Watershed

Watershed

Cloud platform for corporate carbon management

Overview

Watershed offers a subscription-based software platform to manage corporate climate programs. It helps companies measure carbon footprints, set and track emissions reductions, fund carbon removal projects, and report progress toward net-zero by 2030. The platform collects and analyzes emissions data, supports governance around climate initiatives, and generates internal and external reports, with optional carbon offsetting and removal services. Its end-to-end approach for large brands differentiates it by combining measurement, goal tracking, project funding, and reporting in one platform to meet regulatory, investor, and stakeholder expectations, with the goal of helping clients reach sustainability targets and align with net-zero timelines.

About Watershed

Simplify's Rating
Why Watershed is rated
B
Rated B on Competitive Edge
Rated A on Growth Potential
Rated C on Differentiation

Industries

Data & Analytics

Enterprise Software

Social Impact

Company Size

501-1,000

Company Stage

Series C

Total Funding

$184.7M

Headquarters

San Francisco, California

Founded

2019

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Simplify's Take

What believers are saying

  • 2026 AI launches materially reduce manual work, strengthening renewals and expansion inside accounts.
  • The 2026 Carbon RFP targets 800 corporate buyers, including 90 Fortune 500 firms.
  • Watershed's customer base includes Airbnb, Carlyle, FedEx, Visa, and Dr. Martens in 2026.

What critics are saying

  • Sweep and Persefoni target Watershed's core market with simpler, cheaper, specialized workflows.
  • Customers can bypass Watershed using Workiva, EcoVadis, or in-house AI reporting stacks by 2026.
  • If enterprise climate budgets shrink, Watershed's premium managed-program model faces existential churn risk.

What makes Watershed unique

  • Watershed won Verdantix 2026 leadership and IDC MarketScape leadership for carbon accounting.
  • Its AI agents cut sustainability data cleaning time 80% across test customers in 2026.
  • EcoVadis partnership anchors supplier-specific Scope 3 data into Watershed's audit-ready accounting stack.

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Funding

Total Funding

$184.7M

Above

Industry Average

Funded Over

3 Rounds

Notable Investors:
Series C funding is usually for startups that are doing well and are looking for more money to fuel major growth, such as acquiring other companies, expanding into global markets, or launching new product lines. Investors typically include larger venture capital firms and private equity.
Series C Funding Comparison
Above Average

Industry standards

$50M
$50M
Medium
$62M
SeatGeek
$100M
Oura
$100M
Watershed

Benefits

Health Insurance

Dental Insurance

Vision Insurance

401(k) Retirement Plan

Unlimited Paid Time Off

Paid Parental Leave

Fertility Treatment Support

Mental Health Support

Growth & Insights and Company News

Headcount

6 month growth

1%

1 year growth

0%

2 year growth

2%
Associated Press
Jul 22nd, 2026
Watershed publishes open framework for measuring AI emissions, reveals four-fold range in estimates

Watershed has published an open framework for measuring greenhouse gas emissions from corporate AI use. The sustainability AI platform developed the methodology with Stanford University, Tsinghua University, and companies including Block and Okta. The framework reveals significant variation in AI emissions estimates. A company spending $100,000 annually on a frontier AI model could generate between 3.2 and 13.4 tonnes of CO2 equivalent, depending on data quality—a more than four-fold range. The methodology uses a functional unit of kgCO2e per million tokens and includes model training, inference, data centre overhead, and embodied hardware. It proposes standardised disclosure standards to improve accuracy, noting that non-production benchmarks can overstate inference energy by 4 to 20 times. The framework identifies practical reduction levers: model selection, region selection based on grid carbon intensity, and prompt optimisation.

Associated Press
Apr 21st, 2026
Watershed launches AI agents cutting sustainability data cleaning time by 80%

Watershed, a sustainability AI platform, has launched new AI agents designed to automate manual sustainability tasks that typically take five months. The agents have reduced data cleaning time by 80% amongst test customers, with one company completing a five-hour project in 20 minutes. The agents can process utility bills, identify emissions hotspots, reformat data files, generate ESG report drafts and analyse product carbon footprints. Previous Watershed AI releases have reduced data ingestion time by 87% or more for customers. Watershed is also launching an AI Fellowship, an eight-week programme for sustainability leaders to develop AI expertise. The initiative addresses low AI adoption amongst sustainability practitioners, with only 43% reporting AI use compared to 88% of corporate employees overall. Applications are now open, with the first cohort announced in May.

PR Newswire
Mar 12th, 2026
EcoVadis partners with Watershed to close Scope 3 emissions data gap with new carbon calculator

EcoVadis, a sustainability ratings platform, has partnered with climate AI company Watershed to address the Scope 3 emissions data gap. The collaboration allows enterprises to replace broad emissions estimates with actual supplier-specific data, enabling more accurate carbon accounting and sourcing decisions. EcoVadis serves as the primary data engine for direct supplier reporting, whilst Watershed provides carbon accounting and analysis for audit-ready reporting. The partnership integrates with EcoVadis' newly launched Product Carbon Footprint Calculator, a free tool available in 13 languages covering 12 industrial sectors. EcoVadis now assigns one of four Carbon Data Reliability Levels to all supplier-reported Scope 1-3 metrics, cross-referencing data against supporting evidence. The company counts Johnson & Johnson, L'Oréal and Unilever amongst its 175,000-plus business users.

FrenchWeb
Jun 3rd, 2025
Atmen raises €5M for green certification

Atmen has raised €5 million to automate the green certification of industrial supply chains. As European industries aim to prove the sustainability of their products, there's a growing need for a certification system that can convert complex supply chains into compliant, traceable, and verifiable evidence. Atmen aims to provide this critical infrastructure, becoming the invisible backbone of industrial green certification, crucial for European industries facing stricter ESG regulations.

Business Wire
Mar 19th, 2024
Spiritus Announces The First “Carbon Orchard” For Direct Air Capture, Will Sequester 2 Megatons Of Carbon Annually In Wyoming

LOS ALAMOS, N.M.--(BUSINESS WIRE)--In a significant development for climate action, Spiritus, the leading climate tech company designing solutions for market accessible carbon removal using direct air capture (DAC), has announced today that it will establish its first “Carbon Orchard” direct air capture and sequestration site in Central Wyoming. The facility, known as Orchard One, will be one of the world’s largest direct air capture facilities, capable of capturing and sequestering up to two megatons of carbon from the atmosphere annually. Orchard One will bring hundreds of jobs to Wyoming, and will begin carbon removal in 2026. Spiritus is pioneering a new offering for direct air capture, the gold standard for high-quality carbon dioxide removal (CDR), that makes direct air capture accessible within all net-zero portfolios by driving a tenfold reduction in cost from current standards. Increasing accessibility means bringing the cost of direct air capture and geologic sequestration under $100 a ton, a tenfold cost reduction, enabling stakeholders to achieve more carbon removal value for their high-quality CDR investments. Stakeholders can now include top-quality direct air capture from Orchard One in their portfolios, overcoming a major concern with alternative lower-quality lower-permanence carbon credits and offsets

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