Environmental, social and governance (ESG) software platform FairSupply raised $6.3M in a Series A
The round was led by local VC AirTree, along with Tidal Ventures, Dr. Andrew Forrest’s Minderoo Foundation and early adopter the Queensland Investment Corporation (QIC).
Dr. Andrew Forrest’s Minderoo previously supported the Sydney software-as-a-service startup last September through its Strategic Impact Fund, which supports solutions to complex social and environmental issues.
The new money will be used to launch new products and expand into international markets to address ESG reporting as regulators in the UK, EU, Australia and Japan seek to prevent corporate greenwashing.
Human rights attorney Kimberly Randle and associate professor Dr. Arne Geschke, mathematician and supply chain expert from the University of Sydney, founded FairSupply in 2019. Their company provides corporate and institutional clients with insight into ESG risks across supply chains and investment portfolios, taking into account issues such as modern slavery, Scope 3- carbon emissions, biodiversity and water use risks.
FairSupply has developed two world firsts: Modern Slavery Footprints and Extinction Risk Footprints; and has analyzed more than $750 billion in procurement and investment data for companies such as AustralianSuper, QIC, Synergy Energy and retailer RM Williams.
Randle said the patented software provides the world’s most detailed view of the global economy, mapping as many as 60 billion global supply chains, allowing companies to monitor up to 10 layers deep in their supply chain.
“The global aggregate addressable market for companies that need to identify, address and mitigate ESG risks in their supply chains and investment portfolios is growing rapidly,” she said.
“Despite increased societal and regulatory pressure to report on ESG impact, quantifying and collecting this data has never been more complex, especially when assessing ESG further down the supply chain. And while many companies have good intentions and want to prioritize ESG, the vast majority do not have access to the knowledge or tools to properly assess, understand and make informed decisions to improve their ESG score – but we are going to change that bring in”.
AirTree partner Jackie Vullinghs said accurate and objective ESG data is hard to come by.
“FairSupply allows companies to look beyond the first tier of their supply chain to identify risk, and enables investors to understand risk in their portfolio without relying on a company’s self-reported data, or ESG risk scores and benchmarks that often depend on outdated information. ” she said.
“Over time, FairSupply will help companies redesign their supply chains and make the world a safer place.”
Vullinghs said the investment is also an important milestone for women-led investments in the technology sector.
“There are so many reasons why I am proud to be partnering with FairSupply, and the fact that it was an all-female led investment in a female founder is just another thing to add to the list,” she said .
Queensland Treasurer Cameron Dick said that with the Sunshine Coast and Brisbane offices in Brisbane, FairSupply is a growing local business
“Our investment through the QIC-managed Business Investment Fund recognizes FairSupply’s ability to help clients access comprehensive supply chain data and ESG risk assessments,” he said.
“This is an important opportunity to meet regulatory requirements and work towards ESG goals, but it is also an opportunity for jobs in Queensland, with FairSupply expected to grow local jobs to 30 over the next five years. We are here proud to support a unique product that solves a significant customer pain point, led by outstanding female founders with big plans ahead.”