Reporting requirements and pressure to decarbonize operations and supply chains have created a business imperative for organizations to understand and communicate their emissions data. Amid complex structures and high stakes, pen-and-paper or spreadsheet approaches are no longer fit for purpose – instead, many are deploying carbon management software.
Here’s a top-level explainer of the software, why it’s important and the key players in the market.
What is carbon management software?
Carbon management software is software that enables firms to capture, analyse and forecast carbon data and track progress towards net zero goals across all business operations.
Why do I need carbon management software?
Carbon management software encompasses five key functionality areas:
- Data collection.
Global regulations and reputational risks are increasing the need for investment-grade data. Carbon management software alleviates the data collection burden by incorporating inputs from across the business, as well as from suppliers. - Data aggregation and validation.
Compiling information for data cleansing and verification helps to ensure that there are no discrepancies or gaps. - Calculation and modelling.
A crucial step in carbon management is translating raw data into actionable insights – software can generate carbon equivalents and product carbon footprints. - Programme management.
Understanding your firm’s current emissions is the foundation for implementing meaningful actions. Carbon management software is pivotal in generating targets and decarbonization projects. It also offers sustainability leaders the ability to track reductions and progress, which is vital to communicate performance. - Reporting.
Mandatory and voluntary reporting frameworks can be complex and time-consuming, with non-compliance potentially leading to financial and reputational consequences. Carbon management software allows firms to generate audit-ready reports aligned with the relevant frameworks.
Carbon management is a key underpinning for sustainable businesses, but in itself is not a corporate end-goal. With upcoming changes to EU regulations and the impact of the recent US elections, firms will prioritize both operational and asset-level decarbonization, driven by financial opportunities tied to emissions reductions. Implementing an effective software solution can help sustainability leaders to incorporate emission metrics into larger structures and core objectives, furthering business goals and providing a competitive edge.
Key carbon management software providers
For further guidance on carbon management software offerings, read Verdantix Buyer’s Guide: Carbon Management Software (2024).
