French startup Carbonfact has set its sights on revolutionizing carbon accounting solutions by focusing exclusively on the fashion industry. The company recently secured a $15 million funding round led by Alven, with additional investments from Headline and Y Combinator.
With changing regulations in Europe and the U.S., big companies in the fashion industry are under pressure to develop effective carbon accounting strategies. Carbonfact’s decision to specialize in the fashion industry sets it apart from other industry-agnostic platforms like Watershed and Persefoni.
Carbonfact’s unique approach involves retrieving data from existing ERP systems and conducting lifecycle assessments specifically tailored to clothing items. By centralizing and normalizing data from suppliers, the platform helps companies calculate their emissions across different scopes, including indirect emissions from third-party suppliers.
The startup’s CEO, Marc Laurent, emphasized the importance of industry-specific tools for accurate calculations and product improvement. Carbonfact’s platform allows users to generate detailed reports and analyze the environmental impact of each product, enabling them to make informed decisions about materials, manufacturing locations, and transport methods.
Already onboarded by over 150 apparel and footwear brands, including New Balance and Allbirds, Carbonfact is making waves in the sustainability management software market. With clients paying tens of thousands of dollars annually for its services, the French startup is already generating significant recurring revenue.
As the demand for sustainability management software continues to grow, Carbonfact’s industry-specific approach could pave the way for similar platforms to emerge. The future of carbon accounting solutions may see a shift towards more specialized tools tailored to specific industries, offering companies a more granular and effective way to manage their carbon footprint.