Normative, the carbon accounting engine, has raised €31m in a series B round led by Blume Equity. New investor Horizons Ventures also participated alongside returning investors Future Five and ETF Partners and 2150, who led Normative’s €10m series A round in October 2021.
What were the executives’ thoughts on the funding?
Kristian Rönn, CEO of Normative: “There is an urgency for businesses to take genuine climate action, this is about getting the fundamentals right: what gets measured, gets managed.”
“This is an incredibly important process, particularly when it comes to calculating scope 3 emissions, which is why we at Normative are building the most compliant and audit-ready product on the planet – making it easy for businesses to do the right thing. We’re thrilled to announce this latest funding round, which will enable us to continue our vital work.”
Michelle Capiod, Partner at Blume Equity: “Normative provides businesses with automated carbon accounting that is accurate, related to the complexity of scope 3 emissions. Firms need to know and continuously track their emissions, so they can take action to future proof their business by removing carbon from their operations, and maintain a competitive edge amidst incoming regulations. We are delighted to support Normative as they rapidly scale up.”
What is Normative’s market offering?
Research shows that companies estimate an average error rate of up to 40% in their manual emissions measurements resulting in a huge accuracy gap in current reporting. This means that despite the number of businesses committing to net zero being on the rise, there is still a huge amount of involuntary greenwashing. Normative is uniquely positioned to help businesses on their journeys to net zero due to the unparalleled level of accuracy it provides.
This is particularly significant when it comes to measuring supply chain emissions, known as scope 3, which on average forms approximately 90% of a business’ carbon outputs. By engaging suppliers to reduce emissions, businesses will have a positive impact on their own carbon footprint as well as their suppliers’, enabling an economy-wide net zero transition.
Poorly measured emissions are bad for businesses who need to comply with strengthening carbon disclosure regulations. The European Commission has already adopted the Corporate Sustainability Reporting Directive (CSRD) to combat the shortfall in quality of ESG reporting.
The US Securities and Exchange Commission (SEC) recently proposed a new rule that will require corporations to provide detailed reporting of their emissions and net-zero transition plans. Regulations are coming, and businesses must ensure they are ready.