In Short

• Government regulations as regards sustainability reporting are getting tighter.
• The platform uses AI to collect and analyse ESG data.
• Tanso is being used by over 300 companies in more than 40 countries.

Tanso, an ESG data management startup based in Munich, Germany, has secured €12 million in a Series A funding round to expand its operations to other countries.

Not only does the money be used for expansion, but the company also wants to hire new talent, and develop new software features with a focus on supply chain management, compliance, and risk analysis.

Tanso Co-founder and CEO Till Wiechmann said: "With the new funding, we’ll now double down on: Expanding Tanso with new modules for supply chain, compliance, and risk; Implementing new use cases for Tanso AI Copilot and deeper integration; Growing our ecosystem partner network in DACH and beyond; Establishing Tanso as the European category leader for industrial companies."

The funding round led by henQ and Fortino Capital also saw participation from existing investors Capnamic and UVC partners.

Founded in 2021, the startup has a cloud-based platform for industrial manufacturing companies to manage their environmental and compliance requirements.

Their software has been designed to simplify how businesses handle carbon accounting, ESG (Environmental, Social, Governance) reporting, and sustainability data management.

By leveraging artificial intelligence (AI) tools, the platform makes it easier to collect, calculate, and improve environmental metrics, thereby reducing costs and simplifying compliance processes for businesses.

Why Is This Important?

There is mounting pressure on companies to uphold their environmental responsibility of late. New EU regulations, such as the Corporate Sustainability Reporting Directive (CSRD), require large and medium-sized companies to include verified sustainability reports as part of their financial disclosures.

Many businesses are running from pillar to post to get the best data tracking systems for carbon emissions and other sustainability indicators.

Compounding government regulations is the demand made by large clients in sectors like automotive, food, and chemicals for environmental reporting from their suppliers, requiring the suppliers to verify their environmental commitments and measurable progress in this regard to stay competitive in the respective market.

This is where startups like Tanso come to the fore with their innovative platforms. Tanso says they help create a central dashboard that pulls information from existing systems. Businesses can use this to plan and supervise their sustainability projects, manage investments in carbon reduction or decarbonisation, as well as track performance using data-driven insights, making reporting easier and simplifying the understanding of environmental impact.

As of now, more than 300 companies from over 40 countries use Tanso for carbon accounting and ESG data management, including well-known clients such as Kärcher, Duravit, Paulaner Group, and Goldbeck.

Ends/

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Source: EU-Startups