What is the EU Taxonomy?
1 min
Level
In this article, we'll break down what the EU Taxonomy is, how it works, the criteria for sustainable activities, and its broader impact on businesses and financial markets.
The voice of impact
ESG / CSR
Industries
MEASURE
ACT
COMFORM
Top 5 Carbon Management Software
Level
As businesses face increasing pressure to reduce their carbon footprint, the demand for reliable carbon management software has never been higher. With growing regulations, heightened expectations from stakeholders, and the urgent need to address climate change, measuring and managing carbon emissions is now a critical task for companies worldwide.
Carbon management software gives businesses the tools they need to track, analyse, and reduce their greenhouse gas emissions. By automating the process of calculating emissions across Scopes 1, 2, and 3, these platforms not only streamline compliance with regulations like the GHG Protocol and CSRD but also help businesses set and achieve decarbonisation goals.
👉 In this article, we’ll explore five of the leading carbon management software platforms available today. Whether you're looking to measure your carbon footprint, create actionable decarbonisation plans, or meet regulatory requirements, these tools can help you build a more sustainable future.
What is Carbon Management Software?
Carbon management software refers to specialised platforms designed to help businesses measure, monitor, and reduce their carbon emissions. These tools automate the complex process of calculating carbon footprints, providing businesses with a clear overview of their greenhouse gas emissions across all operations. By tracking emissions from direct sources (Scope 1), purchased energy (Scope 2), and even the more challenging supply chain and indirect emissions (Scope 3), carbon management software offers a comprehensive view of a company’s environmental impact.
These platforms not only streamline compliance with international frameworks like the GHG Protocol but also help businesses in setting science-based decarbonisation targets. By providing insights into where emissions are coming from and suggesting actionable steps for reduction, carbon management software plays a crucial role in the fight against climate change.
“ For businesses looking to take sustainability seriously, carbon management software is an essential tool, offering both detailed reporting and the ability to implement long-term strategies for reducing carbon emissions. ”
Close
Why Companies Need to Measure Their Emissions
Measuring emissions is no longer just a choice for businesses - it’s a necessity. As climate change accelerates, companies are being held accountable for their environmental impact by customers, investors, and regulatory bodies. But why is it so important for businesses to measure their carbon emissions?
1. Regulatory Compliance
Governments and international bodies are introducing stricter regulations to ensure businesses reduce their greenhouse gas emissions. Frameworks like the GHG Protocol and the EU’s CSRD (Corporate Sustainability Reporting Directive) require companies to provide detailed reports on their emissions. Carbon management software helps businesses stay compliant by automating data collection and ensuring they meet regulatory reporting requirements efficiently and accurately.
2. Achieving Net-Zero Goals
As global net-zero targets become a priority, businesses need to track their emissions to understand where reductions can be made. Without accurate data, companies risk missing critical reduction opportunities. By using carbon management software, businesses can measure emissions across Scope 1, 2, and 3, identify areas for improvement, and create realistic decarbonisation plans aligned with science-based targets.
3. Stakeholder Expectations
Consumers, employees, and investors are increasingly prioritising sustainability. Companies that can demonstrate their commitment to reducing their environmental impact are more likely to attract environmentally conscious customers and investors. Measuring emissions provides transparency and accountability, showing stakeholders that a company is actively working towards reducing its carbon footprint.
4. Enhancing Business Efficiency
By identifying emission hotspots, carbon management software helps companies optimise their operations, reducing energy consumption and costs. From better energy management to more sustainable supply chains, tracking emissions can lead to long-term financial savings while aligning business practices with sustainability goals.
👉 In short, carbon management software not only helps businesses comply with regulations but also drives operational efficiency, builds investor confidence, and supports the transition to a low-carbon future.
Key Features to Look for in Carbon Management Software
Choosing the right carbon management software is crucial for accurately measuring your business's emissions and implementing effective decarbonisation strategies. But with so many platforms available, how do you know which one is the best fit for your company? Here are the key features to look for when selecting carbon management software:
1. Scope 1, 2, and 3 Emissions Tracking
Comprehensive carbon management software should allow you to track all three scopes of emissions. Scope 1 covers direct emissions from company-owned sources, Scope 2 accounts for indirect emissions from purchased energy, and Scope 3 involves emissions from your supply chain and other indirect sources. Being able to measure emissions across all scopes provides a complete view of your company’s carbon footprint.
2. Data Automation & Integration
Managing emissions data can be complex, especially if it's coming from various sources. A good carbon management platform automates data collection, reducing the time and effort needed for manual input. Additionally, integration with your existing tools, like ERP systems or energy monitoring software, ensures seamless data flow and more accurate emissions reporting.
3. Detailed Analytics & Reporting
Carbon management software should provide in-depth analytics and customisable reports, offering insights into your emissions data. Look for platforms with intuitive dashboards that allow you to visualise progress toward sustainability goals, highlight emission hotspots, and generate reports aligned with international frameworks. These reports are essential for both internal assessments and external sustainability reporting.
4. Decarbonisation Pathways
Beyond just tracking emissions, the best carbon management software should offer actionable insights into how your company can reduce its carbon footprint. Decarbonisation pathways provide tailored recommendations for emission reductions, from energy efficiency improvements to supply chain adjustments. These tools help companies transition from measuring emissions to actively reducing them.
5. Compliance with Regulatory Frameworks
As regulations around carbon reporting grow, it’s important that your chosen software is built to support compliance. Whether it’s aligning with the GHG Protocol or ensuring your reports meet the requirements of CSRD, a strong regulatory framework is critical for both compliance and transparency. The software should also offer regular updates as regulations evolve.
By focusing on these key features, businesses can ensure they choose a carbon management software that not only helps them track their emissions but also supports their long-term sustainability goals.
Top 5 Carbon Management Software for 2024
Now that we’ve covered why carbon management software is essential and the key features to look for, let’s dive into five leading platforms that are helping businesses tackle their emissions challenges. These platforms offer a range of tools designed to simplify carbon accounting, drive decarbonisation efforts, and ensure compliance with global regulations.
1. Greenly
Overview: Greenly offers a comprehensive carbon management platform that helps businesses of all sizes measure and reduce their carbon emissions across Scope 1, 2, and 3. With a focus on user-friendly design and powerful analytics, Greenly provides businesses with the tools they need to understand their carbon footprint and take action toward decarbonisation.
Key Features:
- Emissions Tracking: Track Scope 1, 2, and 3 emissions with ease, offering a full picture of your company’s environmental impact.
- Tailored Action Plans: Greenly’s climate experts work directly with businesses to create custom decarbonisation strategies that focus on the most impactful areas for emission reductions.
- Supply Chain Decarbonisation: Greenly offers advanced tools to engage suppliers and manage Scope 3 emissions, helping businesses build more sustainable supply chains.
- User-Friendly Interface: Greenly’s platform is designed to be intuitive, ensuring that businesses can seamlessly track emissions, generate reports, and visualise progress toward their sustainability goals.
Why Choose Greenly: Now, we may be a little biased, but we believe Greenly is the best choice when it comes to carbon management. From end-to-end support to powerful analytics and science-based targets, we offer everything your business needs to grow sustainably - while keeping things simple and effective.
Close
2. Plan A
Overview: Plan A is a carbon management platform focused on helping companies decarbonise. In particular its TÜV-certified tools make it a popular choice for businesses that need to comply with the EU’s Corporate Sustainability Reporting Directive (CSRD). Plan A goes beyond carbon accounting, offering tailored solutions to help companies meet sustainability goals.
Key Features:
- Decarbonisation-First Approach: Plan A prioritises emission reductions, helping companies cut carbon with science-based tools.
- Regulatory Compliance: Plan A’s platform is designed to meet the strict reporting requirements of the GHG Protocol and CSRD.
- Expert Support: Offers personalised guidance to ensure businesses make the most of their carbon reduction strategies.
Why Choose Plan A: Ideal for businesses looking to streamline their carbon management processes while ensuring compliance with European regulations.
3. Watershed
Overview: Watershed is a robust carbon management platform designed for large enterprises with complex supply chains. It offers tools for carbon, water, and waste accounting, making it a comprehensive sustainability solution. Watershed’s platform is trusted by businesses across sectors, including finance, consumer goods, and logistics.
Key Features:
- Supply Chain Focus: Watershed provides powerful tools for managing Scope 3 emissions, which are often the hardest to track.
- Comprehensive Accounting: In addition to carbon, Watershed helps businesses manage water and waste impacts.
- Greenhouse Gas Database: Integrates a vast database of emissions factors to streamline Scope 3 emissions reporting.
Why Choose Watershed: Best suited for large businesses that need a platform capable of managing complex emissions data across multiple categories.
4. Sweep
Overview: Sweep is a highly customisable platform known for handling large datasets and integrating sustainability into complex business operations. Its flexibility makes it suitable for organisations of all sizes, from SMEs to large corporations. Sweep is particularly strong in Scope 3 emissions tracking, helping companies address supply chain decarbonisation.
Key Features:
- Customisable Reporting: Sweep offers extensive customisation options, allowing businesses to tailor reports to their specific needs.
- Scope 3 Visibility: Designed to make Scope 3 emissions tracking easier, with tools to engage suppliers and improve transparency.
- Dynamic Analysis: Provides powerful analytics to help businesses understand their emissions data and plan for decarbonisation.
Why Choose Sweep: Ideal for companies seeking a highly flexible platform with strong data management and reporting capabilities.
5. IBM Environmental Intelligence Suite
Overview: IBM’s Environmental Intelligence Suite combines carbon accounting with advanced climate data analytics and risk management. Designed for enterprise-level clients, the platform provides in-depth insights into emissions and helps companies plan for future climate risks.
Key Features:
- Advanced Climate Analytics: IBM integrates climate data to help businesses anticipate and mitigate environmental risks.
- Comprehensive Carbon Management: Track emissions across all scopes and align reporting with global frameworks.
- Future Emissions Projections: Predict future emissions based on current activities and climate trends.
Why Choose IBM: Best suited for large enterprises needing a solution that combines carbon accounting with climate risk management and predictive analytics.
| Platform | Overview | Key Strength | Best For |
|---|---|---|---|
| Greenly | Comprehensive platform focusing on Scope 1, 2, and 3 emissions tracking, tailored strategies, and supply chain decarbonisation. | User-friendly platform with tailored action plans and comprehensive supply chain decarbonisation tools. | Businesses of all sizes looking to track and reduce carbon emissions with expert support. |
| Plan A | European-focused platform prioritising decarbonisation with TÜV-certified tools, aligned with CSRD compliance. | Decarbonisation-first approach with compliance to major European regulations like CSRD. | European companies needing strong decarbonisation strategies and regulatory compliance. |
| Watershed | Robust platform for large enterprises with a focus on managing complex supply chains and multi-category environmental impacts. | Specialises in Scope 3 tracking and sustainability across supply chains, water, and waste accounting. | Large businesses with complex supply chains and multi-category environmental impacts. |
| Sweep | Highly customisable platform, suitable for businesses of all sizes, known for its strong Scope 3 emissions tracking. | Customisable reporting and advanced Scope 3 visibility, strong analytics for businesses of all sizes. | Companies seeking flexible, customisable tools for detailed carbon management. |
| IBM Environmental Intelligence Suite | Enterprise-level platform combining carbon accounting with climate data analytics and risk management. | Advanced climate analytics with future emissions projections and risk management. | Large enterprises needing a combination of carbon management and climate risk planning. |
How to Choose the Right Carbon Management Software for Your Business
Choosing the right carbon management software is about finding the platform that best aligns with your business’s specific goals, operations, and sustainability ambitions. Here’s how you can approach the decision-making process to ensure you make the right choice:
Understand Your Business's Emissions Profile
Before selecting a software platform, it’s crucial to have a clear understanding of your business’s emissions sources. Are most of your emissions concentrated in Scope 1 and 2, or is Scope 3 (supply chain and indirect emissions) a significant component? Knowing where your emissions are coming from will help you choose a platform with the right capabilities to address your carbon footprint effectively.
Identify Your Long-Term Sustainability Goals
Are you aiming to comply with regulations, or do you want to go beyond compliance and set ambitious decarbonisation targets? Some businesses may need software to simply track emissions for reporting purposes, while others are looking to take a more proactive approach to reduce emissions in line with net-zero goals. Choose a platform that aligns with the level of ambition you have for your sustainability journey.
Evaluate Industry-Specific Needs
Different industries have unique carbon management challenges. For example, manufacturers may need tools that can track emissions across complex supply chains, while service-based businesses might prioritise energy use and operational efficiency. Some platforms offer industry-specific solutions, so it’s important to choose one that caters to your sector’s requirements and can deliver actionable insights tailored to your operations.
Determine the Importance of Support & Expertise
If you’re new to carbon management, you might need a software provider that offers comprehensive expert support, from helping with emissions calculations to guiding your decarbonisation strategy. On the other hand, if your sustainability team is experienced, you may prioritise platforms that offer greater flexibility and autonomy. Consider how much support your business will need to get the most value from the platform.
Budget for the Future
While immediate needs are important, think about the future scalability of the platform. Will the software be able to grow with your company as your carbon management strategy evolves? Consider platforms that offer modular or scalable solutions that can adapt as your business expands, new regulations emerge, or sustainability goals become more ambitious.
Focus on Integration with Existing Systems
Finally, ensure that the software integrates smoothly with your existing systems - whether it’s your financial software, energy management platforms, or supply chain management tools. A platform that supports seamless data flow will save you time and provide more accurate, real-time insights.
How Greenly can help your company
For businesses looking to take meaningful steps toward reducing their carbon footprint, Greenly offers comprehensive carbon management solutions tailored to your unique needs. Our advanced platform allows companies to track, analyse, and reduce their emissions efficiently across Scope 1, 2, and 3, providing a complete view of your environmental impact.
Greenly’s intuitive platform streamlines the process of managing emissions, allowing you to monitor progress and integrate sustainability into your operations. From tailored action plans that drive emissions reduction to tools that decarbonise your supply chain, Greenly is with you every step of the way.
Why Choose Greenly?
With end-to-end support, expert insights, and user-friendly technology, Greenly helps your business not only meet its sustainability goals but also drive long-term value by enhancing brand reputation and building investor confidence.
Start your journey toward a more sustainable future with Greenly today.
More articles
View all
The Carbon Border Adjustment Mechanism (CBAM)
1 min
Level
In this article, we break down what the EU CBAM is, how it works, and what businesses need to do to comply.
10 Reasons to Track a Corporate Carbon Footprint
1 min
Level
In this article, we’ll explain what a corporate carbon footprint is, why it’s important, how it is measured, and reasons why your company should track it too.
Decarbonisation: what it is and why it matters
1 min
Level
In this article, we break down what decarbonisation means, explore why it's urgently needed, and outline practical steps companies can take to support the global push toward net zero.