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{"id":29516,"date":"2023-04-19T21:54:45","date_gmt":"2023-04-19T21:54:45","guid":{"rendered":"https:\/\/scienceandnerds.com\/2023\/04\/19\/tanso-banks-a-seed-for-its-co2-footprint-software-for-industrial-manufacturers\/"},"modified":"2023-04-19T21:54:46","modified_gmt":"2023-04-19T21:54:46","slug":"tanso-banks-a-seed-for-its-co2-footprint-software-for-industrial-manufacturers","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2023\/04\/19\/tanso-banks-a-seed-for-its-co2-footprint-software-for-industrial-manufacturers\/","title":{"rendered":"Tanso banks a seed for its CO2 footprint software for industrial manufacturers"},"content":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/04\/19\/tanso-seed\/<\/a><\/br>
\nTanso banks a seed for its CO2 footprint software for industrial manufacturers<\/br>
\n2023-04-19 21:54:45<\/br><\/p>\n

\n

Munch-based climate tech startup Tanso<\/a>, which sells software to help industrial manufacturers carry out sustainability reporting and carbon accounting, has banked \u20ac6.5 million in early stage growth funding.<\/p>\n

The investment breaks down into a \u20ac4 million seed raise, led by Cologne-based investor Capnamic, with existing investors including as UVC Partners also participating; and \u20ac2.5M it took in last month via an EU innovation grant under the bloc\u2019s EIC Accelerator program<\/a>.<\/p>\n

The EU program aims to support homegrown startups to scale and the accelerator\u2019s 2023 work program included \u201cenvironmental intelligence\u201d among a number of green tech areas of focus, aligning with the bloc\u2019s overarching goal of becoming \u2018climate neutral\u2019 by 2050.<\/p>\n

We first talked to Tanso back in fall 2021<\/a> when its trio of founders had just nabbed pre-seed funding. Since then they\u2019ve been busy \u2014 getting their first \u201cclimate intelligence\u201d product to market and supporting a growing number of manufacturing businesses\u2019 to report their carbon emissions.<\/p>\n

Tanso\u2019s customers number in double digits at this point, per co-founder and CPO Gyri Reiersen. Tanso has also been growing: With the team now numbering around 20 and more hires on the way.<\/p>\n

Reiersen tells TechCrunch the startup has picked up customers around the German-speaking DACH region, which means in Austria and Switzerland as well as its home market of Germany. \u201cThe majority in industries such as automotive, machine manufacturing, and steel production,\u201d she adds. \u201cIn the next phase, we look at other exciting industries in manufacturing and neighboring geographies.\u201d<\/p>\n

The EU is expanding sustainability reporting requirements on companies, under regulations such as the Corporate Sustainability Reporting Directive (CSRD) \u2014 as well as via emissions trading rules and mechanisms like the Carbon Border Adjustment Mechanism (CBAM). And Tanso notes that from 2025 every company with an annual turnover of more than \u20ac40M and a balance sheet total of more than \u20ac20 million (or more than 250 employees) will need to calculate and publish its own carbon footprint as part of its annual reporting \u2014 so its building a suite of software tools in anticipation of rising demand.<\/p>\n

It suggests sustainability regulations are forcing more companies to make improvements to their products geared towards reducing emissions in order to stay competitive \u2014 pointing to household brand names like BMW and Bosch paying increasing attention to sustainability as a criteria for supplier selection, for example.<\/p>\n

\u201cWe believe that carbon will become a factor is procurement processes and suppliers benchmarked on their carbon performance. This means to win contracts, products need to be designed and manufactured with environmental impact factored in,\u201d argues Reiersen. \u201cWe support our customers in benchmarking their products and companies with others and identifying hotspots and reduction potentials to stay competitive.\u201d<\/p>\n

The core product, aka the Tanso Climate Intelligence Suite, was launched last fall. It remains focused on industrial manufacturing companies (so mostly medium-sized businesses) which Tanso argues are under particular pressure to decarbonize given how polluting heavy industry tends to be. It cites figures suggesting manufacturing companies are responsible for around a third of Europe\u2019s carbon emissions but says many have not been caught by sustainability reporting requirements up to now.<\/p>\n

However a lot more of these manufacturers will be as the EU\u2019s sustainability reporting requirements expand in the next couple of years.<\/p>\n

Tanso\u2019s ISO-compliant software is designed to support its target industrial enterprise customers in calculating, managing and reducing carbon emissions \u2014 at both company and product level. \u201cOur core product is the corporate carbon footprint (CCF) module, where companies set up a standard process to continuously manage their full carbon accounting for all worldwide production sites for full Scope 1-3 [emissions reporting],\u201d explains Reiersen.<\/p>\n

\u201cSmart imports and integrations automatically map raw data from ERP [enterprise resource planning] and logistic systems to emissions factors in our calculation engine. Thereby, we reduce effort and create the basis for solid data analysis, drilling down on the most granular level where it adds value to go deep. Customers can also set Science-Based Target (SBTi) conform targets, strategically plan their reduction measures according to their real emissions, and actively steer their emissions.\u201d<\/p>\n

Tackling product carbon footprints (PCF) is about addressing \u201cinformation bottlenecks in the supply chain\u201d, per Reiersen, who flag an incoming launch in this area.<\/p>\n

\u201cNext week, we will launch a simple PCF calculator for individual products together with Europe\u2019s largest industry association VDMA [Germany\u2019s Mechanical Engineering Industry Association] with over 3,500 members, to accelerate the information transfer in the supply chain.<\/p>\n

\u201cWe have already tested this with over 60+ companies in a beta phase. In addition to this, we develop currently automated PCF calculations for our customers\u2019 full product portfolio, as well as a supplier engagement module to support suppliers in their PCF exchange. The largest hinderance for suppliers to sharing data is expertise in calculation and internal data complexity.\u201d<\/p>\n

Reiersen says the plan for the latest funding injection is to move into the next phase of product development \u2014 which means making the software more modular so the startup can provide targeted support for both CCF and PCF calculation and optimization and mesh with more manufacturers\u2019 needs.<\/p>\n

\u201cTo this end, we are significantly expanding our team and will hire a number of experts from the fields of life cycle assessments and data analytics to further develop and expand our product offering,\u201d she adds, noting also that the funding will allow the startup to pour more resource into building additional product modules at the same time as ramping up the sales team for the core product. So it\u2019s foot on the gas to help others take their feet off the gas.<\/p>\n

\u201cOur mission is to not only have Europe\u2019s industrial emissions as \u2018carbon under management\u2019 in our software but to unlock and accelerate the decarbonization we need to mitigate climate change,\u201d she adds.<\/p>\n<\/p><\/div>\n

<\/br><\/br><\/br><\/p>\n

Science, Tech, Technology<\/br>
\n<\/br>
\nSource:https:\/\/techcrunch.com\/2023\/04\/19\/tanso-seed\/<\/a><\/br><\/br><\/p>\n","protected":false},"excerpt":{"rendered":"

Source:https:\/\/techcrunch.com\/2023\/04\/19\/tanso-seed\/ Tanso banks a seed for its CO2 footprint software for industrial manufacturers 2023-04-19 21:54:45 Munch-based climate tech startup Tanso, which sells software to help industrial manufacturers carry out sustainability reporting and carbon accounting, has banked \u20ac6.5 million in early stage growth funding. 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