Retraced, a Germany-based online platform that enables apparel brands to digitize, trace, and analyze sustainability compliance and risks in their supply chains, announced Wednesday that it had raised €15 million in a Series A funding round. The round was led by Partech, one of the largest tech investment platforms in Europe, with participation from previous investors Alante Capital, Alstin Capital, Samaipata, and F-Log Ventures.

The fashion industry has been under increasing pressure to address the climate impact of its climate and environmental impact. According to the European Commission, fashion is responsible for some 10% of global carbon emissions, more than international flights and maritime shipping combined; consumption of textiles has the fourth highest impact on climate change and the environment, researchers say. In response, the EC has proposed rules aimed at supporting the sustainable management of textile waste, and placing responsibility for the full lifecycle of textile products in the hands of producers. Currently, only 22% of post-consumer textile waste is collected for re-use or recycling, with the remainder often landfilled or incinerated.

The Retraced platform enables brands to determine if their suppliers engage in sustainable practices – and to what extent. Working with over 150 brands, among them giants like Desigual, Victoria’s Secret, Pangaia, Calzedonia, Tom Tailor, Marc O Polo, Alexander Wang, Finisterre – the Retraced platform evaluates the sustainability practices of some 15,000 suppliers around the world.

The company plans to use the funds to increase its global footprint, making supply chain sustainability more efficient and effective, including expanding the use of AI, which provides users with enhanced visibility of supplier risk audits, and provides data-driven suggestions that will enable users to better comply with EU and international sustainability laws and regulations. In addition, the company plans to enhance its European Digital Product Passport (DPP), a tool that enables consumers to better understand the sustainability of the products they buy.

Commenting on the investment, Simone Riva, Senior Principal at Partech, said that her organization was “excited to partner with Retraced as they are tackling the supply chain transparency, one of the most critical challenges on the agenda of Fashion and Textile companies. We believe Retraced has the right team to build a world-class product and become the leading standard for this industry.” Alexander Meyer-Scharenberg, Senior Investment Manager at Alstin Capital said that his organization was “excited” to work with Retraced, after an initial investment – with the company showing “significant progress. We expect that the demand for Retraced’s software will further gain momentum” with the introduction of the EU Supply Chain Directive (CSDDD), which penalizes companies that fail to ensure “adverse environmental and human rights impacts in their operations and value chains.”

Retraced CEO and Founder Lukas Pünder said “This funding round marks a pivotal moment for Retraced. As the regulatory landscape becomes more complex, our mission to simplify sustainability management and make it more effective is more important than ever. With the support of our investors, we are well-positioned to continue developing our platform, empowering fashion brands to meet their sustainability goals and build stronger relationships with their suppliers and their customers.”