ValAi’s Greenhouse platform wins global finance competition

Adelaide start-up ValAi will fast-track development of its sustainability valuation model after impressing a group of global banking CEOs.

ValAi founders Tom Reed, left, and Allys Todd, with data scientist Sean Stach.

Adelaide start-up ValAi is in talks with investors to fast-track development of its sustainability valuation platform, Greenhouse, after winning a global competition run by an international alliance of banks.

Greenhouse is designed to encourage homeowners to invest in sustainability upgrades, such as smart metres, solar and batteries, by measuring and reporting the impact of sustainability performance on a property’s value.

It’s the brainchild of Conservation Council SA general manager Allys Todd and property valuer Tom Reed, who have been developing the platform over the past 18 months.

They hope it will also influence banks and financiers to recognise both the environmental and financial benefits of sustainable properties.

Last week, Greenhouse took out the inaugural Global Open Finance Challenge – a competition run by NAB, Canada’s CIBC, Brazil’s Itau Unibanco and the UK’s NatWest to encourage innovation in the sector.

It beat 91 teams from 19 countries after the concept was presented virtually to a judging panel including the chief executives of each of the banks and industry leaders from companies including Amazon.

Ms Todd, who is transitioning out of her role at Conservation Council SA to dedicate herself full-time to Greenhouse, said the platform was developed to support mum and dad homeowners while also stimulating more green financing activity and encouraging financial institutions to lead the world’s energy transition.

“What we want to be able to do is empower customers to have a better idea of how their footprint and energy consumption affects the market value of their home, and then we’ll be able to direct them to products or services that banks and financiers have that can support them with any home improvements or upgrades that they require,” she said.

“The aim is to really fill the knowledge gap for homeowners on the impact of sustainability ratings on the value of their asset, and also it challenges the financial institutions to start recognising sustainability as a key metric when it comes to homes through their loan portfolio.”

Banks are under increasing pressure from regulators and investors to ramp up their sustainability efforts, and Greenhouse has the potential to support that shift by measuring the carbon footprint of home lending portfolios.

NAB and the other alliance members will work with ValAi to launch a proof of concept for Greenhouse in the new year, and Ms Todd said the relationship could also involve investment into the business.

“We will certainly be looking to raise capital in the coming months and we are in negotiations with various groups, including those through this challenge, to be able to nut that out further,” she said.

“We want to have this to market as soon as possible.

“We really do see that this is a pivotal time for the global economy to be recognising our net zero targets, and to be able to work directly with the financiers and engage their customers is a tremendous opportunity for us to fast-track the globe’s transition to net zero.”