Environmental, social and governance (ESG) software platform, FairSupply has raised $6.3 million in a Series A
The round led by local VC AirTree, alongside Tidal Ventures, Dr Andrew Forrest’s Minderoo Foundation and early adopter the Queensland Investment Corporation (QIC).
Dr Andrew Forrest’s Minderoo previously backed the Sydney software-as-a-service startup in September last year through its Strategic Impact Fund, which backs solutions to complex social and environmental issues.
The fresh cash will be used to launch new products and expand to international markets to address ESG reporting as regulators in the UK, EU, Australia and Japan look to prevent corporate greenwashing.
Human rights lawyer Kimberly Randle and University of Sydney mathematician and supply chain expert Associate Professor Dr Arne Geschke founded FairSupply in 2019. Their company provides corporate and institutional clients with visibility over ESG risk in supply chains and investment portfolios, taking into account issues such as modern slavery, Scope 3 carbon emissions, biodiversity and water use risk.
FairSupply has developed two world firsts: modern slavery foot printing and extinction-risk foot printing; and has analysed more than $750 billion in procurement and investment data for companies including AustralianSuper, QIC, Synergy Energy and retailer RM Williams.
Randle said the proprietary software offers the world’s most detailed view of the global economy, mapping a staggering 60 billion global supply chains so companies can monitor up to ten layers deep in their supply chain.
“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,” she 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”.
AirTree partner Jackie Vullinghs said accurate and objective ESG 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.“
Vullinghs said the investment is also an important milestone for female-led investment in the technology sector.
“There are so many reasons why I’m proud to be partnering with FairSupply, and the fact it was an all female-led round investing in a female founder is another to add to the list,” she said.
Queensland Treasurer Cameron Dick said that with Sunshine Coast and Brisbane offices in Brisbane, FairSupply is a growing local business
“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,” he 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.”