Bain & Company and Oxy’s 1PointFive announced a new agreement for direct air capture carbon removal credits. Under the deal, Bain & Company will purchase 9,000 metric tons of carbon dioxide removal (CDR) credits over three years. The credits will come from direct air capture (DAC) technology developed by 1PointFive at its large STRATOS facility in Texas.
This deal marks an important step in how companies address climate change by removing carbon dioxide (CO₂) directly from the air. It also highlights the increasing importance of advanced technologies that pull CO₂ from the air and store it permanently.
How DAC Removes CO₂ from the Atmosphere
Direct Air Capture is a type of technology that pulls CO₂ out of the atmosphere. A machine uses fans and chemical processes to separate CO₂ from the air. Once CO₂ is removed, it is compressed and stored so that it will not return to the atmosphere. This process is a form of carbon dioxide removal that targets emissions already in the air, rather than preventing new emissions at the source.
The CO₂ captured by DAC can be stored deep underground in rock formations. This process is called geologic sequestration. It is one of the most secure ways to keep CO₂ out of the atmosphere for long periods of time.
Direct air capture differs from other carbon strategies like energy efficiency, renewable energy, or planting trees. DAC can take out carbon that’s already in the air. The technology focuses on removing existing carbon, unlike other methods that reduce future emissions or naturally capture some carbon. This helps address what scientists call “hard-to-abate” emissions.
Inside the Bain & Company Carbon Removal Agreement
Bain & Company has taken a significant step in its climate strategy through a new agreement with 1PointFive. This is Bain’s first purchase of carbon removal credits from direct air capture technology, which shows its increasing commitment to innovative carbon solutions.
Key points of the agreement include:
- Total Credits: 9,000 metric tons of CO₂ to be removed.
- Timeframe: Delivered over three years.
- First DAC Purchase: Bain’s initial engagement with direct air capture technology for carbon removal.
- Climate Strategy Alignment: Supports Bain’s goal to maintain a net-negative carbon impact each year.
- Emissions Offset Visualization: The 9,000 metric tons of CO₂ are equivalent to the emissions from about 10,000 long-haul round-trip flights for one economy-class passenger.
Sam Israelit, Bain’s Chief Sustainability Officer, said:
“We are proud to partner with 1PointFive and add them to our portfolio of engineered carbon removal technologies. Their track record for developing DAC technology coupled with their deep understanding of what it takes to deliver large-scale infrastructure projects uniquely positions them to be a leader in this emerging segment.”
STRATOS and the Scale-Up of Engineered Carbon Removal
1PointFive is a carbon capture, utilization, and sequestration (CCUS) company. It is a subsidiary of Occidental Petroleum (Oxy). 1PointFive aims to scale direct air capture tech. This will help remove CO₂ from the atmosphere at commercial levels.
The carbon credits that Bain will purchase are produced by the STRATOS facility. This plant is a large DAC installation in Ector County, Texas. Once fully operational, STRATOS is expected to be one of the largest DAC facilities in the world. It is designed to remove up to 500,000 metric tons of CO₂ per year when fully running.
STRATOS is still in a start-up phase. It hasn’t started full commercial operations yet. However, it’s moving through initial testing and ramp-up activities.
The CO₂ captured at the DAC facility will be stored underground through geologic sequestration. This means the carbon will be injected into deep rock formations where it stays permanently.
Why Carbon Removal Credits Are Gaining Corporate Attention
Carbon removal credits are becoming more important for businesses. Each credit shows that one metric ton of CO₂ has been removed from the air and stored safely. Companies can buy these credits to offset emissions they cannot reduce through normal operations.
Key reasons why carbon removal credits are important for companies:
- Offset emissions: Helps companies balance emissions they cannot cut directly.
- Supports climate goals: Companies can invest in removal technologies while aiming for net-zero or net-negative targets.
- Long-term impact: Credits help firms create lasting, innovative ways to cut atmospheric carbon. Direct air capture is one such technology that grows in use as firms seek durable solutions.
CDR purchases are growing by 750% from 2022 to 2023, and 2024 volumes are exceeding prior years. Analysts project the CDR market could expand from about $3.4 billion in 2024 to $25 billion by 2029.
Durable engineered CDR credits, including DAC, alone may generate over $14 billion by 2035. By 2030, annual demand for durable CDR credits could reach up to 100 million tonnes of CO₂ because of corporate climate targets and emerging policies.
By buying removal credits, companies can manage their carbon footprint while investing in climate technologies that have a real, measurable effect on the atmosphere.
What This Means for Bain & Company’s Climate Goals
For Bain & Company, this agreement aligns with its established climate commitments: net zero across value chains by 2050. Bain has pledged to maintain a net-negative carbon footprint annually.
To achieve this, it aims to reduce emissions and invest in credible carbon removal solutions. The 9,000 metric tons of direct air capture credits will help offset Bain’s leftover operational emissions. These emissions are what remain after all possible reductions.
The company has invested in high-integrity carbon removal credits before. They have supported over 1.1 million metric tons of removal credits from different technologies in the last five years. This indicates Bain’s long-term engagement with carbon removal beyond this new agreement.
By adding DAC-enabled credits from STRATOS, Bain aligns its portfolio with advanced engineered removal methods. These methods are often seen as more durable and reliable in the long run than some natural removal methods.
A Signal for the Carbon Removal Market
The market for carbon removal and carbon credits has grown rapidly. Companies from many industries are purchasing removal credits as part of climate strategies.
In 2023 and 2025, 1PointFive made deals with big companies to buy carbon removal credits. These include deals with major firms such as Amazon and JPMorgan Chase for 250,000 and 50,000 metric tons of CDR credits, respectively. These deals show the rising global interest in DAC-enabled carbon removal.
Carbon removal credits also play a role in voluntary carbon markets. These markets allow companies to buy credits to offset emissions beyond regulatory requirements. As more firms commit to climate goals, demand for high-quality removal credits grows.
The Future of Direct Air Capture and Carbon Removal Credits
The agreement between 1PointFive and Bain & Company reflects a broader trend in climate action. More businesses are using tech-driven carbon removal in their climate plans. As DAC projects like STRATOS scale up, removal credits may become more widely available and standardized.
As companies build portfolios of carbon removal credits, technologies like DAC may play a larger role in global efforts to limit climate change. Experts believe that removing CO₂ from the atmosphere will be necessary alongside rapid emission cuts to meet climate goals.
A boom in DAC credit agreements like the 1PointFive and Bain & Company’s deal may reflect this emerging reality. As the world faces the challenge of reducing atmospheric CO₂ levels, partnerships like this show how the private sector can contribute to climate mitigation through innovative technology and long-term strategies.
The post Bain & Company Inks First Direct Air Capture Carbon Removal Deal With Oxy’s 1PointFive appeared first on Carbon Credits.
Most businesses that decide to act on their net-zero targets reach the same point of friction. Buying carbon credits has meant tracking down brokers, sitting through sales calls, and requesting a quote just to learn a price, sometimes with limited proof of what you are buying.
The earnings calls that quietly reframed climate from sustainability question to operating risk.
Three earnings calls in the last 18 months tell the story without any help from a press release.
Hershey, May 2024: cocoa price exposure compresses margin, and the company attributes part of the cost shock to West African weather. Olam, July 2024: coffee climate exposure quantified in the annual report. JBS, January 2025: supply chain climate disclosures expanded materially in response to investor pressure and regulatory expectation. None of these companies issued the announcement as climate news. They issued it as financial news. The climate-linked supply chain risk did not arrive with a sustainability framing; it arrived as a P&L line.
You are probably reading this article because you suspect the same thing is happening to your business. This piece walks through what is showing up on which earnings calls, how procurement and finance leaders are quantifying the exposure, and what serious corporates are doing about it before the regulator asks.
Where climate risk has already appeared in earnings
The pattern is consistent across resource-intensive sectors. A weather event compresses supply, the price spikes, the cost flows through the income statement, and the analyst on the call asks whether the event is anomalous or structural. Increasingly, the honest answer is the second one.
Cocoa is the cleanest example. The 2023 to 2024 West African harvest fell sharply on the back of erratic rainfall and disease. Cocoa futures more than tripled. Companies with concentrated West African sourcing absorbed the cost; companies with diversified sourcing absorbed less. The exposure was not climate as ESG topic. It was climate as cost of goods.
Coffee follows the same pattern. Brazilian and Vietnamese harvests have moved on weather more sharply across the last several seasons. Roasters with long-tenor supplier relationships and origin diversification have managed the volatility; roasters with spot-market exposure have not. Wheat, sugar, palm oil, beef: the same dynamic in different commodities, a pattern the IPCC AR6 Working Group II report projects will intensify across agricultural systems through mid-century.
What this means: climate risk is no longer a footnote in the 10-K. It is a line item the CFO has to explain on the call.
The three commodity exposures that hit margin first
For most companies with material Scope 3 exposure, three exposures dominate the near-term P&L risk.
- Concentrated single-origin sourcing in a climate-vulnerable region. If your tier-one supply for any material commodity sits in one geography, you have a concentration risk that climate amplifies. Diversification across origins is the obvious hedge, but it takes years to build and requires relationships you cannot acquire by tender.
- Supplier financial fragility under climate stress. Smallholder farmers, who supply a large share of the global cocoa, coffee, and palm oil market, do not carry the balance sheets to absorb yield shocks. When yields collapse, they exit. When they exit, your supply base shrinks, and the surviving suppliers raise prices. The risk is structural, not cyclical.
- Logistics and storage exposure to extreme weather. Hurricane disruptions to Gulf shipping, drought-driven Panama Canal restrictions, flooding in European inland waterways: each of these has moved input costs in the last three years, a pattern documented in Munich Re’s natural catastrophe data. The exposure shows up as a one-quarter event in the financial press but accumulates over time on the cost line.
TCFD and ISSB disclosure changes
The disclosure architecture has now caught up with the risk. The Task Force on Climate-related Financial Disclosures, whose recommendations are now embedded in the ISSB’s IFRS S2 climate standard, requires companies to disclose climate-related risks across physical and transition categories, with quantification where possible.
For physical risk specifically (the climate-linked supply chain risk you are reading about), the disclosure must address both acute exposures (extreme weather events) and chronic exposures (gradual changes in temperature, precipitation, and growing seasons). The disclosure must address the time horizon over which the risk is material, the parts of the value chain exposed, and the financial impact under different scenarios.
The CSRD imposes similar requirements under European law, with double materiality (both financial and impact materiality) embedded in the assessment. The practical effect: your auditors and your investor relations team now need a defensible answer to the climate-linked supply chain risk question, and the answer needs to be quantified.
What procurement and finance can do now
Three actions matter near-term.
Map your exposure. Most companies do not have a clear view of which tier-one and tier-two suppliers sit in which climate-vulnerable geographies. Without the map, you cannot quantify the risk, and without the quantification, you cannot disclose it credibly. The map is the foundation, and World Resources Institute climate risk research provides useful public tooling to start.
Diversify and deepen, in that order. Diversification across origins reduces concentration risk, but the deeper move is to invest in the resilience of the suppliers you already have. Regenerative practices, agroforestry, soil health interventions: these reduce yield volatility under climate stress and protect your input cost trajectory.
Embed the climate spend inside procurement, not outside it. Treating climate risk as a sustainability cost line subordinates it to the ESG budget. Treating it as a procurement and resilience investment puts it in the budget that matters, which is the cost-of-goods budget that the CFO defends quarterly.
Nature-based supply chain investments are the asset class designed for exactly this purpose. They sit inside the value chain, they reduce climate-linked supply risk, they generate verifiable Scope 3 reductions, and they produce the documentation an auditor and a regulator can both test.
If you are quantifying climate-linked supply chain risk in advance of the next earnings cycle or the next disclosure period, the carbon and sustainability experts at Carbon Credit Capital can help you map your exposure and structure a Dual-Value Model response that addresses reduction, resilience, and disclosure-readiness in a single program. Schedule a consultation.
More and more small and medium-sized businesses are hearing the same question from their larger customers: What is your carbon footprint? That question now travels down entire supply chains, and it arrives next to tender requirements, certification criteria, and rising customer expectations.
-
Climate Change1 year ago
Guest post: Why China is still building new coal – and when it might stop
-
Greenhouse Gases2 years ago嘉宾来稿：满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Greenhouse Gases1 year ago
Guest post: Why China is still building new coal – and when it might stop
-
Climate Change2 years ago嘉宾来稿：满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Climate Change2 years ago
Bill Discounting Climate Change in Florida’s Energy Policy Awaits DeSantis’ Approval
-
Renewable Energy11 months agoSending Progressive Philanthropist George Soros to Prison?
-
Greenhouse Gases1 year ago
嘉宾来稿：探究火山喷发如何影响气候预测
-
Carbon Footprint2 years agoUS SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits