The company has built what they consider “the world’s first sustainability ecosystem”. By involving companies, suppliers, municipalities and other government institutions in a digital infrastructure the company enables all kinds of organizations to gather, monitor and report on sustainability data. The customers have on average reduced their CO2 emissions by 21% per unit of revenue.
THIS SPRINGBOARD IS RELATED TO THE DANISH SUBSIDIARY, AND IT IS HELD IN DANISH.
The company has taken a data driven approach to sustainability, to make the accounting and reporting streamlined and precise. The idea is for each actor in the market to contribute to the distribution of data by engaging in the digital infrastructure. We ensure that transaction data can be streamed automatically and therefore easily be audited for ESG reporting, monitoring and analyses. The uniqueness comes from the ecosystem in which customers, suppliers, municipalities and governmental institutions engage. No one is working in silos, but the platform enhances the development of SDG 17 – partnerships.
There are already some EU directives put in place to ensure that companies with over 250 employees do sustainability (ESG) reports. From 2024, the EU directive (CSRD) and the Taxonomy will entail many more companies to report on these matters. The challenge, however, for companies is to collect accurate data. The solution help companies to collect data in an automatic and uniform way. Thus, allowing them to not only do their reports once a year but to constantly monitor and analyze their operations, projects and targets.
The solution is a cloud-based platform, a digital data infrastructure, where all actors in the market can connect and stream data. The solution covers asset management, data collection, analysis and ESG reporting.
The business model
The business model is divided into a subscription model and consulting hours. Currently, the subscription has a base fee depending on the size of the companies, where there are possibilities to also pay for extra features and add-ons. The consulting part relates to creation of reports and improvements based on data analysis.
The company has entered Denmark as the first market for expansion. Thereafter and somewhat organically, we will grow into the other Nordic markets, as our customers pull us there. This should be developed in 2023. Thereafter, in 2024 we aim for establishing a broader European presence, before moving into the North American market in 2025. Currently we have 6,000 users and we aim to reach 25,000 users in 2025.
Management and team
The company is listed on Nasdaq First North and is owned by approximately 300 shareholders. The founding family owns the voting rights, through A-shares. The belief is that everyone are on this journey together, why everyone should be able to be part of it. It aligns with the vision and mission to develop a sustainability infrastructure where everyone works together. The company has 28 employees, of which two are located in Copenhagen.
The company has saturated the Icelandic market, by covering approx. 95% of suppliers and over 75% of the companies. Besides the private companies, the company also works together with municipalities like Reykjavik City, the central bank, the coast guard as well as ports and airports. The product is mature, and the proof-of-concept is in place. However, the expansion to new markets has posed new challenges that we would love to address in this springboard.
Questions for the panel
1. Pricing – discussions to focus on pricing models for the subscription and consultancy businesses?
2. Partnerships – which strategic partners would be relevant for the company to consider?
3. Internationalization – the company needs to build an ecosystem and establish an international presence before its’ competitors, consequently a strategy for internationalization is relevant to discuss?