Supply chain visibility provider project44 announced Thursday that it has raised $80 million in a funding round led by Generation Investment Management and AP Moller Holding.
The latest round takes project44’s valuation to $2.7 billion, up 12% from its last funding round in January. The company said the additional funding will spur several key initiatives, including upgrading a system to measure supply chain emissions globally across all modes of transportation.
“[Project44] is the world’s largest visibility company – measured by the number of carriers, geographies covered and transportation modes,” Jett McCandless, founder and CEO of project44, told FreightWaves. “Because of all these modes of transport and geographies, we are in a unique position to help reduce Scope 3 emissions from supply chains. We are working aggressively to address this issue and we will be increasing funding of our sustainability budget.”
Chicago-based project44 operates an end-to-end visibility platform that tracks more than 1 billion shipments annually for over 1,200 companies in industries including manufacturing, automotive, retail, food and beverage, and oil and gas, according to a press release.
According to project44, supply chains are responsible for 60% of global emissions. Most emissions in the supply chain fall under Scope 3: indirect emissions from activities and assets not owned or controlled by shippers. According to the consulting firm Accenture, only 16% of companies are currently measuring their Scope 3 emissions at an advanced level.
By measuring Scope 3 emissions in the supply chain, project44 aims to empower shippers and carriers and enable their customers to meet the new carbon reporting requirements of the International Maritime Organization 2023 and the proposed European Union Sustainability Reporting Directive to fulfill Union.
McCandless said the Scope 3 measurement system works for multimodal and truck emissions.
“Our system, we have a digital twin of ourselves [client’s] Ocean-going ship, from her primary and secondary engines that propel the ship, and then from the auxiliary generators and things like that,” McCandless said. “Often when people calculate emissions for most modes of transport, they say point A to point B, what time is it, and then take an average. What you will find is that the average is completely wrong and the amount of emissions is usually underestimated.”
Project44’s system captures current, waterway, actual real-time speed and actual route, not just potential miles from point A to point B.
“If you can take all of that with a digital twin of the engines, you can calculate exactly how much carbon is being emitted from those ships,” McCandless said.
Project44 uses a similar method to measure Scope 3 emissions from full truckloads and track their carbon footprint.
“We have to send 4.3 million individual shipments through Project 44 every day — shipments worth about $220 billion. That’s a lot of commodities that we can have a significant impact on,” McCandless said.
Joy Tuffield, Growth Equity Partner at Generation Investment Management, said project44’s ability to accurately measure Scope 3 emissions is what prompted her to invest in the company.
“Despite decades of investment in supply chain technology, scope 3 emissions remain largely a black box for companies,” Tuffield said. “In project44, we see a compelling opportunity to bring rigorous measurement and climate responsibility to logistics.”
In addition to AP Moller Holding and Generation Investment Management, the funding round also included Goldman Sachs Asset Management, TPG, Emergence Capital, Chicago Ventures, Sapphire, 8VC, Sozo Ventures and Omidyar Technology Ventures.
Project44 also again won first place in FreightWaves’ annual FreightTech 25 Awards, announced Thursday at the F3: Future of Freight Festival in Chattanooga, Tennessee.
Project44 has been part of FreightWaves’ FreightTech 25 awards since its inception in 2018 and has never ranked lower than #2. Last year, project44 ousted Amazon Freight from the #1 position.
“It’s a real honor and we’re honored to receive an award like this,” said McCandless. “As consumers, we all appreciate that Amazon has transformed logistics in a meaningful way. You can imagine my surprise last year when we dethroned Amazon to move up to the #1 position. You can imagine my nervousness this year so I was very pleased, honored and humbled to be awarded the #1 position again.”
Watch: FreightWaves Announces First Place Winner of the 2022 FreightTech 25 Awards.
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