Emissions Tracking Startups See Growth

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The SEC continues to discuss rules for public company reporting on emissions and other climate-related performance. Even though no regulations are in place, companies are getting ready. 

And here to help them get ready? Climate tech startups. 

Studies have shown that climate tech can have a real impact on reducing and reversing climate change, and startups of all ages and stages are getting funding, rolling out products, and making their way in the world today. 

Emissions tracking and reporting software have seen big growth and big investment. Reuters analyzed data from Pitchbook and other sources and found that almost $300 million was invested in carbon accounting technology in 2021. 

Many of the emissions accounting platforms help companies track emissions, pinpoint areas for reduction, track progress toward goals, and more. These systems are highly data-driven and often use artificial intelligence (AI) and machine learning (ML) to find patterns. 

While there aren’t detailed standards for emissions reporting, there are guidelines—like the Greenhouse Gas Protocol, developed in the late ‘90s. And companies are moving forward without set standards because measurement is important.

If (nay, when?) the SEC rolls out rules for reporting, they’ll have to present a standard that will allow investors to compare company to company, apples to apples. 

Regardless of how the SEC rules shape up, software and technology will be huge in continuing the progress of measuring, tracking, and reporting on emissions. And startups are leading the way.