The Rise of Carbon Accounting and Emissions Reporting with Watershed Technology
By Marcus Greene
April 12, 2025
Watershed Technology, based in San Francisco, made headlines by securing $100 million in its Series C round, catapulting it to the forefront of climate tech funding movement in April. This significant investment has led to the company being valued at a staggering $1.8 billion.
Specializing in assisting organizations in tracking their greenhouse gas emissions and other environmental impacts through advanced software, Watershed plays a pivotal role in identifying emission hotspots and collaborating with clients to minimize their environmental footprint. Noteworthy clients that rely on Watershed’s services include Walmart, BlackRock, General Mills, Stripe, and Bain Capital.
Founder Taylor Francis emphasized the importance of building a climate-conscious economy through collective corporate action, underscoring Watershed’s mission to lead the way in climate accountability initiatives.
As emissions disclosure regulations become increasingly common worldwide, governments like California are enacting laws mandating companies to disclose their Scope 1, 2, and 3 emissions starting in 2027. Parallel to this, the EU is enforcing similar requirements for businesses trading on the European stock exchange. Non-compliance with these regulations could result in hefty fines or legal repercussions for companies, highlighting the urgency for adherence.
The recent passage of the bipartisan PROVE IT Act by the Senate Environment and Public Works Committee raises the bar further, requiring the Department of Energy to evaluate the carbon footprint of select products like cement, fertilizer, iron, and plastic manufactured in the U.S. A comparison will be drawn between the carbon footprints of domestically produced goods and imported equivalents, with potential carbon taxes levied on products with higher footprints.
Watershed’s latest Series C funding of $100 million coupled with the escalating legal landscape and climate-induced disasters underscore the critical link between climate action and the company’s long-term viability.
Co-founder Francis emphasized the shift towards climate-conscious business practices, echoing the sentiment that climate considerations are no longer optional but integral to business operations.
In a competitive landscape, companies like Greenly, Emitwise, and Aclima are challenging Watershed by providing similar carbon accounting and strategic consulting services to assist companies in achieving net-zero emissions targets.
With the aim of bolstering its capacity to deliver corporate climate accountability services such as emissions quantification and sustainability reporting, Watershed plans to utilize their Series C funding for expanding their solution offerings.
Key investors in Watershed’s Series C round include prominent names like Sequoia Capital, Neo, Kleiner Perkins, Greenoaks, Galvanize Climate Solutions, and Emerson Collective, underlining the growing interest in climate tech and sustainability solutions.
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Marcus Greene
Contributing Writer
GreenBiz Group