The fashion industry is a major contributor to global carbon emissions, responsible for a staggering 10% – even surpassing the combined emissions of international flights and maritime shipping. Founded in 2021, Carbonfact aims to tackle this challenge by providing fashion brands with an automated carbon management software solution. Now, the Paris-headquartered startup has secured a $15 million Series A funding to make their solutions even better.
This recent Series A funding round of $15 million was led by existing investor Alven, joined by new investor Headline who will also be taking a board seat. Y Combinator, who supported Carbonfact in their 2021 batch, participated in the round as well.
Earlier this month, we reported about Infogrid that raised $13M funding to scale real estate decarbonisation solutions, led by climate tech pro Kate Henningsen. Also, last month, Greenly secured $52M to make carbon accounting accessible to all.
What problem is Carbonfact trying to solve
Measuring a garment’s environmental impact is no easy feat. Over 100 data points, including material origin, weight, and manufacturing energy usage, are required for a single product.
Further complicating matters are the intricate, multi-tiered supply chains that characterise the fashion industry. Manually collecting and consolidating data across these layers is not only error-prone but also unsustainable in the face of increasingly stringent regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD).
Paris-based Carbonfact tackles this challenge by automating the data collection and analysis process. Their software connects to a company’s IT systems, cleaning and analysing existing data to identify gaps and anomalies.
Machine learning then fills in missing details to create reliable footprint calculations. This allows brands to pinpoint emission hotspots within their manufacturing processes, develop reduction plans, and generate reports for carbon disclosure that comply with various frameworks and new regulations.
How will be new funding be used
The funding will be used to help textile companies not only measure their emissions but also develop plans for reduction. Additionally, Carbonfact will be expanding its global onboarding team and has recently launched new modelling tools. These tools allow fashion brands to predict the environmental impact of design changes or supplier selection before production begins, enabling them to prioritise emission reduction over offsetting.
What do we think about the startup
While Carbonfact’s solution offers a much-needed tool for the fashion industry, questions remain. Can the platform effectively address the complex ethical and environmental issues embedded within global fashion supply chains? Will it be enough to truly curb the industry’s substantial carbon footprint? Only time will tell if Carbonfact lives up to its promise of accelerating fashion’s path towards decarbonization.
