Greenly and Normative are combining their carbon accounting businesses in a deal that brings together two major emissions datasets and expands the range of climate management tools available on a single platform.
The resulting system will give businesses a broader view of Scope 3 emissions across supply chains. The combined business aims to increase annual recurring software revenue from €30 million to €50 million (approximately $34 million to $57 million) within three years, according to the announcement made earlier in September.
The deal comes as the carbon accounting and sustainability software industry undergoes consolidation. Other recent transactions include Green Project Technologies’ acquisition of Optera, Novisto’s purchase of Minimum and Diginex’s acquisition of Plan A.
The merger seeks to help companies navigate growing demands for emissions data, regulatory reporting and more detailed information about products and supply chains.
The new platform will cover carbon accounting, supplier engagement, life-cycle assessment and compliance with frameworks including the European Union’s Corporate Sustainability Reporting Directive (CSRD), the International Financial Reporting Standards (IFRS), rules and regulations by the U.S. Securities and Exchange Commission (SEC) and standards under the Science Based Targets initiative (SBTi).
Data And AI Take Center Stage
Normative will contribute its scientific methodology and enterprise-focused capabilities to Greenly’s AI-based platform. The combined dataset will contain more than 5 million emission factors.
The companies also plan to expand Greenly’s use of artificial intelligence in carbon-accounting tasks, including mapping corporate entities, checking data quality, assessing Scope 3 emissions and scaling life-cycle assessments.
A new climate-risk capability is intended to assess physical hazards and the potential financial impact of extreme weather on assets and supply chains.
Relevant: New Greenly Platform Targets Expanding EU Product Traceability Rules
Normative has raised more than €40 million ($45.6 million) from investors including Blume Equity, Horizons Ventures, ETF Partners and 2150. Greenly has raised €75 million ($85.5 million), including funding from Fidelity International Strategic Ventures.
With offices in Paris, London, New York and Stockholm, the combined group will remain founder-led and backed by investors from both companies.
Existing Greenly customers will keep their current contracts and pricing, with no immediate changes planned as a result of the merger.
Read more: Doctolib Taps Plan A To Build Investor-Grade Carbon Reporting
