Payhawk’s ESG Journey: Progress, reality and the road ahead

Every company approaches impact differently. For us at Payhawk, the ESG journey has been one of learning, experimentation, and steadily building stronger foundations. Since 2021, we have advanced from initial assessments to concrete programmes, policies, and measurable actions.

Our 2024 Impact Report also makes one thing clear: we are not yet doing enough. The pace and scale of change required are far greater than what our current efforts deliver.

Where we began and how we’ve grown

Our ESG path began in October 2021, when we established a dedicated voluntary Impact Team. By early 2022, we completed our first B Corp Impact Assessment to establish a baseline and partnered with Plan A to measure our carbon footprint across offices, laying the groundwork for a structured environmental strategy.

In 2022, we started engaging our people via surveys: Our team wanted Payhawk to be socially and environmentally responsible. That fuelled work in diversity, equity & inclusion, and initial plans to integrate carbon data into our platform for customers.

In 2023, we scaled further: we amended our Articles of Association to embed our impact commitment, we gathered supplier and travel data for carbon calculation, and after many months, we received our first full report on emissions. We also launched the Payhawk Green feature, which enables customers to estimate the carbon impact of their card transactions at no additional cost.

In 2024, our emphasis shifted more explicitly toward people and transparency. We introduced the “Hawk Talent Thrive” learning & development programme, designed a volunteer policy, and finalised our Whistleblowing Policy (which went live in January 2025). We also launched a new health & sports‑benefits programme, reinforcing our commitment to employee well‑being. On the environmental front, we offset our Scope 1 and Scope 2 emissions for 2022 and 2023 via afforestation projects in France and Denmark (in partnership with Ecotree). In September 2024, we published our very first Impact Report.

Lessons from our ESG journey

From our experience, three key lessons stand out:

1. Start with people, not frameworks. The most effective initiatives emerged once we had a dedicated team, engaged leadership, direction, accountability and momentum.
2. Data is your foundation. Measuring impact takes time, discipline and courage, especially when you reach into multiple offices and growth is your northern star. Once the processes are reliable, reporting and decision‑making become that much more meaningful.
3. Think long‑term, act small. ESG progress rarely happens in big leaps. Instead, it is built step by step: Launching a benefit, offsetting emissions, and participating in local fundraising. Small, consistent actions build credibility and lay the groundwork for bigger change.

These lessons remind us that ESG isn’t a side project; it’s a journey that shapes who we are as a company and how we want to grow. And while we have made real steps, the truth remains: we need to move faster.

The changing ESG Landscape in the EU and why the “least we can do” is measure

The regulatory and stakeholder pressure around ESG continues to intensify, especially in Europe.

• Under the Corporate Sustainability Reporting Directive (CSRD), companies in the EU will be required to publish detailed sustainability disclosures — including their greenhouse‑gas (GHG) emissions across Scopes 1, 2 and 3

• Many companies find Scope 3 (indirect emissions in their value chain) the hardest to measure. For example, one source notes that Scope 3 emissions can account for “over  90% of a company’s total GHG emissions” in certain sectors

• In fact, only 37% of the Scope 3 emissions disclosed by European companies in 2022 were being actively addressed with decarbonisation measures

• Across Europe, the total GHG emissions have fallen ~31% between 1990 and 2022, yet projections suggest the EU is on track for a ~49% reduction by 2030 — but this falls short of its 55% target.

• Supply chains are critical: studies show “about 60% of global emissions” emanate from supply‑chain activities

What does this mean for us? It means that the bare minimum a company should be doing is measuring its carbon footprint, including Scope 3. Because without measurement, there’s no baseline, no credible target, and no real accountability.

The regulators are saying: “We will require disclosure, we will expect value‐chain emissions to be quantified.” The message is loud and clear: if you’re not measuring, you’ll fall behind not only in compliance but also in stakeholder trust and risk management.

What we did in 2024

Governance
We introduced our first Whistleblowing Policy, making it possible for employees and stakeholders to raise concerns safely, globally, and confidentially. This strengthens integrity, compliance and transparency across our operations.

People
We strengthened our employee well-being and growth programmes:

• Expanded health coverage (medical, dental, vision, mental‑health support) across multiple countries
• Offered sports, wellness and recreation access through partnerships (e.g., Multisport, ClassPass)
• Launched the “Hawk & Travel” programme: employees can work one week annually from another company office, with travel/accommodation funded by the company — fostering cross‑cultural collaboration.
• Enhanced our “Hawk Talent Thrive” Learning & Development initiative: courses, certifications, and training to help our team grow professionally and stay aligned with our mission

Community
In 2024, we increased our community engagement in our Sofia office and beyond:

• Partnered with the charity Tuk‑Tam (social, educational & career opportunities for students in underdeveloped Bulgarian regions): participated in panels at the Hive annual event and supported their scholarship fund
• Ran a charity bake sale raising 3,280 BGN for homes caring for children with specialist needs
• Donated €23,000 to Endeavor, and contributed to the Dimitar Berbatov Foundation via a charity football tournament (10,000 BGN) supporting youth education/talent development.

Environment
Achieved a 23.9% reduction in total greenhouse‑gas emissions from 2023 to 2024 (from approx. 4,227 tCO₂e to ~3,220 tCO₂e).

• Transitioned from a purely spend‑based emissions calculation to a hybrid approach integrating “Bring Your Own Emissions” (BYOE) through our partnership with Lune, improving the accuracy and alignment of our supplier‑level data
• Focused on operational interventions: cost‑optimisation in procurement and operations delivered ~32.6% reduction in emissions from purchased goods and services
• Offset our Scope 1 and Scope 2 emissions for 2022 and 2023 via certified afforestation projects (France & Denmark) in partnership with Ecotree.

Customers
For our customers, we continued to push forward. In 2022, we partnered with Lune to offer carbon estimations based on card spend, responding to a survey that showed 65% of our customers wanted this data. By 2023, we launched the carbon‑estimation feature, and today, hundreds of accounts actively use it free of charge. This strong engagement shows demand is real — and growing.

Where we must do better

We must be honest: while the steps above are significant, they are not sufficient. Key areas needing more focus:

• Scope 3 emissions remain deeply challenging. The indirect emissions in our value chain and “beyond our walls” still represent the majority of our carbon impact, yet measurement is incomplete, and the substitution of high-emission elements remains limited.
• Community engagement and broader civic impact efforts have been deprioritised this year in order to focus resources elsewhere. That’s a gap.
• Offsetting Scope 1 and Scope 2 is positive, but true decarbonisation means reducing emissions, not just offsetting them. We must shift from “removal” to “avoidance”.
• As regulations tighten, e.g., CSRD, ESRS, and the upcoming Corporate Sustainability Due Diligence Directive (CSDDD), the data intensity and stakeholder scrutiny will increase. We must scale our reporting and assurance capabilities so we’re not scrambling but prepared.

In short: We’re moving in the right direction, but the speed, depth and systemic change required are far greater than what we’ve achieved to date.

A key message for our customers and prospects: You can too

One of the most exciting opportunities we want to highlight is that companies using Payhawk can perform a similar emissions analysis via Payhawk Green, especially for the hardest‑to‑measure category: Scope 3. Because through Payhawk:

• For all accounts, Lune is included free of charge for carbon estimation based on card spend.
• If you run all your spend through your Payhawk card, you gain access to spend data that can inform emissions estimation — helping you, even for smaller companies and all industries, get a clear view of your value-chain footprint.
• This brings Scope 3 (often the toughest part of carbon accounting) within reach: by mapping card spend to supplier emissions, you initiate a process of understanding the full footprint of your operations, not just the part within your own walls.
• With that baseline, you can not only report (as regulation demands) but also identify hotspots, engage suppliers, optimise spend and plan for reductions.

In the emerging regulatory environment in Europe, where disclosures will soon require value‑chain emissions and detailed data, this capability is no longer a “nice‑to‑have”. It’s fast becoming a business imperative.

Goals for 2025 and beyond

Looking ahead to 2025, we’re committed to:

1. Strengthening employee satisfaction and retention, with new feedback processes and tools so our people feel heard, empowered and aligned.
2. Expanding our compliance culture, implementing whistleblowing policies across more group entities and preparing for evolving EU/UK regulatory frameworks.
3. For customers, the possibility of including additional types of spend beyond cards gives businesses a more comprehensive view of their environmental footprint.
4. Deepening supplier engagement, audit trails and data governance to meet future disclosure demands under CSRD, ESRS and CSDDD.

Final thoughts

We are proud of the progress we have made, yet we’re acutely aware that it is not nearly enough. The regulatory landscape is changing rapidly, stakeholder and investor expectations are climbing, and the climate clock is ticking. The least we, and every business, can do is measure our carbon footprint. Because without measurement, there is no baseline, no transparency, no accountability, and no meaningful change.

For us at Payhawk, measurement is the foundation. With that foundation, we build strategy. With strategy, we take action. With actio,n we deliver impact. But the journey continues. We are committed to moving faster, going deeper, and raising our ambition.

We invite our customers, partners, and ecosystem to join us on this journey, as the challenge is collective, the stakes are high, and the reward is a more sustainable future.

Read our complete 2024 Impact Report.