Emissions-tracking startups see M&A opportunities
Both the US and the EU have scaled back corporate emissions reporting requirements, which ASUENE CEO Kohei Nishiwada believes is a good time to push for growth.
Despite US financial regulators' decision to abandon corporate emissions reporting obligations, a CEO in the emissions-tracking industry perceives the situation as a growth opportunity. ASUENE, a Tokyo-based company that offers software for managing a company's carbon footprint, recently raised $87 million in funding led by Decarbonization Partners, a BlackRock and Temasek joint venture.
Though this might seem an odd time to invest in emissions-tracking firms, as both the US and EU are reducing or increasing disclosure requirements, ASUENE CEO Kohei Nishiwada believes this is the ideal time to seek out M&A targets. "Except for a few market leaders, [startups in this space] are really struggling for growth," he stated.
He explained that this is why acquiring other companies is so easily achievable. In the US, he added, they can purchase startups at reasonable prices. Over the past two years, ASUENE has acquired eight smaller emissions-tracking startups in the US, EU, and Asia, and they are looking to acquire more in the near future. Their goal is to prepare for an IPO within the next two years.
Written by urgent.news from Semafor's reporting — not their text. Machine-written; read the original for the full account.
