The Carbon Management Software (CMS) industry picked up in Q2 2022, after a relatively slow quarter in Q1. Startups raised a total of USD 680 million in funding, the highest raised in a single quarter, underpinned by EcoVadis’ mammoth USD 500 million private equity round. However, QoQ growth remained slow, ranging from 2% to 18% across various growth indicators and startup matrices (compared with 3%–23% in Q1). Nevertheless, CMS startups continued to make progress during the quarter through key customer and service collaborations as well as new product innovations. 

Seven companies raised a total of USD 680 million in disclosed funding in Q2. This was the highest funded quarter for the industry and was 3.7x higher than the previous one.