A CO₂- Management Software for the Chemical Industry
According to the World Research Institute, the chemical industry accounts for around 5.8% of global carbon emissions. However, the chemical industry is also the very beginning of almost every value chain, which is why more sustainable solutions are needed. Founded in 2021, cleantech startup AllocNow is driving this process by helping chemical companies make their CO₂-management an integral part of their business model.
Daniel Bochnitschek, CEO of AllocNow, describes the specific approach as follows: "With the help of our software-as-a-service solution, we support chemical companies in automatically calculating the CO₂ footprint of their products (product carbon footprint, or "PCF" for short) and communicating it in an understandable way.
Even before the official foundation of AllocNow GmbH, Daniel took part in one of the 5-HT X-Linker events in February 2021. To this he recalls: "The format was very good. It offered a good opportunity to test our hypotheses and make initial contacts in direct conversation with potential customers."
In an interview with 5-HT, Daniel explains how this event laid the foundation for the current cooperation. Likewise, he highlights the importance of the PCF, provides exciting insights into AllocNow's business model, and explains where he sees potential opportunities in the cooperation with 5-HT.
The importance of the Product Carbon Footprint (PCF)
The PCF includes the total greenhouse gas emissions generated by a product at different stages of its lifecycle. Accordingly, the value provides valuable information on how to find levers to avoid these greenhouse gas emissions. "The PCF is key to integrating carbon management into corporate management and allows sustainability goals to be linked to economic targets," Daniel summarizes.
Transparency as a precondition for future business models
AllocNow's software calculates the sustainability properties of chemical products. It prepares and evaluates the data collected so that it can be understood and communicated in a target-oriented manner. Based on this data analysis, a company can identify adequate options for action and take concrete measures.
"Our software creates unprecedented transparency across the entire product portfolio. The evaluations serve as a basis for managing the change toward sustainable, circular business models," explains Daniel.
Correct actions are based on knowing the correct information
Determining the sustainability footprint of products is usually a complex process. "A lot of data has to be compiled and the calculation then takes place in often very complicated software." Through automation, AllocNow makes this process scalable and much more efficient. In addition to data collection and calculation, however, AllocNow also takes a look at the processes within companies.
"For us, scaling also means making information available to a broader audience. These are those who work strategically and structurally in a company, such as employees in marketing, product management or sales. All of these need to get the relevant information about their products," he emphasizes, adding, "Our software can do just that."
Focus on the chemical industry
Currently, AllocNow works primarily with large corporations in the chemical industry. In the future, however, the company aims to offer a solution to every chemical producer. "We also want to develop services for smaller and medium-sized companies in this industry and are constantly adding new functionalities to our product portfolio."
In addition, Daniel adds, "Our focus on the chemical industry is also a differentiating factor because it allows us to address the specific concerns of this industry. Because we're focused, we're faster and more specific about what our customers need."
A dynamic environment
In addition to companies, legislative bodies are also intensively addressing the issue of sustainability, which is why new guidelines are constantly being added in this area. AllocNow operates in this dynamic field and can react with flexibility to the changing requirements and incorporate them into its application: "Our product continues to evolve with the rapidly growing market requirements, which gives our customers a certain degree of future security. After all, sustainability data is becoming increasingly important for managing business," says Daniel. In this way, AllocNow supports its customers in making their contribution to climate protection and successfully mastering a transformation towards a circular economy.
The additional benefits of AllocNow
Of course, the specific data and requirements of each customer are individual, which is why AllocNow's business model is to address the specific needs of customers with customized solutions. Thus, the young startup has a strong product that is geared to user requirements, for which the particular customers pay licenses. Moreover, there are additional services: "Additionally, we help with the implementation and provide the data transformation services. Once set up, the running software can be operated by the customers themselves. We then ensure regular updates in the following, so that a customer is always up to date, both technically and regulatorily."
A look into the future promises immense potential
"Chemical companies are just at the beginning of the sustainability transformation and it is our mission to accompany them on their journey. The potential is immense when you think about how important sustainability data will become for chemical companies in the future."
AllocNow is continually expanding the scope of its software. "On the agenda are more environmental impact categories and a solution for mass balancing, among others," Daniel adds. "So, there's still a lot we can do."
The opportunities in the collaboration with 5-HT
AllocNow sees the cooperation with 5-HT as an opportunity to address the problems at the meeting point between large companies and startups. "In addition to being able to ask queries or generate further network contacts, both with startups and companies, we are hoping to ultimately have a contact point with 5-HT that we can turn to when there are problems that we can't solve on our own for the time being," Daniel concludes.
Become part of the 5-HT Digital Hub Chemistry & Health
Exchange ideas with innovative startups and future-oriented companies in our network. We look forward to meeting you!