Normative’s founder, Kristian Rönn, was working at Oxford University simulating the effects of climate change on humans, he realized the extreme human suffering that global warming could cause. Therefore, he decided to leave academia and start Normative in 2014 to accelerate the net-zero transition by creating the world’s first emission accounting engine. Normative calculates a company’s emissions (including scopes 1, 2, and 3) based on their spending. The software maps these transactions using advanced data analysis (including over 200mln data points!) and calculates the corresponding emissions. Once you know your climate footprint, Normative also helps you address it by highlighting emissions hotspots and providing insights on how to reduce GHG emissions through high-impact climate initiatives. There already is an important list of partners supporting this solution: starting with the United Nations’s Race to Zero campaign and the UK Government’s COP26 initiative to make SMEs sign up to Net Zero targets. Normative has even received a grant and engineering resources from Google itself to accelerate development. For all these reasons, 2150 recently led their $9 mln Series A round.
When Normative’s founder, Kristian Rönn, was working at Oxford University simulating the effects of climate change on humans, he realized the extreme human suffering that global warming could cause. Therefore, he decided to leave academia and create Normative to accelerate the transition towards a net-zero world.
Normative is the world’s first emission accounting engine. It calculates a company’s entire climate footprint, highlights emissions hotspots, and provides insights on how to reduce GHG emissions through high-impact climate initiatives. So far, Normative has accounted for more than 38mln tons of CO2 and has helped their customers mitigate over 500k tons of CO2.
Normative calculates a company’s emissions (including scope 1, 2, and 3) based on their spending. The emission accounting engine understands what products a company purchased, maps these transactions using advanced data analysis (including over 200mln data points!), and calculates their corresponding emissions.
As more countries, industries, and companies set net-zero ambitions, and regulators increase GHG reporting and management requirements, it is clear that we need a way to efficiently and accurately measure the carbon footprint of any and all business. Investors have come to this realization as well, and 2150 spent several months analysing the increasingly busy landscape of carbon accounting software startups.
What is unique about Normative is that they use a company’s balance sheet to estimate emissions. Where a regular GHG footprint assessment would require a company to fill in many forms and provide countless documentation, Normative only needs a company’s financial statement to do so (and is similarly or, according to some sources, even more, accurate than the traditional GHG footprint estimation methodologies). Therefore, they significantly lower the cost and required resources for companies to get insight into their carbon performance and improvement opportunities.
Normative allows SMEs and enterprises to measure and report their Scope 1, 2 and 3 emissions and identify and manage areas for action. They have partnered with both the United Nations’s Race to Zero campaign and the UK Government’s COP26 initiative to make SMEs sign up to Net Zero targets. Normative has also received a grant and engineering resources from Google itself to accelerate development. For all these reasons, 2150 recently led their $9 million Series A round.
Without knowing, there is no doing. Normative states that today, less than 1% of companies worldwide measure their carbon footprint. And if you don’t know how much GHG emissions you are producing, let alone where and what you can do about it, you’re not likely to reduce them. This is why we need this 1% to rapidly increase if we want to reach net-zero by 2050 (or earlier). And that is why companies like Normative need public and private sector support to scale. Normative is receiving such support from the UN, the UK Government’s COP26 initiative, tech incumbents like Google, and of course, from 2150’s Series A investment.
At Carbon Equity, we believe a carbon accounting tool should provide transparent and accurate numbers, actionable solutions, reporting in line with industry standards, and should be easy to adopt by SMEs and enterprises alike. A long list, we know. Fortunately, Normative is building a product that ticks all these boxes. Normative calculates 100% of your climate footprint aligned with the Greenhouse Gas Protocol (GHGP) based on your balance sheet alone. This includes scope 1, 2, and 3 emissions, meaning it covers your value chain as well. More importantly, the software shows the calculations behind your carbon footprint, so that your emissions don’t become a black box.
Whilst measurement is vital to understand where you are today, measurement without action will not get us closer to net-zero. Luckily, Normative agrees. They provide a visualization of emission hotspots along the supply chain, support companies to translate these insights into a net-zero strategy and help them to prioritize actions (and they even help companies get these actions certified by international bodies like the UN!). As carbon accounting is not **mandatory yet (we’re looking at you, regulators), carbon accounting tools must be easy to implement by businesses. Normative works as a third-party software and does not require customers to modify their internal systems, simply to upload their accounting data into the platform – making sure carbon accounting doesn’t take more time than it needs to.