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New York-based HowGood, a company that provides a software-as-a-service (SaaS) platform to empower companies with sustainability insights, announced today that it has raised $12.5 million in a new round of financing.

As climate change continues to wreak havoc around the world, organizations are pushing initiatives to make their products and business operations more sustainable. The aim is to measure environmental and social impact (from carbon emissions and biodiversity to human impacts of supply systems), but obtaining the data associated with these aspects requires the tedious task of sorting studies and individual research. Moreover, there is no standardized methodology for obtaining information.

HowGood’s sustainability intelligence

HowGood was launched in 2007 to collect all of this data in one place and give food industry players an easy way to understand their current impact, as well as see where they can improve their operations to become more sustainable. The company first evaluated products in grocery stores, but later expanded to business units and later launched Latis, a dedicated sustainability intelligence solution.

Backed by what HowGood claims to be the world’s largest database of ingredient and product sustainability, Latis performs instant analysis of over 33,000 ingredients, chemicals and materials and provides detailed process insights. product R&D.

“With a simple, user-friendly SaaS platform, food brands and retailers can see the impact of any ingredient, place of origin or sustainability standard,” said Alexander Gillett, CEO and co-founder of HowGood, at Venturebeat.

“Parameter information covering environmental impact, labor risks and animal welfare (among others) is readily available throughout the product formulation process. Team leaders can also drill down to analyze ingredient impact data at the micro level to view the total impact of their portfolio on metrics such as annual carbon footprint, water consumption or risks inherent in the job, track their progress towards goals and benchmark their brand against industry standards and major competitors,” he added.

Overall, the solution leverages over 550 independent data sources and certifications to deliver UPC-level impact data on over two million products, all at the level of individual ingredient analysis. This can then be used by brands to determine how and where to make changes throughout the lifecycle of food products to improve holistic sustainability. It also helps them meet growing consumer demand for transparency and environmentally friendly production.

Growth

Particularly in the wake of the SEC’s new climate disclosure proposal, HowGood has seen significant demand for its solution. The company’s annual revenue has doubled over the past year, with the arrival of major food and beverage retailers, suppliers and restaurants. It also counts five of the top 10 CPGs, including Danone North America, among its clients.

However, HowGood is not the only player in this space. SourceMap, SustainLife, SupplyShift and Ecovadis also drive sustainability in products and operations for businesses, but according to HowGood their data is not as comprehensive.

“We are the single, comprehensive solution on the market that provides food brands and retailers with actionable insights into the impact of products…, using data that is not available on any other platform. We also continue to expand the metrics available in Latis through strategic research and implementation, most recently with One Planet Business for Biodiversity (OP2B) Regenerative Agriculture Metrics and Eco-Score and EU Nutri-Score,” Gillett pointed out.

Plan ahead

With this round of funding, led by Titan Grove, HowGood plans to grow its internal teams, enhance the sustainability watch product, expand industry partnerships in the US and Europe, and venture beyond beyond the food vertical.

“This funding round will allow HowGood to build our ability to onboard and support more customers as we triple our team this year, as well as continue to add truly unique and comprehensive datasets to the Latis platform to enable companies to make impactful changes throughout their value system,” Gillett said. “New features added to Latis include enhanced capabilities for Scope 3 greenhouse gas reporting, as well as ‘significant expansion of supplier-specific data and sustainability claims on packaging.’

According to a recent IBM survey, data and AI have an important role to play in helping companies achieve their sustainability goals. Notably, up to 66% of companies said they are currently implementing or planning to apply AI to achieve their sustainability goals. They are turning to AI to help them make their operations more efficient (37%), provide verifiable data on environmental performance (33%) and automate their data collection and reporting efforts (29%) .