Southern Company has closed a deal to spin-off Cloverly, an application programming interface (API) for carbon offsetting.
It follows the announcement made by the start-up of the successful $2.1 million (£1.5m) seed round in July, with Southern Company retaining a minority ownership stake in the company.
The funding round was led by Tech Square Ventures with the SB Opportunity Fund (SoftBank) as well as Circadian Ventures, Knoll Ventures, Panoramic Ventures and SaaS Ventures participating as other major investors.
The Cloverly API mitigates the negative environmental impact of common, carbon-emitting activities in real time, on an automated, per-transaction basis.
Using inputs from an organisation’s existing data, it calculates the amount of carbon emitted and purchases the appropriate amount of carbon offsets to neutralise the emissions.
Since launching in April 2019, Cloverly, in partnership with brand partners, has offset more than 55 million pounds of carbon.
Cloverly started as an employee idea for improving customer adoption of renewable energy and carbon neutrality product offerings and recognising a market opportunity beyond utility programmes, the team designed a new approach with new technology for delivering carbon offsets and quickly found customers in the e-commerce space.
Chris Cummiskey, Chief Customer Solutions officer at Southern Company said: “Our employees place customers at the centre of everything we do. Whether that’s in the form of continuous improvement for delivering electric and gas service or innovating around ‘what’s next’ in the energy transition, we are always thinking about ways to create value or curate a better customer experience.
“That is how Cloverly was born – employees taking initiative to build a better way for customers to offset their carbon footprints. We’re incredibly proud of Cloverly’s successes so far and look forward to working with the company and its new investors in this new phase.”