Swedish startup Normative AB announced today it has raised $31 million in a new round of funding to build out its carbon accounting platform.
Today’s Series B round was led by Blume Equity and included the participation of new investor Horizons Ventures, plus existing investors Future Five, ETF Partners and 2150. The raise comes just nine months after the company closed on a $10 million Series A round.
Normative has come up with a novel platform that it says can more accurately measure carbon emissions from businesses’ supply chains. The startup explains that in order for companies to reach net zero emissions, they need accurate and actionable insights into their supply chains. However, Normative said existing carbon accounting solutions are not very reliable.
For instance, one recent study showed that companies estimate an error rate of up to 40% when it comes to measuring their carbon emissions. If reporting methods are so unreliable, it means many companies are likely to be making false claims about their efforts to become more sustainable, Normative said.
Normative says its carbon accounting engine helps businesses to calculate their entire climate footprint more accurately. Armed with this information, they can then set about taking steps to reduce not just their own carbon footprint, but also their suppliers’.
Normative co-founder and Chief Executive Kristian Rönn said he was inspired to start the company after working on a research project at Oxford University that simulated the consequences of climate change. The results of that study showed that global warming would ultimately lead to extreme human suffering.
That inspired Rönn to quit academia and do something about the problem. In 2014, he teamed up with his co-founders Adam Wamai Esega and Robin Undall-Behrend to create an accurate carbon accounting platform that can help to reverse the trajectory of global warming.
“There is a real urgency for businesses to take genuine climate action, and genuine climate action is about getting the fundamentals right,” he said. “What gets measured, gets managed. This is an incredibly important process, particularly when it comes to calculating scope 3 emissions. At Normative, we are building the most compliant and audit-ready product on the planet — making it easy for businesses to do the right thing.”
Normative has already partnered with numerous organizations across the world that are looking to tackle climate change, including the United Nations, providing them with what it calls “actionable sustainability intelligence.”
With the funding from today’s round, Normative said it will be able to further expand its supply chain measurement services, putting it in a position to help more businesses reduce their carbon emissions.
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