CO2 Emission Tracking for Supply Chains Secures €10M Funding

The Growing Imperative of Carbon Accounting

Governments are increasingly urging companies to adopt carbon accounting practices, yet actual implementation remains limited. Many organizations, even those attempting to measure their impact, typically only account for approximately 10% of their total emissions. This is largely due to the omission of emissions generated throughout their supply chain, which often represent the vast majority – around 90% – of a company’s overall carbon footprint.

This incomplete assessment is akin to submitting a simplified financial report. However, accurately tracking emissions across the entire supply chain presents significant challenges.

Normative's Funding and Approach

Recognizing this difficulty, Normative, an “accounting engine” designed to track supply chain emissions, has secured €10 million in funding from a consortium of European and U.S. climate technology investment firms. The investment round was spearheaded by 2150 and ETF Partners.

Additional investors included Lowercarbon Capital, led by Chris Sacca, alongside participation from existing investors ByFounders and Luminar Ventures.

Strategic Partnerships and Database

Headquartered in Stockholm, Normative has established a strong reputation through partnerships with prominent organizations. These include the United Nations Race to Zero campaign, dedicated to accelerating the transition to a decarbonized economy, and the U.K.’s SME Climate Hub.

The company also offers a complimentary starter plan, developed in collaboration with Google.org, specifically tailored for small businesses.

Normative aims to standardize the often complex, costly, and labor-intensive process of carbon accounting.

The Urgency of Climate Action

Kristian Rönn, co-founder and CEO of Normative, emphasized the need for immediate and decisive action. He stated that, in light of the ongoing climate emergency, businesses must demonstrate courage and proactively address their carbon impact.

Rönn further noted that reducing carbon emissions within operations and supply chains is not only environmentally responsible but also strategically advantageous, as the cost of carbon represents a substantial financial risk.

Prior to founding Normative, Rönn served as a global risks analyst at the Future of Humanity Institute at Oxford University.

Industry Perspectives on Carbon Accounting

Jacob Bro, partner and co-founder at 2150, highlighted carbon accounting as the first truly global software category within the climate tech sector. He anticipates increasing demand as companies recognize the necessity of measuring, reporting, and managing their carbon footprint to maintain competitiveness and ensure regulatory compliance.

Fabrice Bienfait, a partner at ETF Partners, echoed this sentiment, stating that businesses require more accurate emissions data for both compliance and the development of credible net-zero strategies.

Normative's Technology and Competitive Advantage

In a recent discussion, Rönn explained that Normative has developed the first comprehensive emissions accounting engine. Clients upload their complete accounting data, including invoices for utilities, transportation, travel, and raw materials.

The platform then assesses the carbon impact of all purchases.

Rönn asserts that Normative distinguishes itself from competitors by achieving complete carbon accounting, encompassing 100% of a company’s emissions. While other solutions address supply chain emissions, they often rely on manual processes.

Normative leverages seven years of experience and the capacity to process the carbon impact of millions of suppliers.