Datamaran lands $13.3M in funding led by Fortive to assess ESG risks for companies and financial institutions
With the growing threats of climate change, businesses and big corporations no longer focus on short-term profit but also on their impacts on the environment and the world at large.
Over the past few years, some of these companies are now adopting non-financial factors and a more stakeholder-centric approach to doing business using what is known as ESG (or Environmental, Social, and Governance). ESG is a series of environmentally sustainable practices undertaken by corporations and institutions to reduce their negative environmental impact while continuing to make profits.
Investors and businesses alike are increasingly applying ESG as criteria for making decisions about their company’s operations, global impacts, and what they invest their money on. For example, companies are now divesting from fossil fuels projects to investing in renewables like solar and wind.
With the rising importance of ESG, corporate leaders also understand they have gaps in their risk, reporting, and board oversight processes. That’s why one tech startup has made it its mission to help companies and financial institutions assess their ESG risks.
Enter Datamaran, a London, England-based tech startup that provides an ESG risk management software platform to help companies identify and monitor their ESG risks and opportunities. Datamaran is currently the only automated solution available to help corporate leaders take ownership of their ESG strategy.
Today, Datamaran announced it has raised $13.3 million (£11.7 million) in a Series B funding round to grow the company’s team in the United States and meet the needs of the expanding ESG insights market. The round was led by Fortive, with participation from American Electric Power.
Founded in 2014 by CEO Marjella Alma, Jean-Philippe Lecourt, and Jerome Basdevant, Datamaran is the only software analytics platform in the world that identifies and monitors external risks, including ESG. In addition to being trusted by blue-chip companies and top-tier partners
“After years of expansion, organic growth and achieving profitability, we see even more potential for the strategic insight we provide. This investment provides us with the capital necessary to match the growth opportunities that are increasing at an ever-faster pace as customers, employees and regulators double down on their ESG expectations,” said Marjella Lecourt-Alma.
This new round of funding will also enable additional product innovation and help ensure Datamaran remains at the cutting edge of the shift towards ESG as a strategic business tool.
“Coming from strategic partners and clients, this funding is a ringing endorsement of Datamaran’s benefits and our ambition. It demonstrates not only that they realize this technology is integral to their future success, but also their eagerness to share this valuable tool with a wider range of organizations. With this backing, Datamaran will accelerate the process of taking ESG to the C-suite and meet growing demand.”
Over the last year Datamaran has seen a surge in interest from the C-suite audience, which now makes up over 40% of revenue and continues to scale rapidly. Datamaran is the only automated solution available to help leaders take ownership of their ESG strategy. Using patented technology, Datamaran identifies and monitors over 400 external risk factors – including environmental, social and corporate governance (ESG), innovation and technology, and geopolitical issues – on an ongoing basis by scanning the regulatory, media and corporate disclosure environments.
“Datamaran’s unique technology ensures businesses have the actionable and quantifiable data they need to prepare for the rapidly changing expectations of society from corporations,” said Justin McElhattan, VP & Group President of Fortive’s Environmental, Health & Safety Group. “Datamaran brings transformative results to businesses around the world – including Fortive – to accelerate progress for a more sustainable future.”
“The ability to gain deeper insights into ESG and how it affects our business is increasingly important. The ESG landscape is constantly evolving; having access to data-driven information about how and when those changes are occurring allows us to identify emerging issues and trends that could impact AEP. Datamaran’s platform supports monitoring of material ESG issues at any time,” said Sandy Nessing, AEP’s chief sustainability officer.