(Bloomberg) -- Carbon accounting startup Normative raised 31 million euros ($31.5 million) from investors including Hong Kong tycoon Li Ka-shing, as businesses come under greater pressure to better measure their environmental impact.
Li’s Horizons Ventures participated in the Swedish firm’s series B funding round as a new investor, according to a statement. European growth investor Blume Equity led the round, which also drew existing backers ETF Partners, 2150 and Future Five.
Stockholm-based Normative works with companies to calculate their carbon footprints. It will use the new money in part to develop new products to help track emissions, according to Chief Executive Officer Kristian Ronn.
“In the European Union in the next few years, there will be around 50,000 businesses that will need to account for carbon emissions,” Ronn said in an interview. “The vast majority will be for the first time ever.”
Normative has found that companies estimate there to be an average error rate of as much as 40% when measuring their emissions. The need for more accurate reporting will only increase as the world moves toward a net zero economy.
Normative last raised funds with a 10 million-euro round in 2021. Blume Equity, a European investment manager that’s raising a debut fund, has already invested in health and environmental-related businesses.
©2022 Bloomberg L.P.