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Tracking emissions to help companies reduce their environmental footprint

Context Labs, led by Dan Harple SM ’13, uses AI-enabled data analytics and verification to help companies measure their true greenhouse emissions and document reductions.
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“There’s an old adage: Unless you measure something, you can’t change it,” says Context Labs founder Dan Harple.
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Image: Courtesy of Context Labs; MIT News

Amidst a global wave of corporate pledges to decarbonize or reach net-zero emissions, a system for verifying actual greenhouse gas reductions has never been more important. Context Labs, founded by former MIT Sloan Fellow and serial entrepreneur Dan Harple SM ’13, is rising to meet that challenge with an analytics platform that brings more transparency to emissions data.

The company’s platform adds context to data from sources like equipment sensors and satellites, provides third-party verification, and records all that information on a blockchain. Context Labs also provides an interactive view of emissions across every aspect of a company’s operations, allowing leaders to pinpoint the dirtiest parts of their business.

“There’s an old adage: Unless you measure something, you can’t change it,” says Harple, who is the firm’s CEO. “I think of what we’re doing as an AI-driven digital lens into what’s happening across organizations. Our goal is to help the planet get better, faster.”

Context Labs is already working with some of the largest energy companies in the world — including EQT, Williams Companies, and Coterra Energy — to verify emissions reductions. A partnership with Microsoft, announced at last year’s COP28 United Nations climate summit, allows any organization on Microsoft’s Azure cloud to integrate their sensor data into Context Lab’s platform to get a granular view of their environmental impact.

Harple says the progress enables more informed sustainability initiatives at scale. He also sees the work as a way to combat overly vague statements about sustainable practices that don’t lead to actual emissions reductions, or what’s known as “greenwashing.”

“Just producing data isn’t good enough, and our customers realize that, because they know even if they have good intentions to reduce emissions, no one is going to believe them,” Harple says. “One way to think about our platform is as antigreenwashing insurance, because if you get attacked for your emissions, we unbundle the data like it’s in shrink-wrap and roll it back through time on the blockchain. You can click on it and see exactly where and how it was measured, monitored, timestamped, its serial number, everything. It’s really the gold standard of proof.”

An unconventional master’s

Harple came to MIT as a serial founder whose companies had pioneered several foundational internet technologies, including real-time video streaming technology still used in applications like Zoom and Netflix, as well as some of the core technology for the popular Chinese microblogging website Weibo.

Harple’s introduction to MIT started with a paper he wrote for his venture capital contacts in the U.S. to make the case for investment in the Netherlands, where he was living with his family. The paper caught the attention of MIT Professor Stuart Madnick, the John Norris Maguire Professor of Information Technology at the MIT Sloan School of Management, who suggested Harple come to MIT as a Sloan Fellow to further develop his ideas about what makes a strong innovation ecosystem.

Having successfully founded and exited multiple companies, Harple was not a typical MIT student when he began the Sloan Fellows program in 2011. At one point, he held a summit at MIT for a group of leading Dutch entrepreneurs and government officials that included tours of major labs and a meeting with former MIT President L. Rafael Reif.

“Everyone was super enamored with MIT, and that kicked off what became a course that I started at MIT called REAL, Regional Entrepreneurial Acceleration Lab,” Harple says. REAL was eventually absorbed by what is now REAP — the Regional Entrepreneurship Acceleration Program, which has worked with communities around the world.

Harple describes REAL as a framework vehicle to put his theories on supporting innovation into action. Over his time at MIT, which also included collaborating with the Media Lab, he systematized those theories into what he calls pentalytics, which is a way to measure and predict the resilience of innovation ecosystems.

“My sense was MIT should be analytical and data-driven,” Harple says. “The thesis I wrote was a framework for AI-driven network graph analytics. So, you can model things using analytics, and you can use AI to do predictive analytics to see where the innovation ecosystem is going to thrive.”

Once Harple’s pentalytics theory was established, he wanted to put it to the test with a company. His initial idea for Context Labs was to build a verification platform to combat fake news, deepfakes, and other misinformation on the internet. Around 2018, Harple met climate investor Jeremy Grantham, who he says helped him realize the most important data are about the planet. Harple began to believe that U.S. Environmental Protection Agency (EPA) emissions estimates for things like driving a car or operating an oil rig were just that — estimates — and left room for improvement.

“Our approach was very MIT-ish,” Harple says. “We said, ‘Let’s, measure it and let’s monitor it, and then let’s contextualize that data so you can never go back and say they faked it. I think there’s a lot of fakery that’s happened, and that’s why the voluntary carbon markets cratered in the last year. Our view is they cratered because the data wasn’t empirical enough."

Context Labs’ solution starts with a technology platform it calls Immutably that continuously combines disparate data streams, encrypts that information, and records it on a blockchain. Immutably also verifies the information with one or more third parties. (Context Labs has partnered with the global accounting firm KPMG.)

On top of Immutably, Context Labs has built applications, including a product called Decarbonization-as-a-Service (DaaS), which uses Immutably’s data to give companies a digital twin of their entire operations. Customers can use DaaS to explore the emissions of their assets and create a verification or certificate of the quantified carbon intensity of their products.

Putting emissions data into context

Context Labs is working with oil and gas companies, utilities, data centers, and large industrial operators, some using the platform to analyze more than 3 billion data points each day. For instance, EQT, the largest natural gas producer in the U.S., uses Context Labs to verify the carbon intensity of its operational assets and refine its overall GHG emissions mitigation strategy. Other customers include the nonprofits Rocky Mountain Institute and the Environmental Defense Fund.

“I often get asked how big the total addressable market is,” Harple says. “My view is it’s the largest market in history. Why? Because every country needs a decarbonization plan, along with instrumentation and a digital platform to execute, as does every company.”

With its headquarters in Kendall Square in Cambridge, Massachusetts, Context Labs is also serving as a test for Harple’s pentalytics theory for innovation ecosystems. It also has operations in Houston and Amsterdam.

“This company is a living lab for pentalytics,” Harple says. “I believe Kendall Square 1.0 was factory buildings, Kendall Square 2.0 is biotech, and Kendall Square 3.0 will be climate tech.”

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