10 Reasons to Track a Corporate Carbon Footprint
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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.
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Top 5 Carbon Management Software
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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.
According to a 2023 CDP report, over 18,000 companies now disclose environmental data, revealing the growing global interest in carbon transparency – which requires collecting carbon data and utilizing carbon accounting software.
Carbon management software gives businesses the tools they need to track, analyze, 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 decarbonization 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 decarbonization 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 specialized 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.
For example, multinational companies like Microsoft and Unilever have utilized carbon management platforms to meet science-based targets, maintain regulatory compliance, and ensure improved emissions management.
“ 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. ”
Why is carbon accounting software important?
The right carbon accounting software or leading carbon accounting platform can be selected by evaluating its current features, market presence, user-feedback, and effectiveness of sustainability initiatives. This article includes both independent tools and one developed by Greenly.
Move your cursor over the interactive flip cards to discover the benefits of carbon accounting software:
Regulatory Compliance
Avoid greenwashing and legal penalties by staying compliant with local and global carbon disclosure laws.
Boost Brand Reputation
Attract values-driven customers, ESG-minded investors, and retain employees by proving your commitment to sustainability.
Reducing Emissions
Carbon accounting aligns your business with global climate goals like Net Zero, helping you reduce your footprint strategically.
Investor Readiness
Transparent emissions data helps you meet ESG criteria and stand out to responsible investors and grant funders.
Risk Management
Identify climate-related financial risks early and avoid operational disruptions by managing your environmental impact.
Operational Efficiency
By tracking emissions, you’ll uncover energy waste, streamline logistics, and lower overall costs over time.
How does a carbon accounting platform work?
Carbon accounting solutions such as Greenly provide user-friendly, intuitive dashboards that can allow companies to more easily ensure precise carbon emissions calculations in addition to various carbon accounting tools such as:
- dashboards to easily view emission reduction targets and precise emissions data
- assistance with compliance and reporting (CSRD, SEC Disclosure Rule, etc.)
- opportunities to engage both internal and external stakeholders
- integration with ESG frameworks
These platforms not only streamline compliance with international frameworks like the GHG Protocol and ISO 14064 but also help businesses in setting science-based decarbonization 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.
Overall, 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.
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Why Companies Need to Measure Their Emissions
Measuring emissions is no longer optional for businesses – it’s strategic and legally imperative. As climate change accelerates, companies are being held accountable for their environmental impact by customers, investors, and regulatory bodies.
According to the World Economic Forum, a staggering 90% of global GDP is now covered by net-zero commitments, demonstrating the increasing incentive for companies to disclose their corporate carbon footprint, accelerate sustainability progress, and set emission reduction targets.
But why is it so important for businesses to measure their carbon emissions?
Here’s why tracking emissions and adopting carbon management tools is essential for businesses committed to ESG goals and long-term sustainability:
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.
In fact, starting in 2025, the CSRD alone will require nearly 50,000 companies across the EU to report detailed emissions, drastically increasing the need for reliable carbon accounting systems.
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 decarbonization plans aligned with science-based targets.
3. Stakeholder Expectations
Consumers, employees, and investors are increasingly prioritizing 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.
A recent PwC survey found that 83% of consumers believe companies should be helping to contribute to improved ESG practices, such as by working to build greater supply chain transparency and ensuring organizations prioritize reducing their environmental footprint.
4. Enhancing Business Efficiency
By identifying emission hotspots, carbon management software helps companies optimize 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 support compliance with regulations but also drives operational efficiency, increases investor confidence, and supports the transition to a low-carbon future. This makes calculating your organization's carbon footprint a strategic investment for business growth.
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 decarbonization 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. For example, companies like IKEA track all three emission scopes to guide their net-zero strategies.
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 utilizes automated data capture to help avoid costly reporting errors, ensures audit-readiness, and builds investor confidence. This can reduce the time and effort needed for manual input in emissions measurement and carbon footprint calculations. 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 customizable reports, offering insights into your emissions data. Look for platforms with intuitive dashboards that allow you to visualize progress toward sustainability goals, highlight emission hotspots, and generate reports aligned with international frameworks such as the CDP, GHG Protocol, TCFD, and ISO 14064. These reports are essential for both internal assessments and external sustainability reporting.
4. Decarbonization Pathways
Beyond just tracking emissions, the best carbon management software should offer actionable insights into how your company can reduce its carbon footprint. Decarbonization pathways provide tailored recommendations for emission reductions, from energy efficiency improvements to supply chain adjustments.
For example, a food company might receive insights to reduce energy from the use of refrigerants or how to utilize local suppliers to reduce Scope 3 emissions. 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 such as full-scope tracking, automated data integration, and regulatory compliance, businesses can ensure they choose a carbon management software that not only helps them track and measure emissions effectively – but also take strategic climate action to boost business credibility and support 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.
Selecting the best carbon accounting software is critical to ensure your organization meets ambitious climate targets and regulatory mandates.
These platforms offer a range of tools designed to simplify carbon accounting, drive decarbonization efforts, and ensure compliance with global regulations.
Furthermore, the following platforms have been recognized for their innovation, user-friendliness, and ability to support data collection across all three emission scopes – helping to simply the process of calculating a corporate carbon footprint and boost sustainability efforts.
1. Greenly
Overview: Greenly offers a comprehensive carbon management platform that helps businesses of all sizes measure and reduce their carbon emissions across Scopes 1, 2, and 3. Developed with ease-of-use, powerful analytics, and accuracy in mind – Greenly has been trusted by over 1,500 organizations across various industries such as finance, retail, and manufacturing. Greenly provides businesses with the tools they need to understand their carbon footprint and take action toward decarbonization.
Key Features:
- Emissions Tracking: Automate data collection a track scope 1, 2, and 3 emissions comprehensively with ease across operations, energy use, and supply chain activity – offering a full picture of your company’s environmental impact.
- Tailored Action Plans: Greenly’s team of climate experts works directly with businesses to develop customized emissions reduction strategies aligned with SBTi (Science Based Targets initiative) guidelines and regulatory frameworks like CSRD and the SEC Climate Rule.
- Supply Chain Decarbonization Tools: Greenly offers advanced tools to engage suppliers and manage scope 3 emissions by collaborating with suppliers and improving transparency across the value chain, which helps 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 visualize progress toward their sustainability goals. This also helps to engage stakeholders across departments.
Why Choose Greenly: Now, we may be a little biased, but we believe Greenly is the best choice when it comes to carbon management. This is because we offer verified methodologies, guided expertise, and advanced reporting tools to empower businesses to build trust with stakeholders and improve climate performance. 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.
Our platform's credibility is further supported by partnerships with institutions such as ADEME and Bpifrance, and our methodology is aligned with international standards including the GHG Protocol, ISO 14064, and CDP.
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2. Plan A
Overview: Plan A is TÜV-certified a carbon management platform focused on helping companies decarbonize and navigate strict sustainability regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD). Plan A goes beyond carbon accounting, offering tailored solutions to help companies report emissions, actively reduce them, and meet sustainability goals.
Key Features:
- Decarbonization-First Strategy: Plan A prioritizes reducing emissions with science-based methodologies to help companies effectively reduce GHG emissions.
- Regulatory Compliance: Designed to meet the strict reporting requirements of the latest regulatory requirements such as the Greenhouse Gas Protocol (GHG Protocol) and CSRD, including full support for Scope 1, 2, and 3 reporting.
- Expert Support: Plan A offers personalized guidance with access to sustainability experts to ensure businesses make the most of their carbon measurement, disclosure, and reduction strategies.
Why Choose Plan A: Ideal for businesses operating in the EU looking to streamline their carbon management processes, as a powerful combination of automation, certification, and expert-backed strategies can ensure 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 that excels in Scope 3 emissions management. Watershed’s platform is trusted by businesses across sectors, including finance, consumer goods, and logistics.
Key Features:
- Supply Chain-Focused Emissions Tracking: Watershed provides powerful tools for mapping and managing indirect (Scope 3) emissions at scale, which are often the most difficult to track.
- Comprehensive Accounting: In addition to carbon, Watershed helps businesses manage water and waste impacts.
- Built- In Emissions Database: Integrates a vast database of emissions factors to streamline Scope 3 emissions reporting.
Why Choose Watershed: Best suited for large, data-heavy organizations that need a platform capable of managing complex emissions data across multiple categories for carbon accounting, ESG disclosure, and supply chain decarbonization.
4. Sweep
Overview: Sweep is a highly customizable platform known for handling large datasets and integrating sustainability into complex business operations. Its flexibility makes it suitable for organizations of all sizes, from SMEs to large corporations seeking personalized emissions tracking and supplier engagement tools. Built with data integrity and Scope 3 tracking in mind, it’s a strong choice for businesses looking to embed sustainability into every layer of their operations.
Key Features:
- Customizable Reporting Tools: Sweep offers extensive customization options, such as personalized dashboards and analytics, allowing businesses to tailor reports to their specific needs, reporting formats, and KPIs.
- Scope 3 Visibility: Designed to make tracking suppliers easier, allowing the process of tracking Scope 3 emissions to be simplified with tools to engage suppliers and improve transparency.
- Dynamic Analysis: Provides powerful analytics to help businesses understand their emissions data and plan for decarbonization through the use of strategic, science-based decisions for long-term emissions reduction.
Why Choose Sweep: Ideal for companies seeking a highly customizable platform well-suited for a carbon agenda aligned with reducing scope 3 emissions, as strong data management and reporting capabilities can help to build a positive environmental reputation.
5. IBM Environmental Intelligence Suite
Overview: IBM’s Environmental Intelligence Suite combines carbon accounting with advanced climate data analytics and risk management software. Designed for enterprise-level clients, the platform provides in-depth insights into emissions and strategic risk management aligned with global ESG standards.
Key Features:
- Advanced Climate Risk Modeling & Analytics: IBM utilizes real-time weather and climate data to help businesses anticipate and mitigate environmental risks.
- Comprehensive Carbon Management: Track emissions across all scopes and align reporting with global frameworks such as TCFD and CDP.
- Forecasting Future Emissions: Predict future emissions based on current activities, operational decisions, and climate trends.
Why Choose IBM: Best suited for large, multinational corporations seeking a solution that combines carbon accounting with predictive analytics and climate-resilient planning in their carbon strategy.
The table below will compare and contrast these carbon accounting platforms:
| Platform | Overview | Key Strength | Best For |
|---|---|---|---|
| Greenly | Comprehensive platform focusing on Scope 1, 2, and 3 emissions tracking, tailored strategies, and supply chain decarbonization. | User-friendly platform with tailored action plans and comprehensive supply chain decarbonization tools. | Businesses of all sizes looking to track and reduce carbon emissions with expert support. |
| Plan A | European-focused platform prioritizing decarbonization with TÜV-certified tools, aligned with CSRD compliance. | Decarbonization-first approach with compliance to major European regulations like CSRD. | European companies needing strong decarbonization strategies and regulatory compliance. |
| Watershed | Robust platform for large enterprises with a focus on managing complex supply chains and multi-category environmental impacts. | Specializes 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 customizable platform, suitable for businesses of all sizes, known for its strong Scope 3 emissions tracking. | Customizable reporting and advanced Scope 3 visibility, strong analytics for businesses of all sizes. | Companies seeking flexible, customizable 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 reduction strategies more 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 decarbonization targets?
Some businesses may need software to simply track emissions for ESG 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 prioritize energy use and operational efficiency.
Some platforms offer industry-specific solutions, such as safety and liability reduction, meaning 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 decarbonization strategy.
On the other hand, if your sustainability team is experienced, you may prioritize 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 sustainability data and ensure precise data analysis
- analyze and reduce their emissions efficiently across Scope 1, 2, and 3
- provide a complete overview of your environmental impact
- complete a comprehensive carbon assessment
- comply with various regulatory requirements
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 decarbonize 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.
Sources
CDP https://www.cdp.net/en/press-releases/many-companies-are-well-prepared-for-new-european-sustainability-reporting-rules
GHG Protocol https://ghgprotocol.org/sites/default/files/standards_supporting/FAQ.pdf
SBTi https://sciencebasedtargets.org/resources/files/Net-Zero-Standard-overview.pdf
European Parliament News https://www.europarl.europa.eu/news/en/press-room/20221107IPR49611/sustainable-economy-parliament-adopts-new-reporting-rules-for-multinationals
PwC Research https://www.pwc.com/mu/en/services/consulting/esg.html
Plan A https://plana.earth/
Watershed https://watershed.com/en-GB
Sweep https://www.sweep.net/
IBM https://www.ibm.com/products/environmental-intelligence-suite
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