Why We Invested in Neutreeno: Engineering Circular Supply Chains with the Right Data

You can’t manage what you can’t measure.

This has been the mantra around carbon emissions measurement and management for the last decade. Over that time, we have seen several companies attempting to properly measure Scope 1, Scope 2 and Scope 3 carbon emissions––with various levels of (in)accuracy and friction. However, most importantly, none that are actionable across entire value chains.

To properly measure and address emissions across complex value chains, you need (1) primary data from suppliers, (2) deep knowledge of various processes, energy intensity and embodied emissions in materials, (3) scientific models that make this collection and calculation easy, and (4) actionable insights for businesses and asset owners to lower their carbon footprints.

The growth of the carbon measurement and management market is partially driven by regulatory scrutiny, but for Closed Loop Partners’ Ventures Group, we think the biggest opportunity is in helping asset owners reduce costs, risks and waste in their supply chain, made possible through studying resource flows and emissions simultaneously.

Today, up to 70% of greenhouse gas emissions are linked to the extraction, processing and manufacturing of materials within our current linear production and consumption model. Measuring and managing carbon emissions uncovers opportunities for increased circularity within supply chains––a key driver of supply chain resilience and greenhouse gas avoidance. After reviewing hundreds of companies in this space, we believe Neutreeno is best positioned to help address these embedded emissions and move industry towards circular models, given the team’s scientific credentials.

Through collaboration with University of Cambridge researchers, Neutreeno has developed industry-leading emission models that solve the fundamental challenges of data collection, accuracy and actionability across the major industrial sectors.

Dr. Spencer Brennan, CEO and Founder of Neutreeno combined his Physics PhD research in high-resolution measurement systems with his chemical engineering background to build models that require 10x less data to generate precision emissions reports, and provide actionable insights about how a given supplier can decarbonize. Neutreeno’s advanced product material and energy flow analysis builds on University of Cambridge Professor, Jonathan Cullen’s, 15 years of research to decode manufacturing processes, drive efficiency, integrate circularity and decarbonization across multiple tiers of the value chain, and deliver critical emissions insights and visualizations.

Neutreeno offers a game-changing solution that seamlessly integrates into existing workflows. Built on rigorous, science-based foundations for calculating emissions, their model delivers precise, actionable insights for immediate decarbonization across the value chain. Plus, with ROI analysis, businesses can confidently prioritize the most impactful levers, driving faster and smarter decisions to advance more circular, decarbonized supply chains.

About Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The company is comprised of three key business segments: its investment arm, Closed Loop Capital Management; its innovation center, the Center for the Circular Economy; and its operating group, Closed Loop Builders. Closed Loop Capital Management manages venture capital, buyout private equity and catalytic private credit investment strategies. The firm’s venture capital group, the Closed Loop Ventures Group, has been investing early-stage capital into companies developing breakthrough solutions for the circular economy since 2016. The Closed Loop Ventures Group’s portfolio includes companies developing leading innovations in material science, robotics, agritech, sustainable consumer products and advanced technologies that further the circular economy. Closed Loop Partners is based in New York City and is a registered B Corp. To learn more, visit closedlooppartners.com

About Neutreeno

Utilizing proprietary process networks and engineering models, Neutreeno identifies and eliminates emissions at source. Neutreeno partners with leading businesses wanting to move beyond carbon accounting and take decisive action to decarbonize Scope 3 emissions. Learn more here.

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.