Cozero, a German climate tech company specialising in carbon management software, announced it has closed a €6.5 million Series A funding round. This investment will fuel Cozero’s international expansion and further develop its Climate ERP platform, designed to integrate sustainability seamlessly with core business operations.
In a relative note, just last month, Greenly raised $52M to make carbon accounting accessible to all as regulations loomed.
Kvanted Ventures and EnBW New Ventures (ENV) led the funding round, with participation from NewAlpha Asset Management and a consortium of industry experts and advisors. These advisors hail from logistics, manufacturing, and SaaS sectors, including prominent figures like Henrik Larsen (former CPO, Maersk) and Gero Decker (Co-founder, Signavio).
The need for streamlined sustainability
The press release highlights a critical challenge for businesses: a significant gap between sustainability efforts and core business operations. Currently, 91% of companies lack comprehensive measurement of their carbon emissions, and only 26% have established science-based reduction targets. Cozero’s software aims to bridge this gap by offering a centralised platform for emission management.
Helen Tacke, CEO and Co-founder of Cozero, emphasises the importance of linking climate action with business impact. Cozero’s Climate ERP goes beyond basic compliance reporting. It allows companies to make data-driven decisions about their environmental footprint and value chain, ultimately transforming business practices towards sustainability.
Actionable sustainability through data
Cozero’s software caters to a range of needs, including measuring and reporting Scope 1-3 emissions (a comprehensive greenhouse gas accounting standard). It offers features like:
- Granular emission data: This allows companies to align environmental progress with business objectives.
- Emission forecasting: Companies can model the impact of business growth on emissions.
- Return on climate investment (ROCI): This metric helps assess the financial viability of climate action initiatives.
- Detailed reporting: Companies can generate reports with the same level of detail used in financial control processes.
Melanie Beyersdorf, Investment Manager at ENV, highlights the importance of balancing environmental and financial considerations. Cozero’s platform equips businesses with the data and insights needed to make informed decisions that are both environmentally responsible and financially sound.
Future-proofing emission management
With over 375 million tonnes of CO2 emissions under management, Cozero positions itself as a leader in carbon accounting and management. Their all-in-one solution offers features to navigate complex regulations like the Corporate Sustainability Reporting Directive (CSRD).
What investors think about Cozero’s approach
This funding round signifies strong investor confidence in Cozero’s approach to climate tech. Aurélie Nicolas, Investment Director at NewAlpha Asset Management, emphasises Cozero’s alignment with their investment strategy, particularly regarding the need for robust corporate climate management tools.
Maria Wasastjerna, Founding Partner at Kvanted Ventures, applauds Cozero’s achievements and growth. She highlights Cozero’s ability to address the rising demand for effective climate management tools, particularly across multiple industries.
What we think about the startup
Cozero’s success story is a proof to the growing importance of combining financial responsibility with environmental impact. With this new funding, Cozero is likely to expand its reach and empower businesses to manoeuvre into a sustainable future.
