Doconomy Raises €34m to Expand Carbon Tracking Tools

Doconomy, a Swedish fintech startup focused on climate solutions, has secured €34 million ($36.9 million) in a Series B funding round. Leading European banks, including UBS and Commerzbank, participated in this financing round, aiming to enhance tools that help customers measure the carbon footprint of their spending.

The round was co-led by UBS Next and CommerzVentures, the venture arms of UBS and Commerzbank, respectively. New investor S&P Global joined existing shareholders Motive Ventures, PostFinance, and Tenity in the funding.

Founded in 2018, Doconomy partners with organisations like Boston Consulting Group, Mastercard, and the United Nations Framework Convention on Climate Change to quantify the environmental impact of financial transactions. One of its key offerings, the AIand Index, converts every transaction into its CO2 equivalent and is used by over 100 financial institutions in more than 40 countries.

CEO and co-founder Mathias Wikstrom said the new funds will support Doconomy’s expansion into North America and the development of new products. “We aim to enable every bank worldwide to engage their clients in ESG [environmental, social, and governance] initiatives,” Wikstrom stated. He emphasised the interconnectedness of environmental and social issues in addressing climate change.

Doconomy’s recent activities include the acquisition of Dreams Technology, a platform leveraging behavioural science to enhance customer engagement and financial well-being. Despite its progress, the firm has faced criticism from climate change skeptics, notably from right-wing commentator Jordan Peterson. Wikstrom responded by underscoring the importance of education to counter misinformation.

Michael Baldinger, Chief Sustainability Officer of UBS, highlighted the strategic investment in Doconomy as part of the bank’s commitment to innovation in sustainability. “Our investment underscores our focus on providing data and actionable insights for our clients to make informed choices and drive change,” Baldinger said.

Doconomy’s funding round reaffirms the growing interest in climate fintech, especially as global governments pressure companies to meet ESG targets and reduce carbon emissions.