The Climate Choice wants to make supply chain emissions more visible and greener

According to the World Economic Forum, so-called “Scope 3” emissions – or CO2 in supply chains – can account for up to 90% of a company’s carbon footprint and, globally, more than half of all emissions can be attributed to only a few supply chains. Tracking and reducing these emissions is easier said than done; and if you can’t keep up with it, you can’t improve it. Berlin-based startup The Climate Choice has closed a $2 million round to help companies cut some of their carbon from this part of their emissions as well.

“In 2014, I ran into the problem when I tried to reduce the climate impact of my first company, Resmio, by purchasing products from climate-friendly suppliers. The task proved impossible for someone who was not a climate expert,” says CEO and co-founder of The Climate Choice, Yasha Tarani. “After Resmio was sold, I took a sabbatical and witnessed firsthand the catastrophic effects of climate change. In Delhi, I came to temperatures of 122 degrees with people sleeping on the streets, in Thailand my hut was destroyed by floods and in New Zealand I saw the glow of bushfires on the horizon, so I decided to dedicate my life’s work to reversing the degradation of our planet.

Tarani joined forces with co-founder Lara Obst, who had built what she calls the EU’s leading climate innovation agenda. Together they decided to focus on decarbonizing corporate supply chains, with a third partner – data scientist Dr. Rey Farhan, who was most recently working on data-intensive products for the financial industry. .

The $2 million equity financing round was led by Gutter Capital.

“We believe the world is at a turning point. From 2024, approximately 49,000 companies will be required to disclose Scope 3 emissions data under the EU Corporate Sustainability Reporting Directive. We believe The Climate Choice is positioned to be the partner of choice to help these companies grow,” says Tarani. “We have already seen the success of our platform with our customers in simplifying data collection and collaboration with suppliers, and we are excited to enable companies around the world to make climate-smart sourcing decisions.”

The company has built a platform that helps companies understand their suppliers’ emissions, acquire audit-ready data, and take action to decarbonize the supply chain. The product is currently in use by several early customers, including O2 Telefonica and HiPP. The company says it actively monitors thousands of vendors.

“Our mission is to empower every business to be a climate champion. We believe that now more than ever this mission is within reach. Today, around half of European companies have a climate transition plan in place, but less than 5% of them show the preparation required to carry out these plans. We think TCC will fundamentally change that,” says Tarani. “Within ten years, our platform will automate supplier engagement for the world’s largest companies, and all companies will have access to real-time supplier data to enable informed decision-making.”

The company is adamant that this is not a carbon accounting platform, but something completely different.

“Traditional carbon accounting practices rely on averages and assumptions to calculate supplier emissions. This approach is useful for inferring an approximate carbon footprint and understanding hotspots, but since every supplier in a category is alike, there’s no need to make decarbonization choices,” says Tarani. “CCT begins where carbon accounting typically ends. Our platform automates supplier outreach and generates real primary data profiles on supplier emissions and practices. Supplier profiles are shared openly within our network, so that work is not duplicated between companies. Armed with comprehensive supplier data, companies can benchmark suppliers and make informed sourcing decisions to decarbonize their supply chain. »