Bono

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Measuring a company's carbon footprint used to be complex and expensive, handled only by specialized consulting firms.

However, technological advancements have simplified this process, making it accessible to a broader range of businesses.

Let's dive in.

Explain it like I'm five

Nicolas Bodek understood how hard and expensive it was for companies to measure their carbon footprint.

This led him to start Bono, a startup making it more accessible and affordable for all businesses in Latin America to measure and reduce their carbon footprint.

Companies categorize greenhouse gas emissions into three scopes:

• Scope 1: Direct emissions owned or controlled by the company.

• Scope 2: Emissions caused indirectly by the company.

• Scope 3: Indirect emissions are mainly caused by the company’s clients and suppliers.

Bono offers a platform that analyzes, connects, and finances industrial carbonization across all defined scopes.

• Measure: Bono helps companies understand and map their carbon footprint.

• Marketplace: They design a decarbonization plan and offer a marketplace where companies can quote decarbonization services and products.

• Financing: They also offer financing options with partners so companies can execute their decarbonization plans quickly.

Mexico ranks as the 12th leading carbon emitter globally. Under the current administration, our country’s approach to climate change has faced criticism for prioritizing fossil fuel use and dismantling climate-related policies and institutions.

Despite these setbacks. Mexico has set ambitious goals in its updated Nationally Determined Contribution (NDC), submitted in November 2022. The country aims to reduce greenhouse gas emissions by 35% by 2030.

The ABCs

• Industries: Climate Tech

• Headquarters: Mexico City

• Year Operations Started: 2022

• Team Size: 5

• Raised: Undisclosed

• Business Model: SaaS, Marketplace, Financing

Background check

What we like:

• Market: Carbon management tools are expanding rapidly with increasing regulatory pressures and consumer demand for sustainable practices. Bono’s platform is designed to help businesses of all sizes and sectors, allowing them to offer their services to a broad customer base.

• Clients: According to the founder, most companies they have onboarded have encouraged their suppliers to use the platform, creating a positive loop for them. This has allowed them to expand into 7 countries in a short amount of time.

• Regulation: Only facilities emitting more than 25,000 tonnes of carbon dioxide in Mexico must report their emissions to SEMARNAT annually. As the trend moves towards greater transparency, Bono could benefit from the increasing focus on carbon reporting and accounting.

Roadblocks:

• Priorities: Implementing carbon reporting is not a priority for most businesses. From an owner’s perspective, other needs are more important than measuring their carbon footprint.

• Government: Climate tech businesses do not solely depend on government-imposed laws but can be impacted positively or negatively by the administration in office.

• Differentiation: Bono is not alone in this space. In the US, two major companies stand out: Watershed and Peresfoni. Both have reached a valuation of over $1 billion dollars and could easily offer their services to Mexican companies.

The Architects

• Nicolas Bodek, Co-Founder & CEO.

• Harun Dogus, Co-Founder & CTO.

Merchant of the Week

Every morning, we start our day with Whitepaper, a 5-minute daily newsletter.

It's been our go-to source for staying ahead of the game on all things business in Mexico and beyond.

If you're keen on gaining valuable insights into the Mexican business world and economy, it's a must!

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Last Poll Results

Thanks for reading. Have a great week, and we’ll see you soon.

—Manuel & Diego