SEC and other regulators are starting to mandate CO2e(quivalent) reporting. Carbon reports are used by investors, lenders, insurers and (conscious) customers
Companies are also starting to set emissions targets or commit to Net-Zero by 2030/2050. This is because The Paris agreement requires net-zero by 2050.
But companies don’t know or find it difficult to measure and report.
There are many sources of CO2, so gathering data is manaul or incomplete (e.g. employee travel, building electricity/water usage, products purchased, cloud-infra.)
Reporting and categorization standards are complex.
What to do to reduce the CO2 footprint is an open-question.
More broadly, there is a “Climate Disclosure” market - disclosing anything regarding carbon, water, fire, etc usage.
| Manages complexity | Automating data collection, calculations, and reporting helps to simplify the process and provides clear insights into carbon emissions. |
|---|---|
| Error reduction | Reduces the risk of human errors that might otherwise occur with a more manual process. |
| Increased visibility | Comprehensive and real-time insights into their carbon emissions, enabling better decision-making and targeted strategies for emission reduction. |
| Audit trail & compliance | Maintaining an accurate and traceable record of emissions data, ensuring transparency and compliance during regulatory inspections or audits. Keeping up to date with new rules and accounting principals |
| Future-proofing | Carbon accounting software helps businesses future-proof by adapting to evolving regulations and reporting frameworks, ensuring they can effectively track and report emissions in line with changing requirements. |
| Reduce emissions | Recommendations and products to reduce footprint by working with better suppliers, or reducing their own direct footprint, buying credits, investing in renewables |
Companies on the path to Net-Zero need a scalable, compliant and educative way to measure, monitor, report and reduce CO2e, accurately.
Spend based proxy
Science Based Targets (SBT)