ESG technology company FairSupply raises $6.3m in Series A

ESG technology company FairSupply raises $6.3m in Series A

FairSupply co-founders Dr Arne Geschke (left) and Kimberly Randle (right), with AirTree partner Jackie Vullinghs (centre). 

Environmental, social and governance (ESG) software platform FairSupply has raised $6.3 million in a Series A raise led by AirTree as it looks to address corporate greenwashing on a global scale.  

The raise also received backing from Tidal Ventures and the Queensland Investment Corporation (QIC), as well as Andrew ‘Twiggy’ Forrest’s philanthropic investment vehicle Minderoo Foundation.

Founded in 2019 by human rights lawyer Kimberly Randle and mathematician Dr Arne Geschke, FairSupply has mapped more than 60 billion global supply chains so that companies can monitor Scope 3 carbon emissions, modern slavery, biodiversity and water risk within their network.

To date, the Service-as-a-Software (SaaS) has analysed more than $750 billion of procurement and investment data for Australian clients such as AustralianSuper, the QIC, Synergy Energy and iconic retailer, RM Williams.

FairSupply CEO and co-founder Kimberly Randle said she founded the company because she felt the best way to drive change was to help the private sector make more informed purchasing and investment decisions in what was becoming an increasingly complex space.

"The global total addressable market for companies required to identify, address and mitigate ESG risks in their supply chains and investment portfolios is rapidly increasing,” Randle said.

‘However, despite increased societal and regulatory pressure to report on ESG impact, quantifying and gathering this data has never been more complicated, especially when assessing ESG further down the supply chain.

“And while many companies have good intentions and want to prioritise ESG, the vast majority don’t have access to the knowledge or tools to properly assess, understand and make informed decisions to improve their ESG rating - but we’re changing that”.

Related story: Pathzero raises $8.6m amid a rush by fund managers to measure financed emissions

Based in Sydney, FairSupply works by analysing data submitted by clients - whether it be listed equities, private equities, infrastructure assets or sovereign bonds. Once submitted, the platform allows users to conduct an in-depth analysis by supplier, investment, country or industry to help identify areas at greatest risk in any given portfolio.

After the risks are identified, users can set thresholds and parameters, as well as select areas for detailed analysis. Audit reports and supplier questionnaires are so provided.

According to US investment firm Capital Group’s EGS Global Study 2022, more than a quarter of the 1,130 investors surveyed said ESG was now central to their investment approach.

The study also found that 42 per cent of global investors were pushed to focus on ESG due to client expectations and reputational concerns.

AirTree Partner Jackie Vullinghs said ESG was a top priority for investors and corporates, but accurate and objective data is difficult to find.

“FairSupply enables companies to see beyond the first tier of their supply chain to identify risk, and allows investors to understand risk in their portfolio without relying on a company’s self-reported data, or ESG risk scores and benchmarks that often rely on outdated information," she said.

Over time, FairSupply will help companies re-architect their supply chains and help make the world safer.“

Queensland Treasurer and Minister for Trade and Investment Cameron Dick added with established offices in Brisbane and on the Sunshine Coast, FairSupply was primed for continued growth in Queensland.

“Our investment through the QIC-managed Business Investment Fund recognises FairSupply’s ability to assist clients in accessing comprehensive supply chain data and risk assessments in the all-important ESG space,” Dick said.

“This represents a significant opportunity to meet regulatory requirements and work towards ESG goals, but it’s also an opportunity for Queensland jobs, with FairSupply expected to grow local jobs to 30 over the next five years.

“We’re proud to back a unique product solving a significant customer pain-point, led by outstanding female founders with big plans ahead.” 

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