- Carbon accounting is the key to understanding and reducing your company’s emissions.
- Carbon accounting is helping businesses track their environmental impact and secure funding.
Climate change is real, and its impact is felt in various industries. To combat the climate crisis, many companies are looking for solutions that can help them reduce their carbon emissions and understand their environmental impact. Carbon accounting is a subsector of climate fintech that offers an effective solution to measuring a company's emissions.
Carbon accounting involves collecting data from sources like energy, transportation, and waste management to track a company's carbon emissions. Companies can use software solutions to effectively collate their environmental metrics and assess their supply chains for Scope 1, 2, and 3 footprints. By understanding the sources of emissions, companies can better plan for how to reduce them in the future.
The sector is quickly gaining traction. In the first half of 2022, carbon accounting startups brought in €673m globally, according to an analysis from BanklessTimes.com.
It's an increasingly crowded sector in Europe where startups are looking to develop and try various technologies for better carbon-tracking solutions. Sweep, a French company, was the best-funded player in the sector with a $73m Series B round. As the industry matures, investors are looking to pick winners and consolidate their positions.
Commenting on the data, the CEO of BanklessTimes, Jonathan Merry, said
Investors are recognizing the potential of carbon accounting and its role in helping companies to reduce their emissions. The sector is still young, but more and more startups are entering the market, pushing for innovation and broader adoption. This trend will likely continue as companies become increasingly aware of the need to take action on climate change. Carbon accounting is essential for any company looking to measure and reduce its emissions, and this trend looks set to continue.BanklessTimes CEO, Jonathan Merry
Carbon Accounting Is Critical in Combating Climate Change
Climate change is a growing concern in the business sector, with many companies looking to track their carbon emissions and reduce them. Carbon accounting offers an effective way for companies to measure their environmental impact and understand where they need to take action to cut their carbon footprint.
The carbon accounting startups use technology to track and report on carbon emissions. Therefore, helping businesses and governments to understand their carbon footprint better. With a better understanding, they can take appropriate action to reduce it.
Besides, the carbon emission data is essential for climate financing. It helps to raise money for projects that will help mitigate or adapt to climate change. This includes investments in renewable energy, energy efficiency, and sustainable agriculture.
Many carbon accounting startups are already making a difference. With the proper support, they could play an even more significant role in the fight against climate change.
Carbon Accounting Service Is Expanding Fast
There are several approaches to carbon accounting, and startups are trying them out with various techs. Some startups are keen on developing software to help businesses track their emissions. Yet, others are working on hardware solutions.
There is a lot of interest in carbon accounting from the financial sector. Investors are keen to find ways to support carbon accounting startups and make sure their investments are appropriately used. In addition, investors are increasingly looking for innovative solutions to measure emissions in more accurate ways.
As technology advances, carbon accounting services are reaching more companies and organizations. The value proposition of carbon accounting is becoming more and more evident as businesses realize the importance of understanding their environmental impact. With the proper support, these startups could become game-changers in the fight against climate change.
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