The Rise of Net-Zero Emissions Targets and the Growing Importance of Carbon Accounting
In recent years, a growing number of major corporations have announced their commitment to achieving net-zero emissions targets. While these goals alone may not be enough to significantly impact climate change, they are having a ripple effect throughout industries and supply chains. Companies across various sectors are now feeling pressure to meet these targets, and smaller organizations in particular are struggling to keep up.
The Challenges of Carbon Emissions Tracking
Smaller companies often lack the resources and personnel needed to track their carbon emissions accurately. This is where Greenly comes in – a five-year-old Paris-based startup that has developed a cutting-edge carbon accounting software solution. By leveraging customer data, including utility bills, freight costs, cloud computing usage, and financial records, Greenly’s platform calculates carbon emissions by category and scope for its clients.
"We’ve built a business on helping these SMBs and mid-market companies cope with those new obligations at a lower price," said co-founder and CEO Alexis Normand. "Our goal is to provide an accessible solution that makes it easier for companies of all sizes to meet their climate goals."
Greenly’s Rapid Growth
Under Normand’s leadership, Greenly has experienced significant growth in recent years. The company recorded over $10 million in annual recurring revenue last year and aims to double this figure annually for the next several years.
To support its ambitious growth plans, Greenly recently secured a $52 million Series B funding round led by Fidelity International Strategic Ventures, with participation from Benhamou Global Ventures, Energy Impact Partners, Hewlett Packard Enterprise, HSBC, Move Capital, and XAnge. This investment will enable the company to expand its product offerings and further develop its carbon accounting expertise.
The Rise of Life Cycle Assessments
In addition to its core carbon accounting software, Greenly is now working on integrating life cycle assessments (LCAs) into its platform. LCAs are a critical tool for companies looking to assess the environmental impact of their products throughout their entire lifecycle – from raw materials extraction to end-of-life disposal.
These assessments can be time-consuming and costly, requiring companies to gather data on materials usage, energy consumption, and supplier emissions. Greenly’s automation-heavy approach aims to streamline this process, allowing smaller companies to conduct comprehensive LCAs more quickly and accurately.
The Increasing Importance of Climate Tech
Greenly’s Series B funding round is a significant milestone in the climate tech sector. While many climate startups struggle to secure growth equity investments after their early stages, Greenly has successfully navigated this challenge by applying a well-understood business model – SaaS (Software as a Service).
"This investment demonstrates that there is a growing market for businesses focused on sustainability," said Normand. "We’re not just a climate tech company; we’re a software company with a specific focus on climate."
The Future of Climate Tech
Greenly’s success and the growth equity investment it has secured may signal a shift in the venture capital landscape. As more investors become interested in supporting climate-focused startups, this could lead to increased funding opportunities for companies working on sustainability-related solutions.
In conclusion, the rise of net-zero emissions targets is driving significant change throughout industries and supply chains. Companies like Greenly are at the forefront of this movement, providing innovative solutions to help organizations meet their climate goals. As the importance of carbon accounting and life cycle assessments continues to grow, we can expect to see more companies investing in climate-focused technologies and services.
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