In an era where environmental responsibility meets corporate strategy, one startup has risen to prominence by offering innovative solutions for tracking and reducing carbon emissions. Taylor Francis, co-founder of Watershed, shares the journey from inception to competing with tech giants like Microsoft and Salesforce, all while navigating shifting political landscapes.

Empowering Businesses to Lead on Climate Action

The Genesis of Watershed

In 2019, amidst the waning days of the first Trump administration, Taylor Francis, alongside Avi Itskovich and Christian Anderson, launched Watershed. The trio identified a critical gap in the market: software that could help businesses measure, reduce, and report their carbon emissions effectively. Despite initial skepticism, they believed that climate action wasn’t just a moral imperative but also a lucrative business opportunity.The early days were challenging. Companies had traditionally relied on consultants or carbon offsets, but the idea of investing in specialized software was novel. Yet, Francis and his team persisted, driven by the conviction that climate initiatives could be profitable. Their sales pitch was straightforward yet powerful: “Software to measure, reduce, and report your carbon emissions, because climate action is good for your business.” This message resonated, even in a political environment that seemed indifferent to environmental concerns.

Navigating Political Uncertainty

Fast forward to 2024, and Watershed found itself in a different yet familiar position. With the second Trump term underway, the company faced renewed challenges. However, Francis remained undeterred. He emphasized that Watershed’s value proposition hadn’t changed—it was still about helping companies thrive through sustainable practices. In fact, January 2025 marked the company's best month ever in terms of new revenue, signaling that the market was increasingly recognizing the importance of climate action.Francis observed that while public discourse on climate might have quieted down, behind the scenes, companies were more committed than ever. The shift from chief sustainability officers to chief financial officers overseeing climate initiatives underscored this growing seriousness. Enterprises were now treating climate action as a core business function rather than a peripheral concern.

Competing with Tech Giants

Watershed’s rapid rise didn’t go unnoticed. Soon, it found itself competing with industry titans like Microsoft and Salesforce, both of which offered similar emissions-tracking services. While these competitors brought significant resources to the table, Francis believed that Watershed’s singular focus on climate action gave it a competitive edge. The company’s product quality, tailored specifically to meet the unique needs of its clients, set it apart.A spokesperson for Salesforce acknowledged the data challenge inherent in sustainability management, emphasizing the need for a unified platform. Meanwhile, Microsoft remained tight-lipped, though its entry into the space validated Watershed’s market potential. Despite the competition, Watershed continued to carve out its niche, serving over 500 clients, including 60 of the Fortune 500 companies.

Growth and Scaling Challenges

As Watershed expanded from a team of 100 to nearly 400 employees across San Francisco and London, managing growth became a priority. The company’s success brought higher expectations, especially from large enterprises like Walmart. Delivering high-quality services at scale required not only technological innovation but also organizational agility.Francis prioritized an “old school” approach, fostering face-to-face interactions and collaborative workspaces. This hands-on method allowed for dynamic problem-solving and ensured that Watershed stayed ahead of the curve. The company’s ability to adapt and innovate in real-time was crucial in maintaining its competitive advantage.

Reflecting on Milestones and Future Prospects

Looking back, Francis reflected on key milestones, such as securing $100 million in Series C funding and achieving a $1.8 billion valuation. These achievements were a testament to Watershed’s resilience and strategic foresight. Even as some high-profile clients like BlackRock pulled out of climate initiatives, Francis remained optimistic. He noted that many companies were quietly making substantial progress, focusing on actionable steps rather than grandiose pledges.The future of climate action remains uncertain, particularly given the current policy landscape. However, Francis believes that behind-the-scenes efforts are more robust than ever. Companies are increasingly integrating sustainability into their core operations, proving that climate action is not just a passing trend but a fundamental shift in business strategy.