As per ESG Today, Germany-based Retraced allows fashion brands to determine whether or not their suppliers adopt sustainable practices, as well as how effective their actions are when it comes to reducing the climate impact. The company currently works with more than 150 clothing companies, including Desigual, Tom Tailor and Calzedonia, and it evaluates the sustainability efforts of more than 15.000 suppliers worldwide.

Company officials said that the funding will be used to expand the capabilities of its platform, employing artificial intelligence for more accurate and effective supply chain analysis.

Furthermore, additional features will allow companies and their suppliers to find how effective existing sustainability measures are and which ones could be added to lower the impact on the planet.

Retraced CEO and Founder Lukas Pünder said that "as the regulatory landscape becomes more complex, our mission to simplify sustainability management and make it more effective is more important than ever. With the support of our investors, we are well-positioned to continue developing our platform, empowering fashion brands to meet their sustainability goals and build stronger relationships with their suppliers and their customers."