With growing interest in sustainability, companies are seeking ways to measure and reduce their carbon footprint.
This guide will explore the key considerations for selecting carbon tracking software - an essential tool to quantify emissions, identify reduction opportunities, and track progress.
We'll cover the core features of these platforms, how to evaluate providers, pricing models, and practical steps to get started on your carbon accounting journey.
Introduction to Carbon Tracking Software
Carbon tracking software provides businesses with visibility into their greenhouse gas (GHG) emissions to inform sustainability strategies. As climate change continues posing an existential threat, measuring and reducing emissions is no longer optional - it's imperative. This article explores key considerations when evaluating carbon accounting platforms to meet your needs.
Understanding Carbon Tracking and Accounting
Carbon tracking refers to quantifying GHG emissions from business operations. This data powers sustainability initiatives across environmental, social, and governance (ESG) efforts. Platforms track emissions across Scopes 1, 2, and 3 as standardized by the Greenhouse Gas Protocol:
- Scope 1 covers direct emissions from owned or controlled sources like facilities, vehicles, and equipment.
- Scope 2 accounts for indirect emissions from purchased electricity, steam, heating, and cooling.
- Scope 3 includes all other indirect emissions across the value chain - from materials sourcing to transportation, distribution, business travel, investments, and waste.
Robust carbon accounting provides actionable insights to set baselines, identify hotspots, and track performance over time. This transparency helps businesses mitigate risks, seek efficiencies, and communicate progress to stakeholders.
The Role of Carbon Accounting in Business Sustainability
Implementing carbon accounting enables SMEs to enhance sustainability in critical ways:
- Set emissions baseline - Quantify total annual carbon footprint to establish current state, set reduction goals, and measure future progress.
- Identify hotspots - Pinpoint activities generating the most emissions to focus reduction efforts for maximized impact.
- Track performance - Monitor emission trends year-over-year to evaluate strategy effectiveness and adapt accordingly.
- Communicate progress - Report sustainability gains to demonstrate commitment, transparency, and accountability to investors and customers.
As societal scrutiny and regulations intensify, SMEs can gain competitive edge and social license by taking the lead on climate action. Adopting carbon accounting now equips businesses for success in an increasingly carbon-constrained world.
What is the best CO2 tracker app?
When it comes to tracking your carbon footprint, there are a few good mobile app options to consider.
Joro
Joro provides a user-friendly carbon tracking experience right from your phone. Track flights, driving habits, home energy, and more to estimate your footprint and get personalized tips to reduce emissions.
Klima
Klima lets you easily log daily activities like transportation, food, and household energy to visualize your impact. It offers a social experience by connecting with friends to compare footprints.
Adva
Adva focuses specifically on tracking carbon emissions from driving. It uses GPS to detect trip details and gives feedback on how to drive more efficiently.
CoolClimate Calculator
This online tool from UC Berkeley lets you input all your lifestyle-related emissions sources. It then estimates your carbon footprint and suggests ways to reduce it.
Capture
Capture uses receipt scanning and machine learning to automatically track emissions from spending. It categorises purchases and sums up your lifestyle footprint.
The best carbon tracker depends on your use case and priorities. Key aspects to evaluate are accuracy, usability, actionability, and any social features.
How do you track carbon?
Tracking your carbon footprint can seem daunting at first, but following a few key steps can simplify the process:
Use a carbon accounting software
Specialised software like EcoHedge can automatically calculate your emissions based on your business activities and energy usage data. The software maps your emissions to standard greenhouse gas accounting protocols, ensuring consistent and auditable carbon reporting.
Key features to look for in carbon accounting software:
- Automated data collection & analysis: Software can connect to your utilities, fleet telematics etc to collect resource usage data and apply appropriate emissions factors to calculate your footprint. This eliminates reliance on manual data entry.
- Customisation for your business: The software should adapt to your specific business model - manufacturers vs office-based companies have very different carbon profiles. It should also connect to common data sources like utility bills, fleet fuel cards etc.
- Compliant methodology & reports: The emissions analysis approach should map to accredited standards like GHG Protocol. This ensures the outputs meet regulatory requirements and stakeholder expectations.
- Stakeholder engagement tools: Look for software that helps you easily share sustainability initiatives both internally and externally via digital newsletters, infographics and more.
Track energy usage
Monitoring your electricity, gas and fuel consumption via utility bills, smart meters or automated data connections allows you to baseline your emissions. Changes up or down indicate where you may need to implement reduction initiatives or investigate process issues.
Analyse operations
Understanding how your business operations like manufacturing, logistics and offices contribute to your emissions is key. The software can allocate emissions to these areas, helping you pinpoint hotspots for reduction projects.
Set a reduction target
With a baseline established, you can now set an ambitious but achievable goal to reduce your carbon footprint year over year. Common targets aim for 30-50% reductions within 5 years. With ongoing tracking, you'll know if you're on the path towards this North Star number.
Specialised software solutions like EcoHedge simplifies the end-to-end process - from collecting granular emissions data across your business to modelling different reduction scenarios and tracking progress towards your sustainability targets. This enables you to focus your efforts on the operational changes that will have the greatest climate impact.
What is a carbon accounting software?
Carbon accounting software provides a centralised platform to measure, analyse, and report on a company's carbon emissions and overall environmental impact. This type of software is invaluable for organisations aiming to reduce their carbon footprint, comply with changing emissions regulations, and communicate sustainability initiatives to stakeholders.
At a high level, carbon accounting platforms help companies:
- Track Emissions Sources: Identify emissions sources across scopes 1, 2 and 3 as per the Greenhouse Gas Protocol. This includes direct emissions from owned sources, indirect emissions from purchased energy, and other indirect emissions from the supply chain.
- Calculate Carbon Footprint: Collect activity data and automatically calculate total CO2e emissions using verified emissions factors and global reporting standards.
- Forecast and Model Emissions: Project future emissions based on business plans and model the impact of reduction initiatives.
- Report and Disclose Emissions: Generate comprehensive reports tailored to various stakeholders including CDP disclosures, ESG reports, and sustainability communications.
Key features that enable effective carbon accounting and tracking include data import connectors, custom analytics, goal setting, scenario analysis tools, stakeholder reporting, and third-party verification.
As sustainability management grows increasingly complex, purpose-built software can help companies accurately and efficiently account for emissions, supporting robust climate action strategies aligned to carbon neutrality goals.
How do companies track their carbon emissions?
Tracking carbon emissions can seem daunting for companies just starting their sustainability journey. However, with the right tools and guidance, it is an achievable first step towards reducing your environmental impact.
Here are some key ways companies can track their carbon footprint:
- Conduct an Emissions Audit - A carbon audit analyses your company's operations to identify your biggest sources of emissions. This involves collecting data on energy use, travel, waste, etc. to quantify your greenhouse gas emissions according to accepted global protocols.
- Use Emissions Management Software - Rather than complex spreadsheets, purpose-built software like EcoHedge simplifies the process via automated data collection, customisable analytics dashboards, and detailed tracking aligned to major reporting frameworks.
- Leverage Carbon Accounting Platforms - Solutions like EcoHedge Lifecycle collate energy invoices and other emissions-related data seamlessly in one place to give you an accurate, real-time view of your carbon footprint. This takes the manual effort out and ensures consistency.
- Obtain Carbon Accounting Certification - Completing recognised training qualifications equips your team with in-depth expertise on current best practices for tracking and reporting emissions accurately while ensuring quality assurance.
Taking a strategic approach is key to gathering the insightful carbon data needed to drive effective emissions reductions across your business. The right carbon accounting tools make this process smoother and more efficient at every step.
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Key Features of Carbon Accounting Platforms
When evaluating carbon accounting platforms, it's important to prioritise options that align with your company's current emission tracking maturity and goals, while allowing room for growth. The right software can simplify data collection, provide actionable insights, and facilitate reduction strategies.
Comprehensive Data Collection and Management
The best carbon accounting platforms make collecting emissions data simple by allowing you to easily input information related to your energy usage, travel, waste, and other sources. This facilitates consistent and complete record keeping across the multiple facilities and emission types typical for small and medium enterprises.
Certain features to look out for include:
- Customisable input templates covering key emission sources
- Flexible API connections to automatically pull relevant data
- Robust validation to catch inconsistencies or gaps proactively
With comprehensive data collection capabilities, you can minimise manual effort while gaining an enterprise-wide view of your carbon impact.
Advanced Reporting and Analysis Tools
Once emissions data is available centrally, the software should provide intuitive analysis and visualisation to transform this into relevant business insights.
Prioritise platforms providing:
- Custom report builder to showcase data most relevant to your stakeholders
- Interactive dashboards to identify trends and top emission drivers
- Forecasting tools to model future projections based on targets
- Benchmarking against industry averages or best practices
Advanced analysis capabilities empower you to not only track but truly understand your carbon footprint to drive informed strategies.
Emissions Management and Reduction Planning
The end goal for carbon accounting is strategising and achieving emission reductions aligned to your business objectives.
Choose software allowing you to:
- Set custom reduction targets by time period or facility
- Model and compare potential reduction initiatives
- Track performance against defined goals
- Automate carbon offset purchases as needed
With the right capabilities for planning and managing your decarbonisation efforts, you can turn insights into an actionable roadmap to achieve your sustainability aims.
Implementation and Integration of Emissions Management Software
Beyond core features, consider how seamlessly the software can integrate into your existing systems and processes.
Training and User Support for Carbon Accounting Software
Implementing new sustainability software can seem daunting, especially for smaller teams wearing multiple hats. Seek out carbon accounting platforms that invest heavily in educational resources to smooth the onboarding process.
- User-friendly dashboards, contextual help menus, and self-guided tutorials allow staff to learn efficiently at their own pace.
- Active online forums and communities create venues for peer knowledge sharing.
- Direct access to customer support teams ensures timely solutions to integration issues.
Selecting software that prioritises the user experience makes adoption simpler across all roles and skill levels.
Seamless Third-Party Integrations
If your organisation already uses solutions like utility bill management or corporate travel booking systems, ensure potential platforms allow simple data integration from these sources.
Manual data entry across multiple systems can bottleneck reporting and invite errors. The chosen carbon accounting software should:
- Offer open APIs for connecting external programs.
- Have existing connectors for popular programs.
- Automatically sync and validate imported emissions data.
Streamlined integrations save considerable time while increasing data accuracy when calculating your carbon footprint.
Software Adaptability and Scalability
Regulations and stakeholder demands around climate disclosure evolve rapidly. The chosen sustainability software should readily adapt to changing requirements while matching the growth of your organisation.
Ideally, the platform should:
- Expand its calculations as new emissions factors get released.
- Quickly build reports tailored to emerging disclosure standards.
- Scale user access and data collection across facilities and business units.
Carefully evaluate the release cadence for regulatory updates and the flexibility to handle your future growth projections.
Understanding Carbon Accounting Software Pricing
Carbon accounting software aims to provide cost-effective solutions for small and medium enterprises (SMEs) to track and reduce their carbon emissions. Here are some common pricing models:
Subscription-Based Pricing Models
Some carbon accounting platforms offer monthly or annual subscription plans based on:
- Number of users
- Different access levels (e.g. basic, professional, enterprise)
The more users and features required, the higher the subscription cost.
Variable Pricing Based on Emissions Tracking Volume
Other tools price based on total emissions tracked - charging per tonne of CO2e. As a company grows, so does the volume tracked. This pricing model allows high-growth companies, with increasing emissions, to scale cost-effectively over time.
Initial costs remain affordable for smaller businesses. Larger enterprises pay more as emissions rise to match larger operational footprints.
Comparing Cost Against Features and ROI
When evaluating options, balance software costs against features offered and potential return on investment from:
- Operational efficiencies
- Stakeholder engagement
- Risk mitigation through climate transparency
While cheaper tools have basic emissions tracking, more comprehensive analytics and reporting capabilities come at a higher price. Compare against business needs and sustainability goals.
Carefully weigh costs against long-term value creation. The rise of carbon accounting means taking early action now can save money later.
Evaluating Carbon Accounting Software Vendors
Evaluating solutions side-by-side can clarify the best fit for your priorities, growth goals, and budget. When selecting carbon tracking software, it's important to analyse a few key factors to determine the right solution for your organisation:
Analysing Implementation Timelines
Consider platform setup time alongside internal resource constraints when projecting time-to-value. The implementation timeline can vary greatly between solutions depending on the level of customisation, integrations required, and need for change management. Be sure to discuss these factors with the software vendor to properly set expectations before purchasing:
- How long does basic setup and configuration take? Is training and onboarding support included?
- What internal stakeholders need to be involved? Will additional hires be required?
- How easily can the software integrate with our existing tools and workflows?
- What is the typical timeframe we can expect from purchase to fully leveraging the platform?
Setting realistic timelines from the start enables better budgeting and planning. It also helps avoid choosing a solution that may take too long to implement given your sustainability reporting deadlines.
Ensuring Data Accuracy and Methodology Transparency
Review methodology disclosures to assess alignment with GHG accounting standards for reliable insights. The accuracy of carbon tracking software relies heavily on the emission factors and calculations used. Be sure to understand:
- Which emissions standards and data sources are used? Do they align with GHG Protocol?
- How are calculations validated? What is the margin of error?
- How often are emission factors updated based on latest research?
- What disclosures on methodology are provided? Can these be reviewed by internal teams?
Transparency here is key - you want to verify the science behind the software for confidence in the data integrity and quality of insights.
Seeking Carbon Accounting Certification and Compliance
Ensure that the software vendor is certified and complies with the relevant carbon accounting and reporting standards. Key certifications to look for include:
- GHG Protocol Software Compliance - Validates alignment with GHG accounting best practices
- ISO 14064-3 - Ensures independent verification of calculations
- SOC 2 Type 2 - Confirms security practices for handling sensitive company data
Prioritising solutions holding these certifications helps reduce compliance risk and ensures your carbon reports meet necessary reporting standards for disclosure. You want assurances that the software takes accuracy and compliance seriously.
Starting with Carbon Accounting: A Practical Guide
Carbon accounting refers to the process of measuring, monitoring, and reporting greenhouse gas (GHG) emissions from business operations. As stakeholders increasingly demand climate action and net-zero commitments, carbon accounting provides the foundation for managing and reducing an organisation's carbon footprint over time.
Embarking on this sustainability journey may seem daunting initially. However, following a systematic approach can set your business up for success. Here are practical steps to get started:
Identifying Business-Specific Carbon Footprint Sources
The first step is conducting a high-level review of major emission sources across the company's value chain. This includes:
- Direct emissions from owned or controlled equipment, vehicles, facilities, manufacturing processes, etc.
- Indirect emissions from purchased electricity and heat
- Supply chain emissions from procuring goods and services
- Product use phase emissions from customer energy consumption
Also document relevant existing data systems, stakeholder sustainability asks, and potential emissions reduction targets. This helps determine the scope and depth of carbon accounting needed.
With these insights, key software selection criteria can be aligned, such as compliance standards support, custom emissions factors, and integration capabilities.
Creating a Shortlist of Carbon Accounting Software Providers
Next research carbon accounting platforms that meet the defined feature and functionality needs, with room to scale as programs expand.
Shortlist vendors that stand out for product depth, company vision, implementation support services, and customer success stories. Reach out to top contenders for demo consultations tailored to the organisation's use cases and objectives.
Assess how each platform streamlines data collection, provides actionable insights, and enables progress tracking and reporting. Consider the level of stakeholder engagement offered to drive company-wide buy-in.
Engaging Stakeholders in the Selection Process
Involving key internal stakeholders early in the evaluation process ensures successful software adoption and maximum impact.
Sustainability, operations, finance, and IT leaders provide diverse perspectives to align on the top platform choice. Communicate how the software helps stakeholders achieve both sustainability KPIs and business KPIs.
Emphasizing the software's return on investment and quick time-to-value proposition secures leadership approval for procurement and rollout. Ongoing stakeholder participation in implementation and usage sustains long-term program success.
Following this collaborative process sets an achievable course towards comprehensive, value-driven carbon management. The rest is about taking consistent action to continuously enhance environmental performance over time.
Conclusion: Selecting the Right Carbon Tracking Solution
Choosing the right carbon tracking software is an important decision that can set your business on the path towards meaningful emissions reductions. This guide outlines key factors to consider as you evaluate options, including:
Summary of Considerations for Carbon Tracking Software
When selecting carbon accounting software, be sure to assess:
- Core capabilities - Ensure the platform provides robust emissions calculation, reporting, and analysis features tailored to your needs. Consider scope coverage, methodology, customisation, and automation capabilities.
- Ease of use - The system should have an intuitive user interface and workflow that enables easy data input and report generation without extensive training.
- Flexibility & integration - Pick a solution that can connect to your existing data sources and adapt as your tracking needs evolve over time. API and tool integrations are plusses.
- Cost-effectiveness - Carbon tracking software can represent significant IT investment - be clear on total cost of ownership before purchasing.
Next Steps Towards Carbon Neutrality
Once you've selected the right carbon accounting platform, next steps include:
- Importing historical emissions data to establish an emissions baseline
- Setting emissions reductions targets, then implementing reduction initiatives
- Using software reporting to track progress towards goals
Well-chosen software puts key emissions insights at your fingertips - accelerating paths to carbon neutrality.
