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

The World Economic Forum says so-called “scope 3 emissions” — or CO2 in supply chains — can account for up to 90% of a company’s carbon footprint, and more than half of all emissions worldwide can be traced back to just a handful of supply chains. Tracking and reducing these emissions is easier said than done; and if you can’t track it, you can’t improve it. Berlin-based startup The Climate Choice closed a $2 million round to help companies reduce some of their carbon emissions from that portion of their emissions as well.

“In 2014, I experienced the problem first hand when I was trying to reduce the climate impact of my first company, Resmio, by sourcing products from climate-friendly suppliers. The task proved impossible for someone who was not a climate expert,” explains Yasha Tarani, CEO and co-founder of The Climate Choice. “After selling Resmio, I took some time off and witnessed first hand the catastrophic effects of climate change. In Delhi I reached 122 degrees while people slept on the streets, in Thailand my hut was destroyed by floods and in New Zealand I saw the glow of bushfires on the horizon. I decided then to dedicate my life’s work to reversing the destruction of our planet.”

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

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

“We believe the world is at a turning point. From 2024, around 49,000 companies will be required to disclose Scope 3 emissions data under the EU Sustainability Reporting Directive. We believe The Climate Choice can be the partner of choice to help these companies thrive in the moment,” said Tarani. “We’ve already seen the success of our platform with our customers in simplifying data collection and collaboration with suppliers, and we’re excited to empower companies around the world to make climate-sensitive sourcing decisions.”

The company has built a platform to help companies understand their suppliers’ emissions, collect auditable data and take action to decarbonize the supply chain. The product is currently being used by several early customers including O2 Telefonica and HiPP. The company says it is actively monitoring thousands of suppliers.

“Our mission is to empower every company to be a climate champion. We believe that mission is within reach now more than ever. Today around half of European companies have a climate protection plan, but less than 5% of these companies show a willingness to implement these plans. We believe that TCC will fundamentally change this,” says Tarani. “In 10 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 insists that it’s not a carbon accounting platform, but something else entirely.

“Traditional carbon accounting practices rely on averages and assumptions to calculate emissions from suppliers. This approach is useful for deriving an approximate carbon footprint and understanding hotspots, but since every supplier looks the same within a category, it’s useless for actually making decarbonization decisions,” explains Tarani. “TCC starts where carbon accounting normally ends. Our platform automates supplier targeting and generates true primary data profiles on supplier emissions and practices. Supplier profiles are shared openly within our network, so work is not duplicated across organizations. Armed with comprehensive supplier data, companies can compare suppliers and make informed sourcing decisions to decarbonize their supply chain.”

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