Sunhat Raises €9.2M Series A for AI-Powered ESG Reporting Automation

Cologne-based startup Sunhat has secured €9.2 million in Series A funding, led by CommerzVentures, with participation from existing investors Capnamic, EnBW New Ventures, xdeck, and WEPA Ventures, according to Tech.eu. Sunhat is focused on automating the validation and sharing of Environmental, Social, and Governance (ESG) and other non-financial data, addressing a growing "Proof Gap" faced by enterprises. Companies are increasingly burdened by requests for comprehensive documentation, including policies, certifications, audit records, and ESG metrics, from stakeholders such as customers, investors, and regulators. These requests often require specific formats and adherence to strict deadlines, creating significant operational challenges. Research indicates that employees spend an average of 360 hours per year searching for essential documentation, and approximately half of digital workers experience difficulty in locating necessary information. This inefficiency negatively impacts decision-making and overall productivity. Sunhat's AI-powered platform aims to streamline this process by converting ESG and compliance data into verified documentation. At the platform's core is "Proof AI," an intelligence engine trained on data from thousands of audits, assessments, and questionnaires. Proof AI is designed to understand the requirements for valid proof across various management standards, disclosure frameworks, and ESG ratings, and subsequently map those requirements to a company's existing approved information. The market for governance, risk, and compliance platforms is projected to expand by $44.22 billion between 2025 and 2029, highlighting the escalating importance of verifiable proof for businesses.