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Scope 3  ·  4.2.2

Customer Capitalization

Structuring and providing financing solutions that help customers fund the capital expenditure required to adopt low-carbon products, technologies, and services. Companies that offer or facilitate financing remove a critical barrier — accelerating their own Scope 3 Category 11 reductions while creating new revenue streams and deepening customer relationships.

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Self-Assessment

Select where your organization currently operates and where you want to get to. There is no obligation to reach "Leading Org." — choose the target that is right for your business context and investment capacity.

📍 Current Level
🎯 Target Level
Select your current and target levels above to map your assessment on this initiative.
Fundamental
Market Standard
Above Average
Leading Org.

Technology

  • Standard commercial financing (third-party lenders) referenced in customer proposals
  • Leasing options offered alongside product purchase for capital-constrained customers

Process

  • Identifying customer segments where CAPEX is a primary barrier to low-carbon adoption
  • Training sales teams to navigate customer financing conversations and connect to third-party lenders
  • Documenting available public incentives (IRA credits, utility rebates) customers can access to reduce net cost

Financing

  • Internal sales tools summarizing third-party financing options by product and customer segment
  • Public incentive guide developed and shared proactively with customers during sales process

Technology

  • Fundamental Technologies +
  • Vendor financing program offering installment payment plans or equipment leases through captive or partner lender
  • Customer-facing ROI and payback calculator demonstrating economic case for low-carbon product adoption

Process

  • Partnering with green banks, CDFIs, and ESG-focused lenders to provide preferred financing to customers
  • Integrating IRA tax credit monetization advice into customer proposals for eligible products
  • Tracking customer adoption rates by financing type to optimize program structure

Financing

  • Captive finance subsidiary or preferred lender partnership established to streamline customer financing
  • Sustainability-linked loan terms offered to customers who commit to verified emissions reduction milestones

Technology

  • Market Standard Technologies +
  • As-a-service (XaaS) commercial model converting product CAPEX to operating subscription for customers
  • Power purchase agreement or energy services agreement structure for energy-related products

Process

  • Structuring outcome-based contracts where customer payments are tied to verified performance and savings
  • Developing standardized project documentation packages to accelerate customer access to green financing
  • Aggregating customer projects into financing portfolios for institutional capital access at lower cost

Financing

  • Green bond issuance backed by customer financing receivables from low-carbon product deployments
  • PACE, C-PACE, and green lease structures offered to commercial real estate customers for building upgrades

Technology

  • Above Average Technologies +
  • Fully integrated customer decarbonization financing platform: assessment, project design, financing, and M&V in one offering
  • Portfolio-level customer financing aggregated for institutional green infrastructure investors

Process

  • Publishing verified Scope 3 Category 11 reductions enabled by customer financing programs
  • Partnering with multilateral development banks to extend low-carbon financing to customers in emerging markets
  • Advocating for policy frameworks that support outcome-based and sustainability-linked customer financing at scale

Financing

  • Scope 3 reductions from financed customer projects monetized via carbon markets or Article 6 agreements
  • Customer decarbonization financing portfolio recognized as AAA-rated green infrastructure asset class

Related Pathways

← All Pathways 3.2.1 Operationalization 3.2.3 Design for Sustainability 3.2.4 Resource Support