Carbon Direct raises $60 million to help companies reduce their carbon emissions


Carbon Direct Inc., a New York-based startup that helps companies reduce their carbon emissions, has raised $60 million in new 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 a team of advisors who help companies find new ways to reduce their environmental footprint. Carbon Direct’s customer base includes Microsoft Corp., Shopify Inc., BlackRock Inc., and other large enterprises.

As part of its platform, Carbon Direct provides an application programming interface that companies can use to invest in sustainability projects. According to the startup, its platform supports both one-time transactions and subscriptions. An integrated reporting tool allows organizations to track their expenses via a centralized dashboard.

Along with its procurement features, the startup’s platform provides data on sustainability projects. For example, Carbon Direct can provide information about 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 presented by its platform to plan their sustainability programs.

To expand the capabilities of its platform, Carbon Direct is currently developing a tool that will make it easier for organizations to 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 consulting services alongside its software platform. According to the startup, it has a team of more than 30 scientists who are dedicated to helping organizations implement emission reduction plans. Carbon Direct scientists can also help 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 CEO Jonathan Goldberg. “Without scientific expertise, carbon commitments will have much less impact than they could. This investment from Decarbonization Partners and Quantum Energy Partners will help us scale the work we already do for industry-leading clients.

Carbon Direct will use its new $60 million funding round to expand the capabilities of its platform. The startup will also use part of the capital to develop complementary offers.

Carbon Direct’s funding round comes weeks after Altruistiq, a startup that makes it easier for companies to measure the environmental footprint of their business operations, raised $18 million from investors. Earlier, EcoVadis Inc. closed a $500 million investment to improve its sustainability data platform.

Image: Direct Carbon

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