How One Dutch Startup is Using AI to Cut Retail Emissions Overnight
Amsterdam, Thursday, 18 June 2026.
Root Sustainability’s AI platform slashes retail carbon footprints by automating data collection and generating product-level emissions reports in under a minute—turning months of manual work into instant, actionable insights. With €1 million in new funding, the startup is set to expand across Europe, helping retailers like Hema and O’Neill meet strict EU sustainability rules while driving real CO₂ reductions.
The Retail Sustainability Data Crisis
The retail sector accounts for approximately 25% of global greenhouse gas emissions [GPT], yet most retailers struggle to accurately measure their carbon footprints. Traditional sustainability reporting methods require months of manual data collection and analysis, often producing unreliable results that fail to meet evolving regulatory standards [1]. This data fragmentation creates a critical gap between reporting obligations and actual emission reductions, leaving retailers exposed to both regulatory risks and consumer scrutiny [1].
AI-Powered Carbon Accounting
Root Sustainability, based in Amsterdam, Netherlands [1], has developed an AI-driven platform that consolidates fragmented operational data from retailers into a single, structured sustainability dataset [1]. The platform automates the calculation of product carbon footprints (PCFs) across Scope 1, 2, and all 15 Scope 3 categories, generating results in under one minute per product [2]. This represents a dramatic improvement over manual processes, which typically require days or weeks to produce comparable results [2]. The system uses ISO 14040/14044 and IPCC 2021 methodologies, with emission factors sourced from Ecoinvent, Agribalyse, and Agri-footprint databases [2].
Regulatory Compliance at Machine Speed
The platform addresses three critical EU sustainability frameworks simultaneously: the Corporate Sustainability Reporting Directive (CSRD), Product Carbon Footprint (PCF) standards, and Digital Product Passport (DPP) requirements [1]. By automating data integration, Root Sustainability enables retailers to generate audit-ready reports that comply with CSRD and VSME standards from first use [2]. The system flags estimated data with traceable sources and attachable certificates, creating a transparent audit trail [2]. This capability is particularly valuable for retailers with large product catalogues, where manual compliance processes have proven cumbersome and error-prone [1].
From Data to Decarbonization
Root Sustainability’s platform goes beyond reporting to provide actionable insights for emission reduction. The Scenario Builder tool allows retailers to test the impact of material, energy, and transport changes on their carbon footprint [2]. For example, switching to alternative packaging materials has demonstrated an 18% reduction in product footprints, while combined packaging and transport changes have achieved reductions of up to 24% [2]. The system prioritizes the top 10% of inputs that typically drive 90% of emissions, helping retailers focus their reduction efforts where they will have the greatest impact [2].
Supplier Collaboration Revolutionized
The platform streamlines supplier data collection through targeted requests sent directly from the system [2]. Suppliers receive secure links to input required data, which automatically populates into Root Sustainability’s platform without the need for spreadsheet attachments or email chains [2]. This feature addresses one of the most persistent challenges in retail sustainability: obtaining accurate, primary data from complex supply chains. The automated process creates a complete audit trail while significantly reducing the time and resources required for data collection [2].
Proven Results and Market Validation
Root Sustainability’s technology has already demonstrated measurable impact with major retail clients. Dutch retailer Hema and apparel brand O’Neill are among the companies using the platform to reduce their supply chain emissions [1]. For toy retailer Bon Ton Toys, the platform enabled the calculation of 601 product footprints plus a company-level footprint, supporting B Corp certification and CSRD reporting [2]. The company’s sustainability lead praised the platform’s “clear guidance and traceability,” noting it provided a sense of control over complex sustainability data [2].
€1 Million Funding Boost
On 17 June 2026, Root Sustainability secured additional funding from regional development agency ROM InWest to expand its earlier €1 million financing round [1]. The investment will support accelerated growth across Europe, further development of AI capabilities, and a rebranding initiative to strengthen market positioning [1]. Co-founder Gijs de Mol stated that the funding would enable Root Sustainability to connect more retailers to its platform and continue innovating with AI, including the development of automatic reduction strategies based on cost versus impact analysis [1].
The Business Case for Sustainable Retail
Investment Manager Lotte Nolten-van Hoek of ROM InWest highlighted the strategic importance of Root Sustainability’s data-first approach in the current retail landscape [1]. With consumer goods production responsible for a significant portion of global greenhouse gas emissions [1], retailers face increasing pressure from both regulators and consumers to demonstrate sustainability credentials. The platform addresses this challenge by providing clear, data-driven insights that enable more sustainable purchasing decisions [1]. As Nolten-van Hoek noted, “How clearer the CO2-footprint is of products, how more conscious consumers and companies can make choices and possibly choose for more sustainable alternatives” [1].
Competitive Landscape and Future Outlook
Root Sustainability enters a growing market for sustainability software solutions, competing with established players like SAP Sustainability Footprint Management and newer entrants such as CarbonChain [GPT]. However, the company’s focus on retail-specific challenges and its ability to generate product-level footprints in under a minute distinguish it from broader enterprise solutions [2]. The additional funding will enable Root Sustainability to expand its AI engineering and commercial teams, positioning the Netherlands as a leader in sustainable retail innovation [1]. With the EU’s Corporate Sustainability Reporting Directive requiring thousands of companies to disclose sustainability information starting in 2024 [GPT], demand for automated sustainability solutions is expected to grow rapidly in the coming years.