Sustainability Reporting Software Gets A Boost: Several Vendors Secure Large Investments, Despite Headwinds

Sustainability Reporting Software Gets A Boost: Several Vendors Secure Large Investments, Despite Headwinds

Over the past few years, the market for sustainability software has experienced substantial and continued growth, fuelled by demands for investor-grade data and the rise of regulations like the CSRD. However, the beginning of 2025 brought significant challenges for vendors in this space, as the inauguration of President Trump in the US and the issuance of the Omnibus proposal in the EU created significant uncertainty and market instability. Although we believe the sustainability reporting market is still growing, some businesses paused software purchasing decisions, while many small and medium enterprises are likely to forgo software adoption altogether without a clear regulatory driver. Yet even with this turbulence, several software vendors have announced new rounds of funding in recent months:

• Persefoni, which was launched in 2020 with a focus on carbon management and has since expanded into sustainability reporting, announced $23 million in Series C funding in March 2025. Persefoni is planning to continue to expand its AI offerings, release a dedicated product carbon footprint (PCF)/lifecycle assessment (LCA) tool, and improve its audit and controls capabilities.
  
  
• WeeFin, which launched in 2021 and provides ESG reporting and performance management solutions to financial institutions, announced €25 million in Series B funding in April 2025. With this investment, WeeFin is planning to optimize existing functionality, launch new modules, integrate new data sources and increase its international presence.
  
  
• In April 2025, Tracera – which spun out from Bain & Company’s Founder’s Studio in 2023 as ESG Flo and rebranded to Tracera in January 2025 – announced $12 million in Series A funding. Tracera is planning to scale its platform to help firms comply with sustainability reporting requirements, including Scope 3 emissions.
  
  
• Founded in 2019, sustainability reporting software provider Novisto announced $27 million in Series C funding in May 2025. With this investment, Novisto plans to innovate upon and enhance its sustainability platform and increase its presence in Europe.
  
  

These recent rounds of funding are good news for the sustainability reporting and data management software market overall, indicating optimism from investors that firms will continue to turn to software to manage their sustainability initiatives, even in the face of uncertainty. This reflects the sentiment in our March webinar poll, where 76% of respondents said the Omnibus proposal would have either no impact (56%) or even a positive impact (20%) on their organization’s software spend. While far from the funding highs experienced by some sustainability reporting and carbon management vendors in the early 2020s, the current wave of investments reflects continued – albeit more cautious – confidence from investors that firms will continue to rely on software for sustainability reporting and data management.

For more information about the impact of the Omnibus proposal on sustainability software, please see Strategic Focus: Unpacking The EU Omnibus And Its Impact On Sustainability Software.