The Carbon Management Software (CMS) industry has heated up following the newly proposed US SEC rules, which, if implemented, will make it mandatory for public companies to report their carbon footprints. After this proposal came out in March 2022, the industry raised USD 680 million and USD 617 million in Q2 and Q3 2022, respectively.

Five CMS companies raised a total of USD 82 million in disclosed funding in Q4. This was a decrease of 54.9% YoY and 86.6% QoQ. Despite  this, funding for the full year was up 3.9x (USD 1.6 billion in 2022 compared with USD 406 million in 2021).