Climate Finance | December 13, 2022

Avarni clinches funding to help companies track Scope 3 emissions

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, December 13 – As regulators and investors push companies to report their emissions, startups are coming to market with carbon accounting and measurement tools. Sydney-based Avarni raised $3 million to help companies track their indirect, or Scope 3, emissions, which typically make up the bulk of their carbon footprints.

Avarni’s software uses artificial intelligence and procurement data to build “a comprehensive picture of carbon emissions in value chains” and help companies manage carbon offsets and prepare compliance reports. Avarni says it has analyzed more than $100 billion in corporate spending data and 150 million metric tons of CO2-equivalent emissions in companies’ supply chains.

“This is the intelligence businesses need to inform their decarbonization strategies,” said Field Pickering of Vulpes Ventures, which backed Avarni’s seed round alongside Main Sequence and Common Sense Ventures.

Other startups offering carbon accounting software include Persefoni, Sphera, Greenly, Sweep and Sustain.Life.

Regulatory shift

Scope 3 emissions reporting is not broadly required in Australia, but new prime minister Anthony Albanese has promised more climate action. The International Sustainability Standards Board voted to require companies to disclose Scope 3 emissions.

In the U.S., the S.E.C. has proposed mandatory climate-risk disclosure, including  some Scope 3 emissions. The Biden administration may also require government contractors to report direct emissions (Scope 1 and 2) and Scope 3 emissions.