According to the World Economic Forum, so-called “scope 3 emissions,” or CO2 in the supply chain, can account for 90% of a company’s carbon footprint, and more than half of all emissions worldwide grip supply chain. Tracking and reducing these emissions is easier said than done. If you can’t track it, you can’t improve it. Berlin-based startup The Climate Choice has completed a $2 million round to help companies reduce some of their carbon footprint.
“In 2014, we experienced this firsthand when we tried to reduce the climate impact of our first company, Resmio, by sourcing products from climate-friendly suppliers. For us, this task proved impossible,” explains Yasha Tarani, CEO and co-founder of The Climate Choice. “After the sale of Resmio, I took a sabbatical and witnessed first-hand the devastating effects of climate change. was lost to flooding and wildfires glowing on the horizon in New Zealand, I decided to dedicate my life’s work to reversing the degradation of the planet.”
Talani joined forces with co-founder Lara Obst to build what she calls “the EU’s leading climate innovation programme.” Together, they decided to focus on decarbonizing the corporate supply chain, along with his scientist Dr. Ray Farrhan, who had recently worked on a data-intensive product for the financial industry.
The $2 million equity financing round was led by Gutter Capital.
“We believe the world is at a tipping point. From 2024 onwards, approximately 49,000 companies will be required to disclose Scope 3 emissions data in compliance with the EU’s Corporate Sustainability Reporting Directive. We believe The Climate Choice is the perfect partner to help these companies rise to the occasion,” explains Tarani. “We have already seen the success of our platform with our customers in simplifying data collection and collaboration with suppliers, and are excited to enable businesses around the world to make climate-related sourcing decisions. I have.”
The company has built a platform that helps companies understand their suppliers’ emissions, obtain auditable data, and take action to decarbonize their supply chains. The product is now being used by some early customers such as O2 Telefonica and his HiPP. The company says it actively monitors thousands of suppliers.
“Our mission is to empower all companies to be climate champions. have climate change transition plans in place, but less than 5% of companies are well prepared to achieve these plans, and we believe the TCC will fundamentally change this. We are doing it,” says Tarani. “Ten years from now, our platform will automate supplier engagement for the world’s largest companies, giving every company access to real-time supplier data to make informed decisions. I guess.”
The company insists that it is not a carbon accounting platform, but something else entirely.
“Traditional carbon accounting practices rely on averages and assumptions to calculate supplier emissions. But it doesn’t really help you choose to decarbonise, because all suppliers within a category look the same,” explains Tarani. “TCC starts where carbon accounting typically ends. Our platform automates supplier outreach and generates real primary data profiles on supplier emissions and practices. Shared openly within the network, there is no duplication of effort between companies Armed with comprehensive supplier data, companies can compare suppliers, make informed sourcing decisions and We can decarbonize our supply chains.”
