Carbon accounting startups offer a range of tools and services to measure, report, and verify companies' carbon footprints and support the development of strategies to reduce emissions and carbon offsets.

The global market for carbon accounting software reached $15.3 billion in 2023. This figure is expected to rise to $64.4 billion in 2030. (Carbon Accounting Software Market Size, Share & Industry Analysis, By Deployment)

New carbon emission regulations, investor expectations, and public scrutiny of carbon emissions, which are part of the daily life of companies, make it attractive to work with carbon accounting startups.

Beyond a reporting tool for companies, these solutions provide verified data to identify opportunities for efficiency gains in corporate operations. (Supply Chain Innovation: Blockchain ve Net Zero Strategy)

Solutions such as AI-powered platforms that analyze complex data streams and blockchain-based supply chain transparency tools support companies in developing a carbon strategy and making sound decisions.

Objective solutions that serve sustainability can create a new growing market, new circular designs, new business models, and new financial feasibility. 

For those who do not report with transparent data, it will be even more difficult to convince consumers and investors.(Negative scientific and press reports on the efficacy of carbon credit projects has led to a ‘direct pullback in buyer investment’)

The drivers of change are significant and difficult to develop solutions for on their own.

We analyze the innovation efforts of global companies and examine how they test new technologies, business models, and markets with startups. This way, we can develop insight into the future of sectors.

Let's take a look at the collaborations of companies with startups and the solutions developed with a focus on carbon accounting.

Everlane and Watershed - Textile

Watershed is a platform solution that supports corporate sustainability goals, enabling them to set targets, model emissions develop a mitigation strategy, and evaluate carbon offset finance options. Companies such as Airbnb, Carlyle Group, CDP, YETI, and BBVA are using Watershed to reduce emissions, meet customer, investor, and regulatory requirements, and modernize sustainability programs. 

Apparel brand Everlane has partnered with carbon accounting startup Watershed to collect and interpret data in the dark. The collaboration helped Everlane minimize air freight and convert some of its production resources from raw materials to recycled alternatives, including cashmere. By analyzing its dark data, Everlane reduced its carbon emissions by 22%. (Everlane slashed its carbon emissions by 22% with help from a high-tech startup. Companies all over the world are racing to do the same.) 

Watershed's investors include venture capital firm Sequoia. The startup has raised $139 million since its founding in 2019. With customers including BlackRock, Airbnb, and Walmart, it has reached a valuation of $1 billion by 2022.

Carbon Maps and Foodles - Food

Carbon Maps' SaaS platform enabled Foodles to assess the environmental impact of over 400 recipes and create their environmental label 'Carbo Score'. With Carbon Maps' analysis, Foodles was able to identify the recipes and ingredients in its portfolio that have the biggest impact on the environment. The platform also enabled them to correlate these results with sales and thus identify recipes that needed to be overhauled as a priority. (Evaluate the environmental footprint of your menus from end to end)

Carbon Maps founded in 2023, has successfully closed a €7 million seed investment round. (Carbon Maps, an environmental accounting startup for the food industry, gets new backers)

Zevero - FMCG

Founded in 2021, startup Zevero combines climate expertise with an AI-powered platform to help companies create sustainability statements and improve their emissions strategy through insights and analytics.  Using Zevero's platform since 2022, the Nice Drinks brand was able to reduce its carbon intensity by 11% between 2022 and 2023 with the efficiency insights it collected. Brewing the world's first carbon-negative beer without any offsets with Gipsy Hill (Brewing the world's first carbon negative beer without any offsets) Zevero received an investment of €7 million in 2024 and started to expand its operations. (Carbon Accounting Startup Zevero Raises $7 Million to Drive Global Expansion)

Zevero has been able to create broader value by integrating its solution with inventory management software and technology companies serving the packaged beverage market. Most recently, Zevero merged with LEVELUP, a Singaporean climate technology company. The partnership gives each company access to important data from the other's market. (Carbon counter Zevero acquired by Singaporean LEVELUP) 

Chemistry 3D and Greenly - Chemical Raw Material Production

Greenly offers a platform that enables companies to measure, monitor, reduce, and offset their carbon footprint under international carbon accounting standards such as the GHG protocol. It analyzes the impact of the corporate ecosystem from employees to suppliers on carbon emissions. Greenly supports the development of a comprehensive carbon reduction strategy in line with the Science Based Targets Initiative SBTI. Startup was founded in 2019 already reached more than 2000 customers, and manages more than 40 million tons of CO2 equivalent, equivalent to around 8% of emissions in France.

KİMYA is a French company that uses its expertise in polymers to support manufacturers who want to integrate 3D printing into their production processes. With insights generated using the Greenly platform, it discovered that it could reduce emissions by 35% by using recycled PETG filament and 50% by using recycled polycarbonate for flanges. Another significant carbon emission reduction impact could be achieved by using recycled cardboard boxes with water-soluble ink.

Greenly received €500,000 in pre-seed investment in 2020 and closed with $52 million in its most recent Series B investment round in 2024, bringing its total investment to $77.6 million. (Carbon Accounting and Management Startup Greenly Raises $52 Million)

NWS and Greenplaces  - Communication

Greenplaces is a sustainability platform software that offers end-to-end solutions. Platform's carbon reporting, emission reduction, and ROI calculation solutions make it easier for companies in different sectors to achieve their business and climate goals.

Working in partnership with Greenplaces, telecom company NWS was able to measure its total carbon footprint in less than a month. One of the benefits of the collaboration was the ability to identify priority areas to reduce carbon emissions. Thanks to the assessments, it has created more than 20 improvement plans that it can easily share among customers, investors, and employees.

Founded in 2021, Greenly has received a total of $19 million in investments, the last of which was a $13 million Series A investment. (GreenPlaces raises $13M to bring sustainability solutions to the mass market)

Market Overview

During our analysis, we have come across over 100 carbon accounting startups offering different value propositions. As we mentioned in the examples, most of these startups were founded in recent years. 

Startups that succeed in creating value for their corporate customers are expanding into new geographies and markets with the investments they receive. 

In a nutshell, these startups help companies analyze their operational data and make sounder strategic decisions. (Corporate Innovation Dark Data)

Leveraging dark data, in a time when corporate operations' impact on the environment is part of the new financial feasibility, becomes even more critical.

Our recommendation for companies is to partner with appropriate carbon accounting solutions that will improve operational efficiency and compliance with new market regulations.

Workinlot facilitates engagement between corporations & PoC-validated startups, driving innovation and investment opportunities.

 For corporate-startup collaboration projects, we offer services ranging from engagement design to project implementation with our curated methodologies and expertise.

 This transfer of know-how has enabled companies to establish corporate venture capitals, open innovation platforms, and venture builder structures with greater learning.

 Let's connect and identify collaboration opportunities.