FigBytes has received $14.5 million in funding to enhance its ESG data and reporting platform that helps businesses and other organizations track and manage their sustainability activities.
The Canada-based company says it has received two rounds of funding. The first is a $10 million round of incremental funding from existing investor Quantum Innovation Fund, an affiliate of Quantum Energy Partners, and the other is a $4.5 million debt facility from Silicon Valley Bank.
FigBytes plans to use the financing to expand its ESG Insight Platform in North America, Europe, and India. The company has now received $25 million in total funding.
The company’s software platform helps companies track and report on their ESG goals in areas including carbon accounting, water use, and overall supply chain activities. The FigBytes system automates data tracking and provides complete insight into ESG activities in a single platform.
ESG goals are an increasing focus of many companies. Regulations making reporting more standard, such as potential rules from the Securities and Exchange Commission on emissions and climate disclosures, make having concrete information on a company’s operations more important. There is also an increased focus from investors and customers for companies to be making ESG progress.
A recent report from RSM US shows most middle-market businesses have ESG plans in place, with 70% of them saying they have made a business strategy. Another 69% say they have an executive dedicated to achieving ESG results.
However, progress can be slow, and Accenture research finds more than 90% of businesses have not integrated their technology and sustainability strategies to help meet ESG goals. Financial executives have also been slow to embrace ESG investments, a CNBC survey reveals.
That has led to an increase in ESG management systems to gather information and make sure businesses are on the right track with their sustainability efforts. An EY and Microsoft project is another example of a recent ESG data platform development, which includes carbon tracking and reporting capabilities.
FigBytes says expanding ESG priorities have led to a wealth of information that can make it difficult for companies to capture the most important data and use it to develop ESG business strategies. FigBytes says companies and organizations such as Ford, Akamai, Herbalife, and the State of Minnesota have used its ESG platform.