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How to Choose a Framework Among All ESG Standards
In this article, we’ll give a brief overview of ESG standards, why they are important, and how your company can pick the ESG framework most suited towards your individual goals.
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The 5 Best Carbon Accounting Software in 2024
As more companies seek to reduce their carbon dioxide and greenhouse gas emissions, carbon accounting software have become more useful than ever.
Companies are growing cognizant of their environmental impact, and therefore – many have sought third party assistance to manage and reduce their carbon footprint through carbon accounting software.
Using carbon accounting software allows companies to be held accountable for their new environmental goals, methods to reduce their emissions, monitor their emission reduction progress, and be provided with expert advice on how to proceed with their business in a more sustainable manner.
But what are the best carbon accounting software as of 2024?
In this article, we'll explain what carbon accounting is, why it's important to invest in carbon accounting software, and the best carbon accounting software as of 2024.
What is carbon accounting?
Carbon accounting, which is sometimes referred to as greenhouse gas accounting – is a process a company uses to measure the amount of carbon dioxide emissions they are responsible for so that they may equally trade carbon credits between states, companies, and individuals in the carbon market.
Emissions data to help a company determine their carbon emissions can often prove difficult for companies to calculate alone, making carbon management software a great way for companies to be guided in the best carbon accounting method suitable for their business and ensure proper data collection in addition to the most effective carbon reduction targets.
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💡 In fact, the market for carbon accounting software is growing exponentially – with the carbon accounting software market reaching a new high of $12.73 billion USD in 2022, $15.32 billion USD in 2023, and expectations to hit a high of $18.52 billion USD in 2024.
A carbon accounting platform can help companies to collect carbon data, reduce their future energy emissions and energy consumption, simplify their carbon reporting process, and even adhere to a major climate disclosure regulation such as the CSRD or SEC Climate Disclosure Rule. For example, carbon accounting allows companies to fairly exchange carbon credits and determine how much they should invest into a carbon offset project.
Carbon accounting is a great first step towards developing a more sustainable business model and reducing carbon emissions. After all, it’s hard to pinpoint which carbon reduction measures to take if you don’t know how much carbon emissions you’re producing in the first place – but carbon accounting software can help companies to accurately measure and reduce emissions effectively.
Essentially, carbon accounting operates in a similar manner to financial accounting – but instead of trying to manage a company's financial data, the goal is to calculate emissions and process environmental data.
👉 This is where carbon accounting software come in handy. Running a business is difficult enough, so that’s why many companies in 2024 are seeking third party solutions such as carbon accounting software to help them determine their current carbon emissions and create successful mitigation strategies to reduce their carbon footprints and improve their overall sustainability efforts.
What is carbon accounting software and why use it?
Carbon accounting software is a third party solution to help you with carbon accounting in order to manage and support a company in the efforts to reduce their carbon emissions.
Carbon accounting software can help keep companies informed about their carbon emissions, and actively seek to reduce their carbon footprint and future emissions as their company grows.
💡 Despite the benefits of carbon accounting software, they’re still relatively new – which means that many companies have yet to subscribe to the potential positive impacts carbon accounting software could yield for their company.
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Carbon accounting software can help companies reduce their carbon emissions. However, it’s important to note that the term “carbon emissions” is a generic term that is used to represent all types of greenhouse gasses that provoke global warming.
According to the Greenhouse Gas Protocol, the term “carbon emissions” can refer to:
- methane
- perfluorochemicals
- sulfur
- hexafluoride
- hydrofluorocarbons
- nitrous oxide
Companies that choose to commit to a carbon accounting software allows them to improve their management of the carbon emissions that they are responsible for creating. Carbon accounting can also allow for better financial opportunities, as stakeholders are likely to take interest in a company that is seeking to reduce their carbon emissions.
💡 Carbon accounting software help to establish greater transparency and ultimately, better communication between stakeholders and other potential investors.
Additional benefits to carbon accounting include:
- Allows for improved emissions data collection and simultaneously integrates data analysis to help curate personalized sustainable practices and set reduction targets
- New insight on the indirect emissions produced on behalf of your value chain or supply chain
- Passive or AI powered carbon measurement can help companies to measure their GHG emissions and monitor their supply chains with ease
- Facilitate business growth by adhering to science based targets and mandatory reporting
- Breaks down a company's emissions sources into three different scope categories to allow for more precise emissions tracking, activity data collection, and overall progress tracking
As more companies join the movement to work towards net-zero emissions by 2050, carbon accounting and seeking third party assistance to manage carbon emissions through carbon accounting software is more imperative to success than ever. This is because planning towards net-zero emissions, which is where a company will counterbalance all of their carbon emissions entirely, requires careful planning that can be made easier through the use of a carbon accounting software.
👉 If you choose the right carbon accounting software for your business, you could see a great improvement in the reduction of your carbon emissions. However, it's no easy task to decide what the best carbon accounting software is for your company – as every business has a different carbon agenda and requires specific needs to meet their individual environmental goals.
The 5 Best Carbon Accounting Software in 2024 in the U.S.
We know that taking the time to research the right carbon accounting software for your company can be a tedious process, which is why we've rounded up our top 5 carbon accounting software for 2024 to help make your company's choice for all things carbon emissions easier.
Here are the best carbon accounting platforms to use in 2024 to help your company with emissions measurement and the development of sustainable solutions in the midst of the climate crisis.
Greenly
Greenly is a relatively new carbon accounting software and service based in France that aims to help all companies of all sizes reduce their carbon emissions.
Greenly uses both data analytics and third-party expertise to create personalized solutions for their customers seeking to reduce their greenhouse gas emissions.
Therefore, Greenly is the perfect carbon accounting software if your company is seeking tailored carbon emission reduction methods – as Greenly combines the use of data with real-life climate experts to conjure up the perfect carbon footprint reduction plan for your business.
We have sustainability experts that can help your company uncover actionable insights, ensure accurate measurement, adhere to emissions reporting, find emissions reduction opportunities, and develop sustainability goals in line with your company's mission.
👉 While it’s true that Greenly is often mistaken for its limited scalability as we more often provide our services to a European audience, it’s important to note that Greenly is currently expanding at a rapid pace – and aims to share their combined approach to reducing carbon emissions with the world including companies located across Europe, the United States, and the United Kingdom.
Persefoni
Persefoni arguably has the most experience and most partnership opportunities in the carbon emissions industry, as they are based in the United States and also have offices around the world.
Persefoni is known for their five star rating, and is one of the most well known carbon accounting software in the industry.
Persefoni has a multitude of relationships with several leaders in the industry, including with:
- Bain & Company
- Workiva, SCSK
- CGI
- Hitachi
- Patch.
💡 In short, their many partnerships have allowed them to accumulate many references and extensive knowledge in sustainability reporting, collecting data, and carbon accounting as a whole.
One of Persefoni’s biggest selling points is that they’re tamper-resistant, making them trustworthy to share and send data between potential stakeholders. In addition to this, Persefoni is working towards an AI program to help companies map their purchasing activity to develop improved emission factors.
If you are an asset manager or a part of a large company seeking support from a company to complete both your financial reporting and carbon accounting, then Persefoni could work well for you.
👉 However, if you’re a smaller company and are seeking a more personalized approach to carbon accounting – a company like Greenly may be a better choice.
Sphera
Sphera is known to be a carbon accounting software that utilizes ESG performance and risk management to manage their customers carbon emissions. Sphera values safety and liability above all else, and seeks to establish organizational methods that will help them build more positive relationships with environmental endeavors yet to come.
Sphera strives to achieve their mission of environmental positivity by centralizing their data, reports, and the tools they use to manage their sustainability and carbon emission reductions.
If safety is your primary concern whilst attempting to reduce your carbon emissions, Sphera could be the right choice – but it is important to note that they do not have the same connections as other companies have or are striving to build.
💡 However, Sphera does offer a simple platform to make integrating carbon emission reduction methods easy – making safety and ease of use their main selling points.
IBM Environmental Intelligence Suite
If you’re looking for a carbon accounting software that’s best for large companies and forecasting future carbon emissions, then IBM Environmental Intelligence Suite might be a good fit.
IBM’s biggest selling point is their ability to interpret large amounts of data. As for their carbon emission reduction services, they offer climate risk analytics through the use of artificial intelligence.
IBM Environmental Intelligence Suite relies on data, risk management, and AI to assist their customers with their carbon emission reduction tactics.
While it is admirable and impressive that IBM has illustrated the time-saving benefits of utilizing technology to make carbon emissions inferences, it is important to note that IBM Environmental Intelligence Suite may not be the best carbon accounting software if you’re seeking a more personalized experience.
👉 However, that is not to negate that IBM is well suited to handle large amounts of data, and that their advanced technology makes it easy to monitor and change carbon emissions reduction tactics easily – since IBM can predict several different future scenarios and therefore the success or failure of your current carbon emission reduction tactics.
Sinai Technologies
Sinai technologies help companies reduce their carbon emissions with their unique modeling and planning efforts.
Sinai Technologies accomplishes this through a plethora of tools and functionalities, such as:
- Ability to automate GHG inventories
- Predict pathways to reduce unavoidable emissions
- Help modern businesses determine the financial impact of their GHG emissions and anticipate various financial scenarios in line with a company's climate goals
Regardless of these key features, it is important to note their features are limited and may not be the best carbon accounting software if your company is seeking an all-in-one carbon accounting software experience.
💡 In short, Sinai Technologies may not be the best software for easily-integrating carbon emissions reduction techniques into your business model – as their interface isn’t as friendly as the other carbon accounting software listed above. Otherwise, it isn’t as easy to integrate carbon emission reduction tactics into your business model with Sinai Technologies.
However, their unique models and approach to working towards net-zero emission goals have proven efficacious through the use of carbon budgeting, analytics, and precise analysis to create carbon emissions reduction solutions. If your business has already established a business model to reduce carbon emissions, then the downsides of Sinai Technologies may not impact your overall success.
Still having a difficult time deciding which carbon accounting platform is best for your company?
Take a look at the table below to compare and contrast the different options:
Why is it important to invest in carbon accounting and enterprise software?
Your company could benefit from deciding to commit to carbon accounting software for several reasons, as it helps businesses to improve their sustainability experience and allow them access to advanced decarbonization tactics on a single platform.
First off, using carbon accounting software is a great first step towards developing more sustainable business habits. As global warming continues to persist, investors and customers are seeking to partner or purchase products or services from businesses that seek environmental and social just as well instead of only financial success.
💡 In other words, investors and customers want to know that the product or service they are buying isn’t going to worsen the environmental state more than it already is – and that revenue or gaining business popularity isn’t their sole business incentive.
Carbon accounting also helps to establish transparency and prevent future greenwashing. Committing to the use of carbon accounting software can also provide statistical evidence that is viable to prove that your company is indeed making an effort to reduce your carbon emissions.
While this remains pivotal for large enterprises, it is especially important for smaller businesses looking to establish themselves and ensure their sustainability initiatives are aligned with the GHG protocol.
Not only will using carbon accounting software help you to reach net-zero emissions and maintain or reduce your carbon footprint, but using carbon accounting software can also stimulate financial growth within a company or benefit financial institutions themselves. Since investors, employees, and consumers are growing increasingly interested in sustainability – the odds of attracting new consumers, investors, and employees increase alongside tangible dedication towards reducing carbon emissions and helping the environment.
Carbon accounting software can also help companies comply with new laws or government requirements more easily. Since carbon accounting is a verified process, politicians and lawmakers will be more likely to approve of a company’s dedication to reducing their carbon footprint and confirm that they are complying with the current environmental regulations more easily.
👉 All in all, committing to the use of carbon accounting software can only benefit everyone involved. It helps to reduce your carbon emissions, attract more investors and consumers, increase financial revenue, and ultimately grow your business – all while helping the planet.
How do I choose the right carbon accounting software for my company?
Choosing the right carbon accounting tool will vary depending on your business needs and goals.
However, there are a few things that companies (regardless of size and sector) should consider before choosing the carbon accounting tool for them.
Here are some things to think about when deciding which platform will prove most useful to optimize your carbon reduction strategy:
- Choose a platform that fits your company's specific needs: such as looking to simply monitor emissions data or manage them as well
- Decide which platforms are best able to align with the necessary standards and environmental protocols in your region
- Determine the cost effectiveness of each platform and which carbon management investment is most feasible for your business
- Pick a user-friendly platform that allows your employees to collaborate with stakeholders and your supply chain with ease
- Ensure that that carbon accounting tool of your choice makes data security and privacy protection a top priority
Overall, carbon accounting helps businesses to monitor their activity data, adhere to carbon reporting, and improve their carbon management.
What about Greenly?
Curious to see if Greenly is the right carbon accounting software for your business?
If reading this article about the best carbon accounting software of 2024 has made you interested in reducing your carbon emissions to further fight against climate change – Greenly can help you!
Greenly can help you make an environmental change for the better, starting with a carbon footprint assessment to know how much carbon emissions your company produces.
Click here to learn more about Greenly and how we can help you reduce your carbon footprint.
👉 Take the first step towards reducing your carbon footprint by requesting a free and non-binding demo with one of our experts today and finding the solution that best fits your business needs.
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