Alaan Introduces Region's First Scope 3 Emissions Estimation
A real-time widget on the Alaan app will allow users to track emissions in real-time.
The UAE's spend management fintech platform for Middle Eastern businesses, Alaan, announced the launch of a first-in-region Scope 3 emissions calculation function for businesses striving for net zero. Alaan has teamed up with Emirati transaction data enrichment and analytics firm, Lune Technologies, to help businesses track and report Scope 3 emissions for each transaction completed using Alaan's corporate card.
Scope 3 emissions result from asset activities that are not owned or controlled by a corporation, but are indirectly affected by the organization's value chain. Roughly 90 percent of the emissions produced by a typical corporation come from Scope 3 emissions according to the Carbon Disclosure Project (CDP). A 2022 sustainability action report by Deloitte found that almost 86 percent of executives had difficulties quantifying Scope 3 emissions.
Alaan will provide this tracking functionality to all of its clients at no additional cost. It has also guaranteed that all of its business cards are carbon neutral.
Transactions are tracked with a real-time widget on the Alaan app, which displays emissions produced from the transaction. Businesses will also have access to a monthly summary emissions report, with the aim of allowing them determine which regions have the highest emissions.
Meanwhile, in collaboration with sustainability specialists, Alaan has produced an emissions reduction playbook, which is designed to assist businesses slash their scope 3 emissions.
The multi-currency spend management platform, which was launched in 2022, lets companies rapidly issue both virtual and physical corporate cards to handle a variety of company expenses, including payments to vendors, government services, e-commerce, and in-store sales.
In January of this year, Alaan raised $4.5 million pre-Series A funding, backed by California-based investment fund Presight Capital and Silicon Valley's Y Combinator, with participation from other angel investors.
A year earlier, the fintech platform raised $2.5 million in an investment round led by 468 Capital, Berlin-based Global Founders Capital and Presight Capital.