Sustainability data platform HowGood raises $12.5M

HowGood, a sustainability data platform, has raised a $12.5 million funding round led by impact investor Titan Grove.

Why it matters: ESG has been a hot topic for investors, and for companies, the market for products around sourcing and supply chain to both meet shareholder demand and their own mission is, as a result, booming.

How it works: Companies want more visibility in their supply chain, not only to reduce inefficiencies but to also ensure issues like biodiversity and labor practices are in order.

• HowGood traces the ingredients, chemicals and materials used to make food and products in the supply chain based on hundreds of different metrics, such as the factory processing conditions, farm labor risks and more.
• “Creating transparency throughout the system is the goal,” CEO Alexander Gillett tells Axios.
• The company works with several consumer products goods companies, restaurants and retailers, including Danone, Chipotle and Shake Shack.

What’s next: The company said the investment will help it hire more people to expand its industry partnerships in the U.S. and Europe, and keep adding datasets within its sustainability intelligence platform.

• HowGood plans to triple its headcount this year, Gillett says.

Bottom line: We want to “develop the capacity for the platform to do more reporting so that people can power their [environmental, social and governance] and [the UN’s sustainable development] goals based on it,” he says.