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State of play: Emissions tracking software

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May 19, 2023
Illustration of an upside-down wallet pouring out carbon dioxide molecules

Illustration: Annelise Capossela/Axios

Last updated May 18, 2023

The emissions tracking software spaces remains a land grab with well-funded startups taking on the Big Four and Big Tech in a David vs. Goliath battle.

  • TBD on who will actually emerge as a leader in the space, but recent developments include:
  • ENVEA, a manufacturer of emission and process monitoring systems, acquired California Analytical Instruments, a business specializing in environmental monitoring, for an undisclosed amount.
  • CarbonChain, a carbon accounting platform, announced its $10 million Series A round co-led by Union Square Ventures and Voyager Ventures.
  • nZero, a carbon management platform, closed a $16 million Series A funding round led by Fifth Wall and a U.S. energy company.
  • ACT, a provider of environmental commodities trading services, acquired a controlling stake in Green Project Technologies, a software company focused on corporate climate accounting.
  • Context Labs, a data provider that helps companies track carbon emissions, is in talks to raise $150 million from investors.
  • Watershed, a startup that analyzes companies’ greenhouse gases, acquired VitalMetrics, an emissions accounting and data firm, for an undisclosed amount.
  • Halliburton and Siguler Guff launched Envana Software Partners, a venture that offers emissions management SaaS.
  • PortXChange launched its EmissionInsider platform for emissions tracking and reporting.
  • NevadaNano, a provider of ESG tools, closed a $30 million Series C funding round led by Honeywell Ventures and Emerson Ventures.
  • Pathzero, a platform for financial institutions to exchange carbon information, raised AUD$8.6 million for its Series A+ round.
  • Microsoft is adding emissions tracking software and a carbon credit network into its 365 enterprise software.
  • Fifth Wall, a VC firm with an active climate fund, partnered with consulting group EY to offer emissions tracking software for real estate portfolio holders.
  • Felicis Ventures backed GreenPlaces, an emissions tracking software startup for small and medium businesses, to the tune of $4 million in seed funding.
  • Sweep, a carbon accounting software startup that has raised nearly $100 million, rolled out a new tool for financial institutions to track emissions while simultaneously taking aim at bigger tech companies like Salesforce for lackluster emissions tracking products.
  • KKR revamped its ESG data collection process after more than a decade.
  • Sustain.Life raised $16 million in seed funding co-led by Tapestry Venture Capital and Sustain.Life co-founder Mike Hanrahan, who previously founded Jet.com and sold it to Walmart for $3.3 billion.

What we’re watching: Banks, insurers, private equity and investment managers are expected to spend $256 million by 2027 on carbon tracking software as more climate-related disclosure rules are adopted.

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