Neutreeno Raises $5 Million to Help Companies Tackle Supply Chain Emissions
UK-based Neutreeno, which is developing a B2B SaaS platform for decarbonization, announced that it has raised $5 million in seed funding. The round was led by Regeneration.VC. Other investors include Remarkable Ventures Climate Fund (RVC), Closed Loop Partners, Prequel Ventures, Scania Invest and Beacon Venture Capital.
Neutreeno, a spinout company from the University of Cambridge, has a platform that uses advanced technology to advise suppliers and enterprises on how to reduce their carbon footprint as early as possible in the value chain of products and services they deliver. Studies show that on average, 90% of emissions in the value chains result from sources not owned or controlled by it (Scope 3 emissions), creating significant challenges for companies in meeting their net zero goals.
This challenge of reducing Scope 3 emissions is often due to a lack of primary value chain data, along with an inability to influence suppliers. Neutreeno’s platform seeks to provide that data, enabling users to better determine if the materials or components they use can be replaced to reduce carbon footprint. The company’s platform analyzes materials and components, with analyses based on as few as ten data points per supplier, with thousands of products tracked, Neutreeno said. Dr Spencer Brennan, Neutreeno’s founder, said that the company “takes a completely novel, robust engineering approach to challenge the Scope 3 status quo.”
According to the company, it accomplishes this by using proprietary process networks, based on mass and energy flow research, and pinpointing solutions that reduce emissions. Neutreeno’s customers span Asia, Europe, and North America, including S&P 500 and FTSE 250 companies across multiple industries, and a wide range of SMEs. Using this technology, the company said that it has helped companies around the world significantly cut their carbon emissions, both direct and indirect (Scope 1-3). One customer, the company said, achieved a 35% reduction in carbon emissions potential with the platform automatically directing it to actions that led to new product designs, procurement changes, and substantial emissions reductions, in just four weeks.
Fredrik Nilzén, head of sustainability at vehicle manufacturer Scania Group, parent company of Scania Invest and one of Neutreeno’s customers, said that the platform “offers a unique and innovative solution that is crucial for tackling sustainability challenges with improved efficiency and cost-effectiveness at scale. Scania Invest’s support emphasizes the strategic importance of advancing Neutreeno’s pioneering technology in the sustainability landscape.”
Michael Smith, General Partner of Regeneration, added:
“Neutreeno has the first technical system able to move beyond Scope 3 reporting to systematically decarbonize industry, unlocking the US$130 trillion of capital waiting to fund the low-carbon transition.”
Source: esgtoday.com
