The Climate Choice, a climate intelligence software platform for decarbonizing industrial supply chains, announced $2 million in pre-seed funding.
The round was led by Gutter Capital along with Possibilian Ventures, with participation from existing investors West Tech Ventures and Business Angels. The capital will be used for further development and expansion of its Climate Intelligence Platform, which helps companies understand climate performance, comply with reporting requirements, and take actions to realize climate transformation in the supply chain.
“It is not enough to turn off the lights at HQ. Corporations need to take full accountability for their carbon emissions, and that means getting serious at Scope 3 emissions reporting and reduction” said Dan Teran, Co-Founder of Gutter Capital. “There are many startup companies focused on carbon accounting software at the corporate level. Without suppliers on board, the analysis is skin deep. The Climate Choice platform provides a fast and painless solution for corporate procurement teams to understand their suppliers carbon footprint and mitigation plans.”
According to the Oliver Wyman Stepping Up report from February of 2023, around half (49%) of European companies report having a climate transition plan in place to limit warming in alignment with the Paris Agreement. However, when it comes to the ambition and transparency of those plans, less than 5% of companies show the advancement transition readiness required to achieve the Paris Agreement’s goals. With regulations on the horizon, The Climate Choice is setting companies up for a clear path to decarbonize their Scope 3 emissions and achieve their climate targets together with suppliers.
“There is still a large disconnect between the aspirational climate targets and the reality of actions taken– and yet every company now requires a clear and effective approach for reducing their emissions. Data-informed, streamlined processes are key for monitoring, tracking and engaging suppliers in their decarbonization journey for any large supply chain,” said Yasha Tarani, Co-founder & CEO at The Climate Choice. “We’re very excited to team up with Gutter Capital to develop our Climate Intelligence Platform delivering scalable and accessible decarbonization for corporate supply chains globally.”