How Climate Tech Contributes to Better Emissions Reporting

Climate change remains one of the greatest global challenges, demanding urgent and collective action. To stay on track with the Paris Agreement’s 1.5°C target, nations must cut annual greenhouse gas (GHG) emissions by 42% by 2030. This places a significant responsibility on organizations to measure, report on, and reduce their emissions. 

 

This starts with having a clear baseline to pinpoint major emission sources, track progress, and implement effective reduction strategies. However, many reporting methods are complex and resource-intensive, creating a strong demand for better solutions.

 

In recent years, new advanced digital tools have emerged that automate data collection and provide real-time monitoring and actionable insights. These platforms empower organizations to make data-driven decisions, streamline emissions management, and accelerate the transition to a low-carbon economy.

 

Solutions across Emissions Control, Reporting and Offsetting

 

Managing and mitigating greenhouse gas emissions requires an integrated approach to measurement, reporting, and offsetting. The Climate Tech Taxonomy provides a structured framework for categorizing solutions across lifecycle assessment, supply chain monitoring, and ESG. It shows what companies are building solutions within areas such as carbon market trading, carbon offsetting, accounting, and verification.

 

 

Carbon Accounting

 

Carbon accounting is the process of measuring and reporting CO₂e emissions from individuals, organizations, or governments. It plays a crucial role in corporate sustainability by enabling businesses to track, report, and –ultimately–reduce their carbon footprint. 

 

Managing GHG emissions is critical to mitigating the climate crisis. To effectively do so, organizations need a robust technical framework for measurement and reporting. This serves as the foundation for taking meaningful action toward reduction. 

 

GHG emissions fall into three categories—Scope 1, 2, and 3—each representing emissions across an organization’s value chain. Accurately tracking these emissions is essential for businesses aiming to meet net-zero commitments.

• Scope 1 emissions are direct GHG emissions from sources owned or controlled by an organization. These include emissions from company-owned vehicles or industrial processes like manufacturing.
• Scope 2 emissions are indirect GHG emissions from the consumption of purchased energy. These arise from electricity, heating, and cooling sourced from utility providers but used within the organization’s operations.
• Scope 3 emissions encompass all other indirect emissions occurring across an organization’s value chain. These include upstream emissions from suppliers and transportation, as well as downstream emissions from product use and disposal.

 

To simplify GHG measurement, gases such as methane and nitrous oxide are converted into carbon dioxide equivalents (CO₂e) using their Global Warming Potential (GWP). These standardized values allow organizations to report their total emissions footprint more effectively.

 

Emerging Climate Tech solutions in this space include software platforms that quantify emissions, align with ESG reporting standards, and automate emissions tracking across supply chains.

 

A growing number of carbon accounting tools are available to help organizations measure their GHG emissions and identify key sources. By leveraging these solutions, businesses can develop targeted strategies to reduce emissions, improve operational efficiency, and drive the transition toward a low-carbon economy.

 

Notable startups to watch out in Carbon Accounting

 

BeZero Carbon is a global carbon ratings agency that provides independent, risk-based project-level carbon ratings essential for investing in carbon projects. BeZero Carbon raised $32M in Series C funding in February 2025.

 

Scope3 specializes in measuring and reducing carbon emissions in the advertising and media industry. Its emissions model maps the entire digital advertising supply chain, enabling data-driven decisions that optimize for carbon reduction. They raised $25M in Series C funding in October 2024.

 

Supply Chain Monitoring

 

Climate events like hurricanes, floods, and droughts are causing serious disruptions to global supply chains, delaying production, limiting resource availability, and driving up costs. Companies could face up to $120 billion in supply chain losses from environmental risks by 2026. So how can businesses mitigate these risks while strengthening supply chain resilience and reducing costs?

 

Supply chain sustainability is important to achieve climate goals, as modern supply chains span multiple regions and industries before delivering a single final product. To decarbonize supply chains, organizations must implement real-time monitoring systems. It helps to improve energy efficiency, track emissions, and optimize resource use, ultimately reducing waste and lowering costs.

 

Climate Tech innovations in the digital space transform how organizations manage supply chain emissions. Advanced data analytics, IoT sensors, and blockchain-based traceability solutions provide transparency and accountability. This enables businesses to monitor carbon emissions, energy consumption, and sustainability metrics at every stage of production and distribution.

 

Integrating these technologies helps companies engage suppliers, track key sustainability indicators, and scale supply chain decarbonization efforts with speed and efficiency. Investing in Climate Tech solutions empowers businesses to build resilient, low-carbon supply chains that mitigate environmental risks while driving long-term value.

 

Notable startups to watch out for in Supply Chain Monitoring 

 

Parsyl offers data-powered insurance solutions for supply chains specializing in cargo insurance for perishable goods like food and vaccines. The technology helps minimize losses and build resilient and sustainable supply chains. Parsyl raised $20.6M in Series C funding in January 2025.

 

BanQu provides cloud-based supply chain management software that helps companies digitize, streamline, and report on ESG and operational data. Its platform optimizes supply chains, reduces costs, and enhances efficiency. BanQu raised $7.19M in Series C funding in December 2024.

 

ESG

 

Building a world where businesses thrive while making a positive impact on the environment and society requires a strategic approach. By integrating Environmental, Social, and Governance (ESG) principles into their core business strategies, companies can identify opportunities for sustainable growth and long-term value creation.

 

ESG reporting refers to the disclosure of environmental, social, and corporate governance data, enabling organizations to demonstrate their commitment to sustainability and responsible business practices. Transparent reporting helps investors, regulators, and stakeholders assess a company’s impact, risks, and resilience.

 

Climate Tech innovations have led to the development of advanced ESG platforms, equipping businesses with digital tools to measure, manage, and report sustainability performance with precision.

 

These platforms offer comprehensive tools for tracking carbon footprints, monitoring resource consumption, managing waste, and evaluating renewable energy adoption. The ESG reporting tools enable companies to capture highly detailed data across environmental, social, and governance metrics. From tracking emissions and water usage to evaluating labor conditions and board diversity, ESG solutions provide real-time insights that improve transparency, drive accountability, and support informed decision-making.

 

ESG startups that should be on your radar

 

India-based Uniqus Consultech offers cloud-based ESG management software that streamlines consulting, accounting, and reporting services. Its platform helps companies manage ESG compliance and improve sustainability strategies. Uniqus secured $10M in Series B funding in April 2024.

 

US-based Microshare provides real-time data solutions to optimize building operations and reduce environmental impact. By creating digital twins of assets in healthcare, manufacturing, and real estate, Microshare enables smarter ESG decision-making. Microshare raised $5.86M in October 2024 in a Series C funding.

 

Carbon Market Trading

 

Similar to trading goods in traditional markets, captured carbon dioxide is now bought and sold as carbon credits. These tradable financial instruments represent verified claims on avoided GHG emissions or carbon removal—whether through nature-based solutions, technology-driven methods, or point-source capture. Companies purchase these credits to offset their emissions and support climate-positive projects.

 

Corporations, like Microsoft and Google are among the largest buyers, acquiring credits from verified projects to compensate for their operational emissions and meet net-zero commitments.

 

Climate Tech innovation is rapidly advancing digital platforms that streamline the management, tracking, and trading of carbon credits. As this market scales, it is projected to exceed a trillion dollars in annual valuation by 2050. Emerging solutions include:

• Carbon Marketplaces – Online platforms connecting companies with verified carbon credit projects, such as reforestation, renewable energy, and methane capture, ensuring direct and transparent transactions.
• Blockchain-Based Carbon Trading Platforms – Leveraging distributed ledger technology to boost security, transparency, and efficiency while preventing fraud and double counting.
• Green Investment Platforms – Digital solutions linking investors to high-impact ESG-focused projects, providing tools for project discovery, due diligence, and portfolio management.

Startups in Carbon Market Trading to Watch Out

 

Saudi-based Tharawat Green Exchange operates a blockchain-based marketplace that enables businesses to trade carbon credits and offset emissions by planting trees. Tharawat Green Exchange secured $450K in Seed funding from Adaverse in October 2024.

 

Emissions Monitoring

 

Accurate emissions data is essential for effective climate change mitigation. Continuous monitoring of greenhouse gases provides critical insights into their environmental impact, enabling industries and governments to implement targeted reduction strategies.

 

For industrial facilities, emissions monitoring is not just a regulatory requirement—it is a fundamental step toward sustainable operations. By ensuring compliance with environmental standards, continuous emissions monitoring allows industries to minimize their environmental footprint while safeguarding public health.

 

Emissions monitoring involves the precise, real-time tracking of GHG emissions across industries, transportation, and energy production. Advanced solutions integrate cutting-edge technologies such as IoT sensors, satellite imaging, and data analytics to deliver accurate emissions data. These insights empower organizations and policymakers to enforce emissions control measures, increase reporting accuracy, and drive accountability.

 

Notable startups to watch out in Emissions Monitoring

 

US-based Andium develops AI-powered remote monitoring solutions using on-site sensors and cameras to detect methane leaks, fires, and equipment malfunctions in real time. Its technology enhances operational safety and reduces emissions. Andium has raised $21.7M in Series B in Oct 2024 from investors like Intrepid Financial Partners, Climate Investment, Thomas Miglis, and Aramco Ventures. 

 

Germany-based Variolytics designs advanced analytical instruments for emissions and process monitoring. Its technology helps industries track and reduce greenhouse gas emissions, supporting carbon-neutral goals. They raised an undisclosed amount in Series A funding in January 2025 from investors including Nordic Alpha Partners, Fttf, European Commission, and Htgf High-Tech Gründerfonds.

 

Climate Tech Drives Climate Action with Accurate Emissions Reporting

 

Climate Tech is transforming emissions reporting, enabling businesses to track, measure, and manage their carbon footprint with greater accuracy and efficiency.

 

As regulatory requirements tighten and sustainability commitments grow, leveraging emissions data is critical for mitigating risks and unlocking new opportunities. Companies that proactively integrate advanced reporting solutions will strengthen their climate resilience and gain a competitive edge in the low-carbon economy.

 

Looking to navigate the evolving emissions landscape? Request a free trial to explore cutting-edge Climate Tech solutions for emissions reporting.