Redaptive, an energy efficiency startup, announced on Monday it raised $200 million from the Canada Pension Plan Investment Board shortly after it scrapped plans to go public.
The San Francisco-based company works with businesses to better conserve energy where it’s not needed, lowering utilities costs and making it easier for companies to meet various state- and country-wide goals to reduce the carbon footprint.
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The company runs an efficiency-as-a-service platform, or EaaS, using software to gauge how much energy is actually being used and making recommendations on how to better utilize that power. It can also install new lighting, water services or air conditioning that better track usage and meet carbon emission targets.
“This investment is consistent with our focus on investing in best-in-class companies that are supporting the global energy transition by innovating in energy efficiency, sustainable energy, and the deployment of data solutions,” said Bruce Hogg, managing director and head of sustainable energies at CPP Investments.
VCs are a big fan of conserving energy
Funding for energy conservation startups has seen massive activity in 2022 despite the general private market slowdown. We’ve reported on Swell Energy’s $120 million raise in November, which uses real-time data to make decisions on power and electricity. More people visiting the office on Mondays than Wednesdays? Maybe Wednesday doesn’t need as much power.
2022 is sustainable energy’s second-best year yet, and for good reason. The European Union is expected to impose strict tariffs on imports from countries with high emissions, which will impact American businesses. The Biden Administration concocted a similar proposal that would impose tariffs on metal made in high-emission settings (which would also favor domestic metal production).
Companies from Microsoft to Apple have pledged to go either carbon neutral or carbon negative in the next few years to offset emissions that come from making their products. Over 350 companies have signed the Climate Pledge to reach net-zero carbon by 2040.
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