iDenfy, a company specialising in identity verification and fraud prevention, has announced its commitment to reducing its Scope 1 and 2 greenhouse gas emissions by 63% by the year 2035.
This target, verified by the Science Based Targets initiative (SBTi), aligns with the 1.5°C climate goal. As part of this initiative, iDenfy has also made public its comprehensive greenhouse gas emissions inventory.
Understanding iDenfy's emissions
Operating in a data-intensive, cloud-reliant industry, iDenfy acknowledges the significant energy consumption inherent in its operations.
iDenfy acknowledges the significant energy consumption inherent in its operations
Its services involve computationally demanding processes such as AI model inferences, liveness detection, and anti-money laundering (AML) screenings, all of which contribute to its environmental impact. Though it doesn't operate factories or use heavy machinery, these processes contribute a measurable footprint that clients in regulated sectors are keen to monitor.
Structured climate reporting
The necessity for climate reporting in the financial sector is underscored by the EU’s Corporate Sustainability Reporting Directive (CSRD). IDenfy recognises this obligation, as banks and fintech clients increasingly demand such transparency. To address this, iDenfy collaborated with Vesta Consulting, a sustainability advisor in the Baltics, to assess its emissions and develop a reduction strategy.
The emissions inventory, which follows the GHG Protocol Corporate Accounting and Reporting Standard, covers the period from January 1 to December 31, 2025. The main sources of emissions include company vehicles, office heating, and electricity. For 2025, iDenfy's Scope 1 and 2 emissions are set at 13.13 tCO₂e, a 1.57% reduction from 2024 due to lower vehicle fuel consumption. The emissions intensity per full-time employee also slightly decreased, while the employee count remained constant. Scope 3 emissions, involving purchased goods and employee commuting, are still under evaluation and expected in future reports.
Enhancing reporting accuracy
To meet the ambitious 2035 target, iDenfy is exploring several measures
Domantas Ciulde, CEO of iDenfy, remarked, “As a digital business, our footprint looks different from a manufacturer’s. But it is still real and still worth measuring. Our clients are being asked hard questions about our supply chain, and we want to be the kind of vendor that is transparent and looking to a more sustainable future.”
To meet the ambitious 2035 target, iDenfy is exploring several measures. These include transitioning its vehicle fleet to electric and hybrid models, shifting to renewable energy sources for office electricity, and improving supplier engagement for more precise consumption data.
Ciulde further stated, “We work with banks and fintechs that are held to a high standard on reporting. It would not make sense for us to ask them to trust a vague claim. Publishing the actual numbers and having someone else to verify the target is the only version that we felt was worth doing.”
IDenfy, the identity verification and fraud prevention firm, has published a validated corporate climate target according to Science Based Targets initiative (SBTi), meaning that iDenfy plans to reduce its absolute Scope 1 and 2 greenhouse gas emissions by 63% by 2035 and has set this goal in line with the 1.5C climate goal after being validated by the SBTi. The company has also released its full greenhouse gas emissions inventory.
Identity verification is a data-intensive, cloud-dependent business. Every verification triggers a chain of computationally heavy operations, including AI model inferences, liveness detection, document scans, and AML screening, all running across cloud infrastructure at scale. While iDenfy does not operate factories or heavy machinery, that sustained computational demand still adds up to a measurable energy footprint, and one that enterprise clients in regulated industries are increasingly asking vendors to account for.
Credible reduction plan
Climate reporting is no longer optional for the financial sector. Based on the EU’s Corporate Sustainability Reporting Directive (CSRD), thousands of companies are mandated to report emissions, and in a similar manner, banks and fintech firms expect from the companies in their supply chain to report emissions in detail. IDenfy already reported on that many clients have started demanding it, so they cooperated with Vesta Consulting, a sustainability consulting firm in the Baltics to measure its footprint and build a credible reduction plan around it.
The inventory period covers the complete reporting period Jan 1 – Dec 31 2025, and was prepared based on the GHG protocol Corporate Accounting and Reporting standard. IDenfy doesn’t have manufacturing, industrial process, or heavy machinery. Besides the cloud-based storage partners, the main emission sources are company-owned vehicles, electricity, and the heating used to power its offices.
Company-owned vehicles
Besides the cloud-based storage partners, the main emission sources are company-owned vehicles, electricity, and the heating that is used to power its offices. Total Scope 1 and 2 emissions for 2025 stand at 13.13 tCO₂e. Comparing to 2024, it was reduced by 1.57%, primarily due to lower fuel consumption across the company’s vehicle fleet.
Emissions intensity per full-time employee also decreased slightly, from 0.238 to 0.234 tCO₂e, while the number of employees remained stable throughout the reporting period. Scope 3 emissions, which cover purchased goods, business travel, and employee commuting, are currently being measured and will be disclosed in the next annual report.
Future reporting precision
“As a digital business, our footprint looks different from a manufacturer’s. But it is still real and still worth measuring. Our clients are being asked hard questions about our supply chain, and we want to be the kind of vendor that is transparent and looking to a more sustainable future,” said Domantas Ciulde, the CEO of iDenfy.
Reaching a 63% reduction by 2035 requires more than a pledge. When talking about the future, to reach the 2035 target, iDenfy’s team is considering to transition its vehicle fleet to electric and hybrid models, shift office electricity to a renewable supply, and work with its supplier to obtain crystal-clear consumption data for future reporting precision.
“We work with banks and fintechs that are held to a high standard on reporting. It would not make sense for us to ask them to trust a vague claim. Publishing the actual numbers and having someone else to verify the target is the only version that we felt was worth doing,” added Domantas Ciulde, the CEO of iDenfy.
