Takeaways

• Carbonfact has acquired Berlin-based sustainability software company Vaayu to strengthen product-level environmental data capabilities for the fashion industry.
• The combined platform will support fashion brands in meeting growing sustainability reporting regulations such as Digital Product Passports and California’s SB253 law.
• The deal expands Carbonfact’s reach to more than 300 apparel and footwear brands globally.

Paris-based climate tech company Carbonfact has acquired German sustainability software provider Vaayu in a move aimed at helping fashion brands better track and manage the environmental impact of their products.

The acquisition brings together two companies focused on improving sustainability data for the fashion sector. Carbonfact said the combined platform will create one of the industry’s most detailed product-level environmental datasets, helping brands respond to tightening climate disclosure and reporting rules.

Founded in 2021, Carbonfact develops carbon management software for apparel, luxury, and footwear companies. Its tools help businesses measure emissions, prepare sustainability reports, and reduce environmental impact across their operations. The company’s customers include brands such as On, Ganni, The North Face, Burton, and Marc O’Polo.

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Vaayu, founded in Berlin in 2020 by former Zalando sustainability executive Namrata Sandhu, provides AI-powered environmental impact software. Its platform helps retailers and fashion companies measure emissions linked to products, packaging, logistics, and supply chains.

The deal comes as fashion companies face mounting pressure to improve environmental transparency. Regulations such as the Digital Product Passport in Europe, France’s Eco-Score system, and California’s SB253 climate disclosure law are pushing brands to provide more detailed product-level sustainability data rather than relying only on company-wide reporting.

Carbonfact said the combined business will offer a broader environmental data platform covering carbon accounting, product impact measurement, eco-design tools, decarbonization planning, and sustainability reporting.

The company added that the acquisition significantly strengthens its database. The new platform will include more than 150,000 fashion-specific emission factors and primary data from over 7,000 textile factories worldwide. Together, the two companies will serve more than 300 apparel and footwear brands.

Marc Laurent, Founder and CEO of Carbonfact, said the fashion industry needs a stronger data infrastructure to meet evolving sustainability expectations.

“The fashion industry has a data problem that no amount of ambition can solve without the right infrastructure,” Laurent said. “Upcoming regulations require a shift from corporate-level data to product-level data. He added that the acquisition combines two major datasets that can provide brands with a more reliable foundation for environmental reporting and emissions reduction efforts.

Vaayu founder and CEO Namrata Sandhu said the partnership would help scale access to detailed climate data for fashion and retail companies.

“We started Vaayu to give retail and fashion companies the granular, product-level climate data they need to actually decarbonize, not just report on it. Carbonfact shares that conviction, and together we can deliver it at the scale this industry now requires,” Sandhu said.

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The acquisition highlights the growing demand for technology platforms that can help fashion brands navigate complex sustainability regulations while improving supply chain transparency and emissions management.

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Source: ESGtoday