Carbon Direct Inc., a New York-based startup that helps companies reduce their carbon emissions, has raised $60 million in fresh funding.
The funding round was led by Decarbonization Partners and Quantum Energy Partners.
Founded in 2019, Carbon Direct provides a platform through which companies can invest in sustainability initiatives to offset their carbon emissions. Additionally, the startup has an advisory team that helps companies find new ways to reduce their environmental footprint. Carbon Direct’s customer base includes Microsoft Corp., Shopify Inc. BlackRock Inc. and other major enterprises.
As part of its platform, Carbon Direct provides an application programming interface that companies can use to make investments in sustainability projects. According to the startup, its platform supports both one-time transactions and subscriptions. A built-in reporting tool enables organizations to track their spending through a centralized dashboard.
Alongside its procurement features, the startup’s platform provides data about sustainability projects. For example, Carbon Direct can provide information on the types of trees involved in a project that removes carbon from the atmosphere through improved forest management practices. According to the startup, companies can use the data surfaced by its platform to plan their sustainability programs.
To extend its platform’s capabilities, Carbon Direct is currently developing a tool that will enable organizations to more easily monitor their carbon emissions. The tool can estimate an organization’s environmental footprint, as well as measure the impact of sustainability programs.
Carbon Direct offers advisory services alongside its software platform. According to the startup, it has a team of more than 30 scientists focused on helping organizations implement emission reduction plans. Carbon Direct’s scientists can also assist organizations with related tasks, such as measuring a business unit’s environmental footprint.
“Carbon Direct’s platform turns industry-leading carbon science into action through software and market expertise,” said Carbon Direct chief executive officer Jonathan Goldberg. “Without scientific expertise, carbon commitments will have far less impact than they could. This investment from Decarbonization Partners and Quantum Energy Partners will help us scale the work we are already performing for industry leading clients.”
Carbon Direct will use its newly closed $60 million funding round to expand its platform’s capabilities. The startup will also use a portion of the capital to develop additional offerings.
Carbon Direct’s funding round comes a few weeks after Altruistiq, a startup that enables companies to more easily measure their business operations’ environmental footprint, raised $18 million from investors. Earlier, EcoVadis Inc. closed a $500 million investment to enhance its sustainability data platform.
Image: Carbon Direct
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