Today's featured climate startup is EcoRatings, a scalable GenAI solution, providing real-time sustainability insights, drastically cutting down manual processes, such as ratings and life cycle assessments, from months to seconds.

EcoRatings Fast Facts

Headquarters

New York, New York

Product

EcoRatings' unique advantage is the integration of GenAI across the entire ESG workflow, allowing companies to streamline decision-making, ensure compliance, and boost sustainability.

Their GenAI solution bypasses the complexity of ERP-driven environments by extracting dispersed data without painful integrations, making it ideal for large corporations. It also enables real-time emission tracking, even before key decisions, like onboarding suppliers, are made.

Unlike general LLMs, EcoRatings specializes in complex sustainability topics such as life-cycle assessment, ESG ratings, and audits, ensuring depth and accuracy for enterprises.

Funding

• Currently fundraising $2.5M Seed round

• Raised $1MM from early stage investors

Team

EcoRatings’ team brings 60+ years of combined experience in sustainability, technology, and business development:

• Co-founder, CEO: Aditi Balbir

• Co-founder, COO: Aqeel Ahmed

• Co-Founder, CGO: Shruti Anand

Business Model

EcoRatings pricing model includes a one-time ERP integration cost plus a monthly subscription fee based on usage. Their two KPIs are carbon emissions saved and the number of active users.

Market Opportunity

The GenAI market, currently valued at $500 billion, is expected to reach $1 trillion as sustainability adoption becomes mandatory. While generic large language models (LLMs) are being developed by corporations like Microsoft and Google, these lack the depth needed for specialized industries. In contrast, domain-specific LLMs tailored to enterprise needs are emerging but are still in early stages. As sustainability demands grow, the market for GenAI solutions specifically designed for complex, sector-specific challenges is set to rapidly expand.

Traction

• Go-to-market began in March, and since then EcoRatings secured $100K in paid proof of concepts

• Working with key prospects like KPMG, Microsoft, Adani Green Energy, and the Monetary Authority of Singapore

• Grants from Google & Microsoft for server usage

• Part of Accenture accelerator

Why Now?

EcoRatings addresses a critical gap in the ESG space: real-time decision-making. As highlighted by BCG at COP28, compliance alone won't help meet net-zero goals by 2030.

EcoRatings' Generative AI platform is pioneering sustainability decision-making by analyzing ESG risks, opportunities, and Scope 3 emissions instantly. It integrates internal and external data, offering easy-to-understand insights through a chat interface.

This scalable, industry-agnostic platform helps institutions develop decarbonization strategies, perform competitor analysis, and enhance performance across industries and geographies.

Climate Impact

The use of AI is projected to boost global GDP by 4.4%, reduce overall emissions by 4%, and generate 1% more jobs worldwide. EcoRatings contributes to this impact by leveraging AI to enhance sustainability decision-making, helping companies lower emissions and improve efficiency across sectors.

Support EcoRatings

Request an intro if you can support EcoRatings in any of the areas below.

• Investor intros (raising $2.5M)

• Hiring a Product Manager

• Customers

💰 Latest Climate Funding

• Zevero raised a £5,300,000 Seed round

• Puraffinity raised a £6,730,000 Series A

• Exergy3 raised a £1,000,000 Pre-Seed

• Battolyser Systems raised a €30,000,000 Series A