ClimateChoice, the winner of the GREEN START-UP SLAM Los Angeles 2024, captivated with its mission to empower businesses in driving climate transformation through scalable supply chain decarbonization solutions. Lara Obst, who delivered the pitch on stage, hails from Germany, and the ClimateTech company is proudly based in Berlin
Lara, thank you for joining us today. Could you please introduce ClimateChoice and the role your company plays in the global fight against climate change?
Thank you for having me! At ClimateChoice, our mission is to make every purchasing decision a smart climate choice. We achieve this by providing our AI-powered Climate Intelligence Platform, which streamlines climate data acquisition and supplier engagement. This enables companies to accelerate supply chain decarbonization and achieve their net-zero targets effectively.
ClimateChoice focuses on supply chain decarbonization. Can you explain why this area is so crucial for businesses looking to reduce their carbon footprint?
Absolutely. Supply chain emissions, or Scope 3 emissions, typically account for more than 80% of a company’s carbon footprint. Every product or service a company purchases carries an embedded carbon cost. In fact, upstream emissions are often 26 times greater than a company’s direct emissions. Despite their significant impact, Scope 3 emissions are often overlooked, leaving companies with a critical blind spot. With new regulations like the European CSRD coming into effect, more than 50,000 companies will need to report and address these emissions from 2025 onwards. Decarbonizing the supply chain is no longer optional — it’s essential for compliance and leadership in sustainability.
Your company utilizes AI to enhance sustainability practices. Could you describe how this technology contributes to the decarbonization process?
Our AI-driven Climate Intelligence Platform transforms how companies approach supply chain sustainability. By processing vast amounts of data — typically over 100 granular data points per supplier — we create individual ClimateChoice Scorecards for suppliers. These scorecards assess performance across five dimensions: CO2, emission trends over time, climate targets, strategy & governance, and decarbonization efforts. This allows companies to make data-driven decisions, whether it’s selecting high-performing suppliers or supporting underperforming ones to improve. Ultimately, our platform empowers businesses to embed climate-smart choices into their procurement processes, fostering collaboration and driving measurable change.
What are some of the key challenges that companies face when trying to track and reduce emissions in their supply chains? How does ClimateChoice help overcome these obstacles?
One of the biggest challenges is the lack of reliable data. Most companies rely on assumptions, averages, or manual processes like sending spreadsheets via email to gather emissions and other climate relevant information from suppliers. This approach is time-consuming, inconsistent, and let’s be honest, often inaccurate. We tackle these issues by offering a scalable, high-quality solution. Our platform automates data collection from sources like sustainability reports, websites and public databases to create initial climate profiles for suppliers. Companies can then invite suppliers to enrich these profiles, enabling continuous improvement and collaboration. This streamlined process eliminates inefficiencies, increases transparency and sets the stage for effective Scope 3 strategies.
Could you share a success story of how a company has successfully reduced its carbon emissions with the help of ClimateChoice?
A great example is Lenovo’s collaboration with ClimateChoice to tackle Scope 3 emissions through the Lenovo 360 Circle initiative. Using our Climate Intelligence Platform, Lenovo launched the GHG Emissions & Strategy Community Benchmarking program to engage its global partner network. This program enabled their partners to share emissions data securely, benchmark their climate performance, and receive tailored feedback, fostering transparency and collaboration across the supply chain. As a result, Lenovo achieved a Gold rating for its climate leadership, while its partners collectively reached a Silver-equivalent rating – a testament to the collective impact and alignment towards shared sustainability goals.
This initiative showcases how data-driven insights and partnership can drive systemic change. Lenovo not only advanced its own sustainability goals but also united its partners around shared goals, and with that inspired its ecosystem to embrace joint climate action. By recognizing high-performing partners and supporting others with actionable improvement plans, Lenovo turned a complex challenge into an opportunity for collective progress in achieving meaningful emissions reductions.
ClimateChoice offers a scoring methodology to assess supplier performance in sustainability. How does this scoring system work, and how does it help businesses make better decisions?
Our scoring system translates complex climate data into actionable insights. Suppliers receive a ClimateChoice Score, with levels ranging from Bronze to Gold based on their performance. This visual labeling system helps companies quickly assess their supplier base, identify strengths, and pinpoint areas for improvement. By using these scores, businesses can develop targeted strategies—such as supporting underperforming suppliers or leveraging high performers as benchmarks. This fosters collaboration and drives consistent emissions reductions across the supply chain.
The process of decarbonizing an entire supply chain can be complex. What are some first steps companies should take when starting this journey?
The first step is achieving transparency. Many companies lack visibility into their Scope 3 emissions, making it nearly impossible to set reduction targets or track progress. Start by assessing emissions using average data, then engage suppliers to refine this data with exact figures. Once transparency is established, companies can develop tailored decarbonization strategies. Prioritizing collaboration with suppliers and aligning on shared goals are key to making progress efficiently and effectively.
Many businesses are grappling with new regulations around sustainability. How do you see these changes affecting companies in the near future, and how can ClimateChoice support them?
New sustainability regulations are reshaping markets globally. They require companies to take responsibility for their entire value chain, positioning the supply chain as a central driver of strategic change. ClimateChoice helps businesses lead this transformation. By leveraging our platform, companies can turn compliance challenges into opportunities, strengthening relationships with suppliers and creating long-term value while reducing emissions.
ClimateChoice has built partnerships with organizations like T-Systems, Lenovo, and o2 Telefónica. How do these collaborations help scale your impact, and what role do partnerships play in achieving your mission?
Partnerships are essential for scaling impact. Studies show that just eight supply chains account for 50% of global emissions. Collaborating with industry leaders enables us to accelerate decarbonization along these critical supply chains. With active platform users in over 140 countries, we’re shaping a global network of climate-conscious companies. Together, we’re proving that collective action is not only possible but also effective in driving meaningful change.
What do you see as the most important trends in the next 5 to 10 years for businesses in sustainability?
One major trend is closing the “sustainability skill gap.” Many leaders lack the training, knowledge, and tools needed to navigate climate data and leverage emerging technologies effectively. To address this, we focus on user-friendly solutions that don’t require advanced sustainability expertise. Our platform simplifies complex processes, fostering collaboration across departments and empowering companies to act decisively.
What role do you believe transparency plays in achieving climate goals, and how does ClimateChoice promote this within the supply chain?
Transparency is foundational for accountability and progress. Without accurate and transparent data, companies can’t comply with regulations, track improvements, or build trust with stakeholders. At ClimateChoice, we make transparency actionable. Our platform ensures that businesses not only meet reporting requirements but also use climate data as a strategic asset to drive real-world change.
ClimateChoice raised $2 million to expand its platform. How does this investment help accelerate your mission, and what are your next big goals?
This funding allows us to scale our platform across industries and geographies, enhancing global supply chain coverage. With the support of impact-driven investors like Gutter Capital, we’re refining our business model and doubling down on solving customer challenges. Our next big goal is to make climate-smart supply chains the standard, not the exception.
As a founder, how do you balance the pressures of scaling a business with the urgency of addressing climate change?
The beauty of our business model is that the more we scale, the greater our impact. For us, business growth and climate action go hand in hand, creating a positive feedback loop that drives both success and supply chain decarbonization.
Finally, what message would you like to share with other entrepreneurs who are working on innovative solutions to combat climate change?
Change takes time — both in business and in fighting climate change. My advice is to break big challenges into manageable steps. Focus on progress, not perfection, and you’ll be amazed at how quickly momentum builds. Stay resilient, and remember that every small step contributes to a much larger impact.
Picture @ClimateChoice
Thank you Lara Obst for the Interview
Statements of the author and the interviewee do not necessarily represent the editors and the publisher opinion again.
