How To Better Navigate The TCFD: Manifest Climate’s $30m Series A Funding

On March 31, the Toronto-headquartered start-up Manifest Climate, announced the completion of a C$30 million Series A funding round, co-led by BDC Capital Women in Technology Venture Fund and Climate Innovation Capital. The funding will help the Canadian firm to scale its solution and expand into the European and Asian markets.

Manifest Climate’s offering consists of a SaaS platform that leverages data from a repository of climate disclosures and best practices. The solution uses AI to evaluate customers’ “climate profiles” and assess them against the TCFD framework, as well as benchmark the performance against competitors- helping to address gaps in their business strategy. The platform takes the data analysis a step further, recommending practical and tailored actions to improve customers’ disclosures and facilitate reporting, whether about financial risk, sustainability or ESG. The offering also includes educational materials to engage employees in achieving the firm’s climate goals. At the end of 2021 Manifest Climate acquired the climate-related financial risk management newsletter Climate Risk Review, to enhance its Market Intelligence module and provide clients with relevant news in the climate change policy space to inform their strategy. Among Manifest Climate’s clients are financial institutions like Bridge Investment Group, First Capital and Scotiabank.

The announcement was quite timely as it came just a week before the official introduction of the mandatory Task Force on Climate-Related Financial Disclosures (TCFD) requirements in the UK. From April 6, an initial 1,300 organisations in the UK, comprising the largest traded firms, banks and insures, as well as private firms with more than 500 employees and £500 million, will have to align with TCFD recommendations and produce TCFD-based annual statements. Although the UK is the first country in the G20 to legally mandate TCFD requirements, many more are expected to follow. In late March the US Securities and Exchange Commission (SEC) released its proposed climate disclosure rules, establishing a framework that builds on the TCFD and the GHG protocol, covering publicly listed companies. The Canadian government also announced the introduction of mandatory climate disclosures aligned with the TCFD framework for banks and insurers in 2024.

In the context of constantly evolving frameworks and standards around climate-related financial disclosures, a growing number of firms will soon be under – if they are not already- regulatory pressure to align with the TCFD. After the announcement from the SEC, Verdantix estimated $6.7 billion of expenditure on consulting, legal, assurance and digital solutions in the next three years. The future of software providers with dedicated TCFD platforms, such as Manifest Climate, and other tech innovators that focus on climate risk and carbon management, like FigBytes and Persefoni, is looking brighter than ever.

For more information on climate-related financial disclosures, take a look at the Verdantix Strategic Focus: Mastering TCFD Disclosures.

ESG How To Better Navigate The TCFD Manifest Climates 30m Series A Funding

Alessandra Leggieri

Analyst, Verdantix

Alessandra Leggieri is a research analyst specialised in ESG & Sustainability. Her background is in Biology (BSc Imperial College London), with a focus on Environmental Sciences. Prior to joining Verdantix she completed a Master's degree in Environmental Technology with Distinction. Her thesis project looked at biodiversity-friendly pest management decisions in communal gardens, which involved a collaboration with the Royal Borough of Kensington and Chelsea. She has experience with both quantitative and qualitative data analysis, using R and NVivo.