Making carbon emissions data auditable for financial regulators

This article is a part of Startup Spotlight, a series that features young, up-and-coming startups.

Image credit: Timmy Loen

The founder of Carbon AI wanted to contribute to environmental change but realized the biggest barrier was not a lack of funding but a lack of trust.

As climate data began to influence major financial decisions, he saw a critical gap. The market needed sustainability information that banks and regulators could rely on for lending, risk assessment, and governance.

😟 Problem

Most companies still calculate their carbon footprint using spreadsheets and estimates instead of verified evidence. Scope 3 emissions, which make up around 70% to 90% of total emissions, are the least validated. It creates growing financial and reputational risks as disclosure rules tighten.

As a result, banks and large corporations are forced to base lending and compliance decisions on weak data. Without traceable evidence, processes slow down, audits become more difficult, and trust begins to erode.

💡 Solution

Carbon AI builds trust infrastructure for climate data. The platform uses AI to turn raw business documents into verified carbon metrics. Every number is linked back to its source evidence, supported by an AI system that:

• Reads unstructured files like invoices, utility bills, and fuel receipts.
• Extracts activity data and converts it into emissions calculations.
• Links every output to its source document for traceability.
• Flags missing documents or unusual data to help teams spot gaps before an audit.

Photo credit: Carbon AI

📊 Market size

The initial target market includes financial institutions and large enterprises across Southeast Asia and Hong Kong, including 150 to 200 major banks. They are facing new climate disclosure requirements as regulators shift toward International Sustainability Standards Board (ISSB)-aligned reporting.

Targeting 50 of these institutions represents an annual opportunity of US$2.75 million to US$11 million. The broader serviceable opportunity, including listed companies, is estimated at US$50 million annually.

🤝 Team

• Nick Mah. Co-founder and CEO. Leads product and institutional strategy. Building audit-grade Scope 3 validation infrastructure for financial institutions.
• Fiona Lee. Co-founder and COO. Oversees operations, delivery, and enterprise onboarding across institutional and corporate clients.

🚀 Traction

• Carbon AI has participated in ecosystem programs, including Nvidia Inception.
• The company is currently in an institutional pilot stage with a working MVP.
• It is actively engaging financial institutions and sustainability advisors for pilot deployments.
• The immediate goal is to convert two to three financial institutions into paid pilots.

🏆 Competition

💰 Financials