Pledge Raises $ 4.5 Million Seed to Create Carbon Measurement and Removal API – TechCrunch
With the looming climate crisis, many companies want to do their part. But asking customers to “offset the CO2 emissions from this delivery” is usually a hammer and a nutshell. There is very little transparency around carbon offsets. In addition, small businesses want access to high quality carbon credits, but calculate their impact at the product, service and transaction level, and may purchase a fraction of a carbon credit rather than a very imprecise “program”. .
Commitment is a startup that caters to industries such as freight forwarding, ridesharing, travel, and last mile delivery, where customers can learn how to add offsets to their transactions.
He has now raised a $ 4.5 million round of funding led by Visionaries Club with the participation of Lowercarbon Capital of Chris Sacca and Zinal Growth, the investment vehicle of Guillaume Pousaz (founder and CEO of Checkout.com) . Pledge has operated in closed beta so far.
Founded by Revolut’s first employees, David de Picciotto and Thomas Lucas, as well as Freetrade’s co-founder and former CTO, André Mohamed, Pledge will start with logistics and transportation. Pledge says companies will be able to measure and mitigate their shipping, errands, deliveries or trips to achieve carbon neutrality by integrating the Pledge API. The platform aims to provide customers with analytics and insights as well as recommendations on how to reduce their emissions over time.
Pledge says its emissions calculations will follow global standards, including the GHG protocol, the GLEC framework as well as the ICAO methodology while complying with ISO standards.
Key to all of this is that Pledge claims that its platform will allow companies capable of buying a fraction of a carbon credit (similar to retail investors buying a fraction of a share) while providing access to balanced portfolios encompassing different methodologies and geographic areas (similar to an ETF).
David de Picciotto, Co-Founder and CEO of Pledge said: “Currently, there is no easy and scalable way for companies of any size to understand and remove their emissions. Traditional carbon measurement and offsetting solutions are expensive and difficult to implement and are therefore only accessible to a select group of large companies. We launched Pledge to enable any business to launch high quality, verified climate products in the easiest and fastest way possible. “
Robert Lacher, Co-Founder and Partner of Visionaries Club said: “Pledge builds pipes for any business to launch applications to measure and mitigate their environmental impact. Similar to the wave of financial infrastructure providers enabling any business to become a fintech, Pledge will become the catalyst for climate initiatives by providing the relevant tools and software infrastructure to build on.
Clay Dumas, Partner at Lowercarbon Capital, added, “The biggest bottleneck in increasing carbon removal will be connecting supply to demand. The Pledge team is applying what they’ve learned by creating the world’s best financial products to unlock euros, dollars and pounds sterling to suck carbon out of the sky.
Picciotto says that while working at a large private equity firm and sitting right next to the ESG team, he saw firsthand the growing number of applications for LPs, mostly pension funds, asking for more transparency and reporting on ESG and in particular the climate KPIs of the portfolio. companies. He realized that there had to be a way to streamline this reporting / calculation and access high quality carbon credits, providing more transparency and tools for internal and external stakeholders.
“The more we looked at the mechanisms upon which the carbon market was built, the more parallels we saw with the financial services industry. Our research began with the belief that our experience in founding or helping to create industry-leading companies, such as Freetrade and Revolut, could provide a unique angle to help reverse climate change, ”he said. .