building, inspired by the tremendous support from thousands of Xolutionists who contribute to our journey. Your trust motivates us to improve daily as we learn and develop Xolutionist together with you!