Supply Chain Sustainability Platform Higg Raises $50 Million
Consumer goods industry-focused sustainability insights platform Higg announced today that it has raised $50 million in a series B financing round led by technology growth investor Silversmith Capital Partners and Galvanize Climate Solutions, a decarbonization solutions-focused investment platform recently launched by Tom Steyer and Katie Hall.
The financing comes as corporate sustainability efforts increasingly turn to focus on companies’ supply chains, which often represent their primary source of impact and ESG risk. In many sectors, for example, value chain emissions outside of companies’ direct control, or “Scope 3” emissions, typically account for the vast majority of their climate footprint, and materials are often sourced from countries with high risk of exposure to labor and human rights violations.
Higg CEO, Jason Kibbey said:
“In this new era of expectations, more businesses will be required to have credible impact data about their supply chains. “The truth is that measuring owned operations is easy. For consumer products companies, the challenge is obtaining accurate data on the non-owned factories that make the goods—and on the materials and products themselves.”
Launched in 2019 as a public-benefit corporation to build software for assessment methodologies developed by the Sustainable Apparel Coalition, Higg has expanded its platform to include advanced analytics, tracking, and disclosure tools, enabling companies to assess value chain sustainability performance in areas including carbon, water, energy and labor impacts. The company’s solutions help companies design more sustainable products, expand worker well-being, uncover risks and areas for improvement, identify more sustainable suppliers, and engage customers and stakeholders with data-backed claims and reports.
Todd MacLean, Managing Partner at Silversmith Capital Partners, said:
“What the Higg team has done in marrying powerful and easy-to-use software with proprietary sustainability data has the opportunity to transform the footprint of entire industries. In this case software is not only eating the world, but changing it for the better.”
Higg said that the proceeds from the financing will be used to accelerate the delivery of the company’s technology solutions, and Higg’s expansion into new consumer goods categories such as outdoor, automotive, toys, and home goods.
Steyer said:
“While we urgently need improvements in carbon and clean energy, Higg is accelerating transformation across the board. Reimagining sustainability within consumer goods is an interconnected challenge, and Higg’s technology addresses this throughout the supply chain.”