Avarni Raises $2.5M Funding to Support Large Enterprises in Achieving Net-Zero Goals
Avarni, a Sydney-based startup, has secured $2.5 million AUD in funding from Main Sequence, Sprint Ventures, and AfterWork Ventures. The company aims to assist large enterprise organizations in measuring their carbon emissions and identifying areas in their supply chains that contribute to their carbon footprint. With the increasing regulatory requirements for Scope 3 reporting, Avarni’s services are becoming crucial for businesses looking to achieve their net-zero targets.
Addressing the Challenge of Scope 3 Emissions
Scope 3 emissions, which come from sources within an organization’s value chain, can represent a significant portion of its carbon impact. However, tracking these emissions can be time-consuming and expensive for companies. Avarni’s platform simplifies the process by analyzing procurement spend data and identifying suppliers that contribute the most to supply chain emissions. Through customized questionnaires and free access to the platform, Avarni helps organizations gather supplier data and calculate more accurate emissions factors.
Impacts on Regulatory Compliance
As more laws and regulations are introduced to enforce Scope 3 reporting, companies are realizing the importance of addressing their indirect emissions. In the United States, businesses are mobilizing quickly to engage their supply chains in decarbonization efforts. Avarni has observed an increase in new clients from the US as companies prepare for reporting requirements. In Australia, where mandatory climate reporting will be introduced next year, Avarni expects a surge in demand as companies and financial institutions seek to implement decarbonization strategies.
Competing in the ESG Market
Avarni faces competition from larger ESG platforms and carbon accounting platforms. However, the company sets itself apart by allowing organizations to invite suppliers to add and manage their emissions data in the platform for free. This collaborative approach enables Avarni to calculate supplier-specific emission factors and provide stakeholders in the value chain with more accurate calculations and actionable insights.
Enabling Organizations to Plan and Reduce Emissions
Main Sequence investment manager Alezeia Brown emphasizes the importance of accurately measuring emissions, especially Scope 3, in the race towards net-zero. Avarni’s technology empowers organizations to plan and reduce impacts across their entire supply chain, addressing the challenge of imprecise carbon accounting. With the funding secured, Avarni aims to further develop its platform and expand its client base, helping more large enterprises achieve their net-zero goals.