Key takeaways from The Payhawk Impact Report 2023

Impact reports have become vital tools for businesses in today’s world, where consumers, investors, and employees expect companies to go beyond profit and make a positive societal impact. These reports provide transparency and accountability, allowing companies to measure and communicate their Environmental, Social, and Governance (ESG) efforts.

Why impact reports matter: Creating value for stakeholders

Now, more than ever, Impact reports serve as a blueprint for how businesses can create value not just for shareholders but for all stakeholders — including employees, communities, customers, and the environment.

For investors, an impact report signals that a company is thinking long-term and balancing profitability with sustainability, which increasingly aligns with modern investment criteria. For employees, it demonstrates that their work contributes to a company with a higher purpose, fostering greater engagement and satisfaction.

Meanwhile, customers are more likely to trust and stay loyal to companies that align with their personal values, especially those concerning social responsibility and environmental sustainability. Finally, communities benefit from the tangible actions companies take to make a difference locally or globally.

In this light, impact reports are not just a reflection of past achievements — they are a roadmap for future improvements. Now, let’s dive into the key takeaways from our first Impact Report at Payhawk, which highlights our journey toward becoming a more socially responsible and sustainable business.

A formal commitment to social responsibility

One of the most significant achievements of 2023 was the amendment of our Articles of Association to include a "mission-lock" clause. This legal provision ensures that Payhawk is committed to its social and ethical goals alongside profitability. But why does this matter?

For shareholders and investors, this guarantees that the company will always balance financial performance with its mission to make a positive impact. For employees and customers, it serves as a formal pledge that Payhawk is here to contribute to the greater good, not just maximize returns. In a world where consumers and talent alike are gravitating toward companies with purpose, this formal commitment strengthens our long-term value and appeal.

This amendment reflects our desire to align every part of the business with our core mission, ensuring that our values remain at the forefront of decision-making, even as we scale. It also positions us for future B Corp Certification, a rigorous assessment of social and environmental performance, transparency, and accountability.

Payhawk Green: Leading the charge on carbon emission reporting

One of our proudest achievements in 2023 was the launch of Payhawk Green, a feature designed to help users estimate the carbon emissions from their card transactions. This tool, launched in September 2023, simplifies the measurement of Scope 3 emissions — the indirect emissions that result from the activities of an organization, especially its supply chain. Scope 3 emissions are notoriously difficult to track, but they represent a substantial portion of a company’s overall carbon footprint.

Businesses using Payhawk Green can now access valuable insights into their own carbon emissions, helping them achieve their sustainability goals. This feature not only adds value to our product but also aligns with customers’ growing demand for solutions that support environmental responsibility.

We also partnered with Plan A, a carbon management platform, to measure our carbon footprint across all offices in 2022 and 2023. This collaboration is a vital part of our sustainability strategy, as it helps us understand and manage our environmental impact more effectively. As we continue to develop this feature, we aim to expand its capabilities to track additional types of spending, such as mileage and other indirect emissions.

Putting employees first: Our commitment to well-being and growth

Employees are the backbone of any organization, and at Payhawk, we really recognize the value they bring to the table. That’s why, in 2023, we focused heavily on enhancing employee satisfaction, engagement, and development. From increasing support for eco-friendly commuting to offering clear career paths, our goal has been to create an environment where employees feel valued and motivated.

Key initiatives for employees in 2023

Commuting allowance: Since January 1, 2023, all Payhawk employees have been eligible for a monthly commuting allowance. This initiative supports employees in covering their travel costs while encouraging more sustainable commuting options and reflects our dedication to supporting employees in their daily lives while promoting eco-friendly choices.

Management training: We also invested in leadership development by providing management training across departments. Empowering our teams with the right leadership skills ensures that our managers are effective, empathetic, and capable of fostering a productive work environment.

Career development: In 2023, we rolled out clear career paths across all departments. We understand that providing transparency about growth opportunities within the company is crucial for employee retention and motivation and we’re committed to helping our employees achieve their professional goals while contributing to Payhawk’s success.

Continuing our community impact

At Payhawk, we believe that businesses have a responsibility to give back to the communities they operate in. In 2023, we actively participated in numerous initiatives designed to improve the well-being of people in our local community in our HQ, Sofia.

Key community actions in 2023 include

Scholarship funds: In collaboration with the Dimitar Berbatov Foundation and Tuk-Tam, we supported scholarships aimed at promoting education and talent development in Bulgaria. These scholarships are designed to provide opportunities for underprivileged youth to pursue higher education, thus fostering the next generation of leaders.

Charity events: We hosted several charity events throughout the year, such as a bake sale that raised over 4,000 BGN for elderly care and a charity football tournament that raised 10,000 BGN for youth education. Our participation in these events demonstrates our commitment to creating meaningful change within our community.

American University in Bulgaria: Our CEO, Hristo Borisov, was a keynote speaker at the AUBG StartUp conference, sharing insights on entrepreneurship and innovation. Additionally, Payhawk provided $10,000 in support for the Elevate start-up accelerator and sponsored a scholarship for a first-year student.

By actively participating in educational and charitable initiatives, we contribute to the social and economic development of the regions where we operate, strengthen our relationship with local communities, and create long-lasting positive impacts.

Strengthening governance and environmental strategies

Governance is a cornerstone of our ESG strategy. In 2023, we took steps to embed sustainability into our corporate governance practices, ensuring that our values guide every decision we make. One of the key developments was the implementation of the mission-lock clause, which safeguards our social and ethical goals even as we grow and attract more investors.

Environmental efforts

Carbon emissions tracking: In 2023, we worked closely with Plan A to continue gathering data on our carbon emissions. While Scope 1 and 2 emissions (direct emissions from owned or controlled sources) are relatively easier to track, Scope 3 emissions (indirect emissions from the entire value chain) require extensive data collection. Despite the challenges, we successfully gathered and analyzed emissions data for 2022 and 2023.

Offsetting emissions: In 2024, we committed to offsetting our Scope 1 and 2 emissions, striving toward our goal of reducing our environmental impact. Additionally, we streamlined our data-gathering processes, making it easier to report and manage our emissions in the future. Look out for more info in our 2024 Impact Report (coming next year).

Our efforts to track and reduce carbon emissions directly benefit our customers, many of whom are also working to reduce their environmental impact. Offering features like Payhawk Green helps them achieve their sustainability goals.

Final thoughts

As I reflect on the progress we've made in 2023, I am incredibly proud of the steps Payhawk has taken toward becoming a more socially responsible company. However, I want to be clear: this is just the beginning. While we’ve achieved significant milestones, we recognize that it’s not enough. The road to sustainability and meaningful impact is long, and we still have a lot to learn and improve.

Each year brings new challenges and opportunities, and we’re committed to evolving. Our focus for the future is clear — we’ll continue to push ourselves to do better, whether it’s in reducing our environmental footprint, improving our employee experience, or giving back to the communities we serve. We’re not perfect, but we’re taking deliberate, thoughtful steps to make Payhawk a force for good.

Read the 2023 Impact Report to find out more.