Pathzero raises $8.6M in Series A funding

Emission management company Pathzero has raised $8.6 million in a Series A+ round, bringing its total Series A funding to $15.6 million.

L to R_ Charbel Ayoub and Carl Prins.

The round was led by Carthona Capital. Clyde Bank Holdings, Antler, as well as a number of individual investors and internal executives of the company have also invested.

This funding will help the company grow globally and expand its partnerships.

Pathzero's data-driven tool, Pathzero Navigator, is a carbon reporting and analysis solution created specifically for financial institutions to measure, manage and disclose the financed emissions of their investment portfolio. 

Carl Prins, CEO of Pathzero said, “This funding will allow us to double down and deliver an unparalleled experience to those clients while continuing to grow our network both here in Australia and globally through further strategic partnerships.

“Since the roll-out of Navigator we have seen immense interest from the market and have closed some cornerstone deals. This interest reflects the critical need for technology that enables collaboration between businesses to solve the Scope 3 challenge at scale.”

Pathzero Navigator, used by firms including StepStone, HESTA and Carthona Capital, connects financial institutions to their portfolio companies and facilitates the secure flow of carbon information between trusted parties.

This allows portfolio companies to feed their (actual) reported carbon data into Navigator, improving the integrity of financed emissions data and providing the platform and common language required for joint decarbonisation actions.

Pathzero has experienced growth over the past few months following the launch of Navigator and has experienced 1,271 percent year-on-year growth with a slew of new customers.

The company has signed strategic deals locally with several asset managers and superannuation funds, including the national industry superannuation fund for people working in health and community services, HESTA.

Dean Dorrell, partner at Carthona Capital, said, “As regulation intensifies across sectors, we are looking forward to the years ahead as monitoring and reducing financed emissions becomes second nature to financial institutions.”

Moving into 2023 and beyond, it is up to regulators to determine the extent and timing of mandatory financed emissions disclosures by companies.

Until then, the Greenhouse Gas Protocol sets the global standard for defining and accounting for Scope 1, 2 and 3 emissions, and The Partnership for Carbon Accounting Financials (PCAF) Standard builds upon this specifically to set clear methodologies for financial institutions to measure financed emissions.

Together, these provide a solid foundation for financial institutions to use until a more prescriptive regulatory direction emerges.