Sweden’s Normative raises €10m from European climate tech funds

6 Oct 2021

Image: © makistock/Stock.adobe.com

Normative develops ‘carbon accounting’ software to help businesses calculate their climate footprint and reduce greenhouse gas emissions.

Swedish climate tech company Normative has raised €10m from some of Europe’s largest climate tech funds, 2150 and ETF Partners. Existing investors Lowercarbon Capital, ByFounders and Luminar Ventures also participated in the round.

Normative uses automation software to calculate the emissions of companies, and provide insights and guidance to companies on how to get to net zero. It has hundreds of clients and works with organisations including the UN. Normative is also the software provider for the UK’s SME Climate Hub, through which thousands of companies have committed to net zero carbon emissions.

The Stockholm-based software-as-a-service company was founded in 2014.

Co-founder and CEO Kristian Rönn urged business leaders to take measures to reduce their carbon footprints ahead of the UN’s COP 26 Climate Change Conference, which will take place in Glasgow later this month. Earlier in the year, the UN’s climate-science body released a report warning of the dire consequences of the climate crisis.

“But businesses also need to be pragmatic and realise that removing carbon inside their operations and their supply chains makes good business sense. The cost of carbon is a huge liability on your balance sheet and you need to act to ensure that your business will survive,” said Rönn, who left his job analysing global risks at the Future of Humanity Institute at Oxford University to start Normative.

“If we want to slow down global warming fast enough to keep the world safe, we must start comparing apples to apples so that markets, employees, consumers and regulators can keep companies accountable for their true emissions.”

Normative is rolling out a free starter plan in collaboration with Google.org to provide businesses with access to accurate carbon accounting tools.

“We are building cloud software and AI to close the technology gap which prevents most businesses from starting to take climate action,” said Rönn.

Jacob Bro, partner and co-founder at investor 2150, added: “Carbon accounting is the first truly global software vertical in climate tech and we see accelerating demand as millions of companies realise that measuring, reporting and managing their carbon footprint is a necessity to remain competitive and compliant.”

He said that his organisation was excited to back Normative’s work on this “emerging category”.

Fabrice Bienfait, partner at ETF Partners, added: “Businesses know they need to have better, more accurate data on their emissions, both for compliance purposes but also so they can have a credible plan to get to net zero. We are very pleased to join Kristian and his team to make Normative the norm for carbon accounting.”

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Blathnaid O’Dea was a Careers reporter at Silicon Republic until 2024.