Amsterdam-based Coolset said Monday it has secured €1.5 million ($1.61 million) in seed funding for its new automated decarbonization platform to help small and medium-sized enterprises (SMEs) reduce their greenhouse gas emissions.
Thanks to the new platform SMEs will be able to measure, analyze, reduce, and offset their carbon impact in just a few weeks, while also having the possibility to track their carbon footprint, set reduction targets, and identify opportunities for improvement.
Coolset’s tool covers emissions across scope 1 (directly from sources owned or controlled by an entity), scope 2 (from energy that has been bought) and scope 3 (all other indirect emissions from an entity’s operations).
The capital injection will allow Coolset to expand the features of the platform so that users can plan scenarios, establish benchmarks, and produce practical decarbonization strategies. The company will also use the funds to hire staff across engineering, sales, and marketing.
“The cost-efficient solution is truly unique, and Coolset enables SMEs – which typically are not served by big consultants selling hours – to accelerate their journey towards net zero emissions,” Paul Kloppenborg, managing partner at Global Cleantech Capital, said in a comment.
The EU Corporate Sustainability Reporting Directive will require more than 50,000 companies in Europe to report on their sustainability by 2024. However, this type of reporting is a challenge for 80% of businesses globally since most options currently available are too complicated and generally targeted at bigger companies.
Founded in 2021, Coolset, previously known as Greencast.io, seeks to close this gap by providing a simple and effective tool for startups and SMEs to automate their decarbonization efforts.
Its customers include employee development specialist Lepaya, print products marketplace HelloPrint, and car rental platform MyWheels, among others.