Research shows that companies estimate an average error rate of up to 40% in their manual emissions measurements, resulting in a huge accuracy gap in current reporting. This means that despite the number of businesses committing to net zero being on the rise, through this inaccurate reporting, inadvertently, there is still a huge amount of greenwashing taking place.
Swedish carbon accounting engine Normative has raised an all equity €31 million Series B round to help businesses on their journeys towards net zero. The new funding will enable the startup to further expand supply chain measurement services, with the ultimate aim of helping more businesses and customers reduce emissions via increased accuracy in the data used.
The platform helps companies to accurately measure supply chain emissions, known as scope 3, which on average forms 90% of a business’ carbon outputs. By engaging suppliers to reduce emissions, businesses will have a positive impact on their own carbon footprint as well as their suppliers’, enabling an economy-wide net zero transition.
Kristian Rönn, CEO of Normative said: “There is a real urgency for businesses to take genuine climate action, and genuine climate action is about getting the fundamentals right: 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.”
The company partners with a number of climate change organisations including the UN, to deliver actionable sustainability intelligence.
The round was led by climate tech growth equity firm, Blume Equity. New investor Horizons Ventures also participated alongside returning investors Future Five and ETF Partners and 2150, who led the company’s €10m series A funding round in October 2021.
Michelle Capiod, partner at Blume Equity added: “Normative provides businesses with automated carbon accounting that is accurate, particularly related to the complexity of scope 3 emissions. Companies need to know and continuously track their emissions to future proof their business by removing carbon from their operations and maintain a competitive edge amidst incoming regulations.”