Ecochain, a Dutch climate tech that enables manufacturers to produce more sustainable products using Life Cycle Assessment (LCA) software, announced that it has raised €3 million. The funding round was led by the Impact Fund Phase2.earth and supported by its existing investor, Volta Ventures. The funding also includes a loan from the Dutch bank ABN AMRO.
The funding comes at a time when the European Union has announced a new directive that addresses misleading sustainability claims and greenwashing through new rules and common criteria for making ecological claims and labels.
Recent EU regulations, such as the Corporate Sustainability Reporting Directive (CSDR) will require approximately 50,000 companies to report on sustainability matters. In parallel, there is an increasing trend of conscious consumerism demanding sustainable products.
Ecochain’s solution solves the lack of data and insights currently faced by product-producing companies. Operating within the framework of Life Cycle Assessment (LCA), a science-based methodology that measures the environmental impacts associated with a product’s entire life cycle, its software provides easy and accessible data insights, hotspot detection, and facilitates product modeling to reduce its environmental impact.
Frans-Willem de Kloet, CEO at Ecochain, says: ‘’According to the UNEP, the extraction and processing of materials, fuels, and food make up about 50% of total global greenhouse gas emissions and more than 90% of biodiversity loss and water stress. LCAs can be used to measure the impact on several levels and cover multiple impact areas beyond carbon, such as water and land use. At Ecochain, our mission is to provide companies with the most accessible and actionable LCA software to empower them to make an ongoing sustainable impact’’.
The company has grown significantly over the past years. According to their CEO, the funding will allow Ecochain to expand its marketing and technology departments towards its vision: that every time a company creates a product, they measure its environmental impact to ensure that the world is in a better place than it was before.
Boudewijn Poelmann, co-founder of Impact Fund Phase2.earth, states: “Ecochain has the potential to become the world-leading platform for Life Cycle Assessment (LCA) and environmental footprinting. Ecochain helps companies to measure the environmental product impact and reduce it accordingly. As the Dutch saying goes: meten is weten (to measure is to know) and we believe Ecochain has developed the best software for companies to quantify their footprint. Through this investment, we have taken a step forward to strengthen our portfolio in Climate Tech. Their software is the vehicle to achieve a more fair, transparent, and sustainable world.”
Founded in 2011, Ecochain operates internationally in industries such as packaging, construction, apparel, food and beverage, and consumer electronics, among others. They recently joined the Unilever Supplier Climate Program and some of its clients include Philips or Dura Vermeer.
“Ecochain has been at the forefront of sustainable practices for several years. With the recent launch of Mobius, the easy-to-use LCA software, Ecochain empowers professionals in different manufacturing sectors to effectively communicate the environmental impact of their products and services to clients, stakeholders, and consumers. As a supporter, we are excited to see their continued impact on the manufacturing industry and their mission to make high-quality LCAs understandable for all.” says Sander Vonk, Partner at Volta Ventures, an Amsterdam-based seed, and early-stage VC firm.
Read the orginal article: https://www.eu-startups.com/2023/06/amsterdam-based-climate-tech-ecochain-secures-e3-million-to-software-support-the-eu-fight-against-greenwashing/
