Klappir takes to the global stage with Nefco funding

Republished from Nefco Case Study

By empowering transparent reporting, Klappir’s software enables organisations to monitor and track their environmental and other sustainability-related actions and make informed decisions to drive meaningful change towards a sustainable future. Nefco has provided Klappir with funding to help boost speed to market and international expansion.

Corporate sustainability disclosure requirements have been trending across the globe, especially since the Paris Climate Accords of 2016 put in place commitments that member states must meet. This led to a significant rise in new and updated laws and regulations, notably the EU’s Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), which large, listed companies in Europe are required to comply with already in 2024.

This growing emphasis by regulators on sustainability reporting requirements means that it is crucial for organisations to be able to easily and effectively track essential metrics related to sustainability. Compliance with increasing sustainability demands also provides companies with insight into their actions, leading to potential savings through sustainable practices such as energy or waste management.

Additionally, by disclosing their environmental goals transparently, companies can better align their business strategies with science-based climate and biodiversity targets and help create a more resilient and sustainable world.

However, navigating the reporting requirements on different topics can be tricky. Sustainability managers have their work cut out for them in handling large volumes of data, often from multiple sources. Integrating this data, ensuring its accuracy and analysing it is a resource-intensive task. This is why it is crucial to incorporate the right software solutions for data collection, analysis and reporting.

Klappir (the name means ‘bedrock’ in Icelandic) has continued to improve its offering. In 2015, its customer base stood at 70 – now it is helping over 700 companies monitor and report on their sustainability data and actions. Customers are drawn from diverse industries, including aviation, shipping, retail and the financial sector, as well as government agencies and municipalities.

The challenges of creating a more sustainable world can only be solved on a societal level and be driven by cooperation. That is why Klappir has put the UN’s Sustainable Development Goal 17 – Revitalising the partnerships for sustainable development – at the heart of its mission.

As part of this mission, Klappir allowed the general public to take part in its sustainability journey by publicly listing the company on Nasdaq Iceland. There are now over 300 shareholders.

Jón Ágúst says: “Sustainability reporting is still something of a novel market. So, securing funding through venture capital could be a challenging task for a company in this area. Having a reliable funding partner like Nefco is crucial. They prioritise the environment, focusing on impact rather than just return on investment.”

Funding to enable expansion across Europe and North America

Nefco have signed a convertible loan agreement with Klappir. As an Iceland-based software company in the emerging field of sustainability reporting, Klappir knew it wanted to increase its focus, not only to other Nordic countries but also to the whole of Europe – where sustainability reporting requirements are expanding in local legislation in EU and non-EU countries.

Jón Ágúst explains: “A key achievement made possible by the funding is that we are now ready to tackle Europe-wide markets. We can do this because we have the knowledge and the people. Nefco’s financing meant we could hire the right people for our ambitions.”

Auli Nikkilä, Investment Officer at Nefco, has been involved with Klappir throughout the partnership. She explains: “Working with Klappir on its expansion was meaningful and interesting for Nefco from the start. As many companies are currently facing stringent environmental reporting requirements, software solutions such as Klappir’s are much needed.”

Klappir’s plans for future growth are bold and go beyond Europe’s borders. Jón Ágúst says: “We will grow our partner network across Europe within the next two years. Then, we intend to expand to North America. Sustainability compliance and effective sustainability management are essential for companies there too.”

Partnering with Nefco provides more than financing

Key to Klappir’s expansion has been finding a partner in Nefco.

As Jón Ágúst emphasises: “Many companies flounder because they don’t have a partner that’s aligned with the owners’ vision and principles. Nefco is a funding partner that takes the time to understand the business and is on board with the mission. This type of financing can be the key to success for green companies.”

An integral part of Klappir’s collaboration with Nefco is its decision to join the pioneering Biodiversity Pilot Programme. The two-year pilot initiative works with companies to create actions for biodiversity and share expertise on strategies that have positive outcomes for nature. One of the results of the pilot programme was the development of a biodiversity data guide that helps Klappir provide insights into upcoming reporting disclosures as well as existing biodiversity data sets and tools.

Jón Ágúst discusses its impact: “Our membership of Nefco’s Biodiversity Pilot Programme has provided us with valuable insights. We have regular meetings with Nefco at which there is continuous dialogue and support. We are constantly learning about biodiversity and what positive actions we can take.”

Republished from Nefco Case Study: Klappir takes transparent environmental reporting to the global stage with Nefco funding