ESG Flo is an ESG compliance platform that utilizes artificial intelligence to automate the collection and transformation of data into audit-ready metrics. Pulse 2.0 interviewed ESG Flo CEO and founder Patrick Obeid to learn more about the company.
Patrick Obeid’s Background
Obeid is an environmental engineer by background and spent ten years in management consulting at Bain & Company. And Obeid said:
“My focus there was primarily on sustainability and energy efficiency projects, where I advised various governments and manufacturing businesses on strategies for decarbonization. Currently, I am serving as Founder and CEO at ESG Flo, a venture I started during my time at Bain & Company, within its corporate incubator (Founder’s Studio).”
Formation Of ESG Flo
How did the idea for ESG Flo come together? Obeid shared:
“The concept for ESG Flo originated while I was at Bain and Company, amid a strategic exploration for potential startups in the ESG (Environmental, Social, and Governance) sector. Our extensive experience with a diverse range of companies highlighted a significant gap in the market: the need for reliable, auditable, and comprehensive ESG data management. The increasing global demand for transparent ESG disclosure and the inefficiencies faced by sustainability teams in data management led us to develop a SaaS solution that leverages AI to streamline ESG data collection, thereby empowering teams to focus on impactful ESG initiatives.”
Favorite Memory
What has been Obeid’s favorite memory working for the company so far? Obeid reflected:
“A particularly rewarding moment was when we received positive feedback from an early client in the furniture manufacturing industry. Our collaboration significantly alleviated their professional stress and enhanced their operational outcomes, which was immensely fulfilling to hear.”
Core Products
What are ESG Flo’s core products and features? Obeid explained:
“ESG Flo offers a compliance platform powered by best-in-class, AI-powered data ingestion capabilities and comprehensive traceability features for third-party verification. It simplifies ESG reporting, supports responsible decision-making, and facilitates compliance. Key features include:
– Comprehensive overview of disclosure metrics tailored to various reporting frameworks.
– Automated data extraction from various documents and systems.
– Efficient communication channels with data providers.
– A smart emission factor engine for emission calculations.
– AI-driven anomaly detection and error flagging.
– Estimation tools to address data gaps.
– Customizable data visualization and dynamic dashboards.
– An auditor portal for external verification.”
Challenges Faced
Has Obeid faced any specific bottlenecks in your sector of work recently? Obeid acknowledged:
“The ESG industry is rapidly evolving, with daily changes in the regulatory landscape posing significant challenges. For instance, the ongoing adjustments in the CSRD (Corporate Sustainability Reporting Directive) scope and reporting timelines create a certain level of uncertainty. While we strive to help companies navigate these changes, they occasionally create confusion on the solution providers’ side. On top of that – given how nascent the industry is and the need for ESG reporting – a lot of companies still need to be educated on regulatory requirements and effective ways to tackle data processes.”
Evolution Of ESG Flo’s Technology
How has ESG Flo’s technology evolved since launching? Obeid noted:
“We initially focused on automating the collection of Scope 1, Scope 2, and some Categories of Scope 3 emissions data. Over time, we recognized the need for a comprehensive solution that covers data ingestion, transformation, and regulatory-compliant reporting. This led to the integration of our system with a compliance platform, evolving into a holistic tool that aids companies in meeting various regulatory requirements. This new platform is equipped with a system that enables cross-report data filling; this means that data collected for one reporting framework (e.g., CSRD) will automatically populate other reporting frameworks that cover the same metrics (e.g., SEC Climate Disclosure).”
Significant Milestones
What have been some of ESG Flo’s most significant milestones? Obeid cited:
“Some of our significant achievements include securing $5.25 million in seed funding from notable VCs – Rho Ignition, Tola Capital, and Contour Ventures and successfully onboarding our first few enterprise customers, who are now fully utilizing our platform to automate their Scope 1, 2, and part of Scope 3 data ingestion.”
Customer Success Stories
After asking Obeid about customer success stories, he highlighted:
“A noteworthy success is the collaboration with a global workspace provider based in Switzerland. Faced with the challenge of compiling comprehensive water usage data for CDP reporting across their 3000+ offices, ESG Flo:
– Identified key locations for efficient data collection.
– Automated the extraction of water usage data from utility bills in over 30 languages.
– Organized and prepared accurate data for seamless CDP reporting.
– The customer was able to report on CDP, notably improving the percentage of covered data compared to the previous year.”
Differentiation From The Competition
What differentiates the company from its competition? Obeid affirmed:
“ESG Flo sets itself apart with three core attributes: data focus, automation, and auditability. Our platform offers comprehensive AI-powered data extraction, transformation, and validation, along with industry-specific disclosure templates and an audit portal for limited and reasonable ESG assurance.”
Future Company Goals
What are some of the company’s future company goals? Obeid pointed out:
“Our ambition is to establish ESG Flo as the premier ESG compliance solution, a sort of ‘ERP 2.0’ for ESG data. We aim to provide a complete, accurate, and auditable platform for ESG data management.”
Additional Thoughts
Any other topics to discuss? Obeid concluded:
“Our vision extends beyond data: we imagine a business world where ESG conversations are just as important as financial ones, recognizing it as a vital route to address climate and societal issues. We are driven by the goal of contributing to a more sustainable, multi-capitalistic world where value is measured not only in financial terms but also in terms of environmental and social impact.”
