Pathzero, an Australian company focused on measuring and managing financed emissions, has successfully raised AU$8.6 million in a Series A+ funding round. This brings the total funding for the company to AU$15.6 million. The funding round was led by the venture capital firm Carthona Capital, with contributions from Clyde Bank Holdings, Antler, and individual investors.
The company has developed the Pathzero Navigator, a carbon reporting and analysis tool specifically designed for financial institutions. This tool allows them to measure, manage, and disclose the financed emissions of their investment portfolios. Notable users of the tool include firms like StepStone, Hesta, and Carthona Capital, which facilitates the secure exchange of carbon information between financial institutions and their portfolio companies.
This funding announcement coincides with the release of a consultation paper by the Australian Treasurer, indicating that the first mandatory climate reporting requirements may be implemented by 2024-2025.
Carl Prins, CEO of Pathzero, stated, “Since the rollout of Navigator, we have experienced substantial market interest and have secured several cornerstone deals. This demand highlights the urgent need for technology that fosters collaboration among businesses to address the Scope 3 challenge effectively. The strategic shift for us has been to extend beyond carbon accounting and establish a carbon information network that allows firms to engage and collaborate with their portfolio companies to reduce emissions.”