AMDP Proposal–Persefoni

TO: Clark Hansen, CEO, Anima Mundi Development Partners
FROM: Emily Lee
DATE: March 7th, 2024
SUBJECT:  Investment Opportunity–Persefoni

 

In response to your request for identifying investment opportunities in businesses or social enterprises dedicated to green policies, social responsibility, and supporting local and global sustainability efforts, I have conducted extensive research on potential candidates. After thorough consideration, I recommend Persefoni, a Climate Management & Accounting Platform (CMAP), as a promising investment opportunity. Recognized as a leader in the Climate Management & Accounting Platform (CMAP) space, Persefoni’s innovative approach to carbon footprint management and reporting exemplifies our investment criteria, blending profitability with significant environmental impact.

 

In this memo, you will find:

• AMDP Standards for Investment
• Overview of Persefoni
• Critical Appraisals from Industry Sources
• Recommendation for Investment

 

AMDP Investment Standards Overview

 

1.   Triple Bottom Line: The Triple Bottom Line is a sustainability framework that incorporates three dimensions of performance: social, environmental, and financial. This approach urges companies to focus beyond the traditional earnings and return on investment to include social and environmental issues. A business practicing 3BL commits to focus on social and environmental concerns just as they do on profits, balancing people, planet, and profit. (Harvard Business School Online)

 

2.     Corporate Social Responsibility (CSR): CSR involves a business's duty to contribute positively to society, encompassing four key areas: environmental stewardship, ethical conduct, philanthropy, and economic responsibility. This comprehensive approach to business ethics underlines the importance of acting beyond profit generation to address social and environmental issues. (Benevity)

 

3.     Social Enterprise: Social Enterprise refers to organizations that prioritize social and environmental goals as integral to their mission, employing business strategies to achieve these objectives. Such enterprises are characterized by their commitment to social impact, innovation, and the use of market-driven forces to address societal challenges. (Investopedia)

 

4.     Carbon Footprint: A Carbon Footprint measures the total greenhouse gas emissions caused directly and indirectly by an individual, organization, event, or product (National Geographic). It is quantified in units of carbon dioxide equivalents (CO2e) and includes three scopes:

• Scope 1 includes direct emissions from owned or controlled sources.
• Scope 2 accounts for indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company.
• Scope 3 includes all other indirect emissions that occur in a company's value chain, including both upstream and downstream emissions. (Deloitte)

 

Company Overview

 

Persefoni, Inc. stands as a pioneering force in the Climate Management & Accounting Platform (CMAP) sector, distinguished by its innovative Software-as-a-Service (SaaS) solutions. These solutions empower enterprises and financial institutions to fulfill climate disclosure requirements with unprecedented transparency and simplicity. Persefoni has been lauded as the "ERP of Carbon," providing organizations with a consolidated platform for managing their carbon data with the same rigor applied to financial transactions. This unique positioning enables organizations to convert their consumption and emissions data into actionable strategies, facilitating significant strides towards reducing their carbon footprint.

 

Financials and Business Growth

1.     Series Fundings

• Series A: In April 2021, Persefoni raised $9.7 million, bringing its total capital to $13.2 million, with Rice Investment Group and Carnrite Ventures among the investors.
• Series B: By October 2021, the firm secured $101 million, led by Prelude Ventures and the Rise Fund, showcasing a broad base of support from entities like Clearvision Ventures, Parkway Ventures, Bain & Co., and EDF Group, among others.
• Series C-1: August 2023 marked another milestone with a $50 million raise in the Series C-1 round, led by TPG Rise. This round brought the total capital to over $150 million, affirming strong investor confidence and a commitment to sustainability.

 

2.     Partners in Business

Strategic partnerships play a crucial role in Persefoni's growth and market penetration. Collaborations with notable entities such as Mace, Panasonic, SupplyShift, Clearview Group, Workiva, Deloitte, CGI, and Connor Group not only demonstrate the platform's versatility and reliability but also underline its significance in various sectors' sustainability efforts. These partnerships, ranging from construction and electronics to consulting and financial services, illustrate the universal applicability and critical need for robust carbon management solutions in today's business environment.

 

 

Sustainability, Value, and Claims

Persefoni's core values—sustainability, collaboration, innovation, creativity, diversity, and inclusion—are the bedrock of its mission. The company's annual impact report reveals a steadfast dedication to these values, translating into tangible impacts on the environment and society. Persefoni pledges to "transform the landscape of carbon accounting, making it as integral and rigorous as financial accounting.” By facilitating accurate, transparent, and actionable carbon accounting, Persefoni enables organizations worldwide to embark on a path toward significant environmental stewardship and sustainability. (Persefoni)

 

Persefoni's platform has facilitated significant environmental achievements for its clients, including:

• Environmental Stewardship: "Our technology empowers organizations to make significant strides in reducing their carbon footprint, aligning operational practices with global sustainability goals," highlights Persefoni's commitment to environmental responsibility.
• Social Responsibility: Reflecting on its broader impact, Persefoni states, "Beyond carbon, we're fostering a culture of responsibility — from promoting diversity within our teams to supporting community initiatives that drive positive change." This approach underlines the company's dedication not just to environmental metrics, but to meaningful social contributions as well.
• Sustainability Achievements: Persefoni's annual impact report showcases concrete outcomes: "Through our platform, clients have successfully navigated their sustainability journeys, achieving a marked reduction in emissions and waste." These results are a testament to the platform's effectiveness and the company's commitment to its mission.

 

Critical Appraisals from Industry Sources

 

1.     Forrester Analysis

Forrester's comprehensive evaluation of Persefoni through their Total Economic Impact™ (TEI) study elucidates the substantial economic and operational benefits that Persefoni offers its clients.

 

Key highlights from the Forrester report include:

• Cost Savings: The report emphasizes significant reductions in manual labor and associated costs in carbon accounting and reporting processes, with Forrester noting, "Persefoni provides more quality, accuracy, and auditability of our data to form a more granular look at emission factors for the firm...".
• Risk Mitigation: Forrester points out Persefoni's capability in providing "accurate and reliable carbon reporting" which assists companies in mitigating risks related to non-compliance and inaccuracies in carbon disclosures. This ensures companies can navigate the regulatory landscape with confidence.
• Operational Efficiency: The platform's impact is described as enabling organizations to "successfully navigate the changing regulatory landscape, but also establish a framework to develop and maintain future decarbonization strategies".

 

2.     Influence Watch Evaluation

Offers a financial overview, noting Persefoni's "impressive growth trajectory and investor interest." However, it advises potential investors to consider "the scalability of Persefoni's solutions across industries," suggesting a careful assessment of long-term viability.

 

Key highlights from the Influence Watch report include:

• Market Position: Persefoni's leadership and rapid growth within the sector. It is depicted as a company that has quickly established itself as a critical player, with the CEO remarking on the potential for a "Salesforce-type of success" in the field of carbon accounting.
• Financial Health: The series of successful funding rounds discussed in the Influence Watch analysis underlines strong investor confidence in Persefoni.

 

Recommendation for Investment in Persefoni

 

After a thorough analysis of Persefoni's business model, financial health, sustainability impact, and evaluations from reputable industry sources such as Forrester and Influence Watch, I confidently recommend that Anima Mundi Development Partners consider an investment in Persefoni. This recommendation is grounded in the alignment of Persefoni's operations and objectives with AMDP's commitment to investing in socially responsible, environmentally sustainable, and profitable enterprises.

 

Key Considerations:

• Alignment with AMDP Standards: Persefoni's core mission and operational strategy are closely aligned with the Triple Bottom Line principle, emphasizing the importance of balancing financial performance with social and environmental impact. 
• Financial Strength and Market Position: The company's successful funding rounds and strategic partnerships reflect strong market confidence and financial stability. Persefoni's rapid growth and positioning as a leader in the Climate Management & Accounting Platform sector suggest a promising trajectory for future expansion and profitability.
• Impact on Sustainability: Persefoni's platform facilitates significant environmental achievements for its clients, including reductions in carbon footprint and enhanced sustainability reporting. The platform's emphasis on "quality, accuracy, and auditability" of carbon data supports AMDP's goals for investing in companies that contribute positively to environmental sustainability.
• External Validations: Analyses from Forrester and Influence Watch corroborate Persefoni's operational efficiencies, cost savings, and its pivotal role in advancing corporate sustainability practices.

 

Thank you,

Emily Lee

 

Work Cited

·      Harvard Business School Online. "What Is the Triple Bottom Line?" https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line.

·      Benevity. "Types of Corporate Social Responsibility." https://benevity.com/resources/types-of-corporate-social-responsibility.

·      Investopedia. "Social Enterprise." https://www.investopedia.com/terms/s/social-enterprise.asp.

·      National Geographic. "What Is a Carbon Footprint—And How To Measure Yours." https://www.nationalgeographic.com/environment/article/what-is-a-carbon-footprint-how-to-measure-yours.

·      Deloitte. "Zero in on Scope 1, 2 and 3 Emissions." https://www2.deloitte.com/uk/en/focus/climate-change/zero-in-on-scope-1-2-and-3-emissions.html.

·      Persefoni. "Persefoni." https://www.persefoni.com.

·      Foster, Meredith. "Software Spotlight: Simplifying Carbon Accounting with Persefoni Software." Medium,https://medium.com/@meredithfosterjo/software-spotlight-simplifying-carbon-accounting-with-persefoni-software-c050854fda63.

·      TechCrunch. "Climate Accounting Platform Persefoni Raises $101M Series B Led by Prelude and TPG." https://techcrunch.com/2021/10/28/climate-accounting-platform-persefoni-raises-101m-series-b-led-by-prelude-and-tpg/.

·      Persefoni. "Mace Partnership." https://www.persefoni.com/insight/persefoni-mace-built-economy-partnership.

·      Persefoni. "Panasonic Partnership." https://www.persefoni.com/insight/persefoni-selected-for-ghg-reduction-calculation-by-panasonic-electric-works-company.

·      Persefoni. "SupplyShift Partnership." https://www.persefoni.com/insight/supplyshift-and-persefoni-strategic-partnership.

·      Persefoni. "$50 Million Series C1 Announcement." https://www.persefoni.com/insight/persefoni-announces-50-million-series-c1-and-next-ai-advancement.

·      Persefoni. "Annual Impact Report 2023." https://www.persefoni.com/company/persefoni-annual-impact-report.

·      Fast Company. "Most Innovative Companies Energy Sustainability 2023." https://www.fastcompany.com/90847295/most-innovative-companies-energy-sustainability-2023.

·      PR Newswire. "Persefoni Recognized Among First PCAF-accredited SaaS Vendors." https://www.prnewswire.com/news-releases/persefoni-recognized-among-first-pcaf-accredited-saas-vendors-301931244.html.

·      Forrester. "TEI of Persefoni." https://content.persefoni.com/hubfs/TEI_of_Persefoni_%20final%20072022.pdf.

·      Forrester. "The Forrester New Wave™: Sustainability Management Software, Q1 2022." https://reprints2.forrester.com/#/assets/2/2273/RES176324/report.

·      InfluenceWatch. "Persefoni." https://www.influencewatch.org/for-profit/persefoni/.