Sept 20 (Reuters) – Software platform Datamaran on Tuesday reported an 11.7 million pound ($13.3 million) funding round led by Fortive ( FTV.N ) amid growing interest from companies and financial institutions in assessing environmental, social and governance (ESG) issues. Accidents.
The Series B funding round, led by industrial products maker Fortive and participation from American Electric Power ( AEP ) ( AEP.O ), will be used to grow the company’s team in the United States and complement the ESG insights market.
PepsiCo ( PEP.O ), Walgreens ( WBA.O ) and Dell also participated in the round, the group said in a statement.
Sign up now for unlimited access to Reuters.com
Datamaran’s technology identifies more than 400 external risk factors that could affect a company’s value, including those related to technological innovation and geopolitical issues, by scanning regulatory, media and corporate disclosures.
CEO and co-founder Marjela Lecourt-Alma said the new funding will help accelerate the company’s expansion into more corporate boardrooms, which currently account for more than 40% of its revenue.
“This funding from strategic partners and customers underpins Datamaran’s benefits,” she added.
Inflows into ESG funds have increased in recent years. Against this background, regulators are starting to introduce mandatory sustainability disclosures for companies and funds.
Some businesses, however, have been accused by activists of “greenwashing” by advertising programs that do nothing to reduce overall greenhouse gas emissions.
“The ability to gain a deeper understanding of ESG and how it affects our business is increasingly important,” said Sandy Nessing, AEP’s chief sustainability officer, noting the “constantly evolving” ESG landscape.
($1 = 0.8797 pounds)
Sign up now for unlimited access to Reuters.com
Reporting by Julie Portale Editing by Simon Jessop and Mark Potter
Our Standards: The Thomson Reuters Trust Principles.
