Tracking and reporting carbon emissions is a critical task for SMEs today.
By leveraging the right carbon accounting software, SMEs can efficiently monitor their footprint, identify reduction opportunities, and demonstrate climate leadership.
In this post, we'll compare top tools on the market to help you select the best carbon reporting solution for your business needs and sustainability goals.
Want a definitive list of the best carbon accounting software? We’ve compiled a list here
Introduction to Carbon Reporting for SMEs
Understanding Carbon Reporting Software for SMEs
Carbon reporting software provides a way for small and medium-sized enterprises (SMEs) to measure, track, and report their greenhouse gas (GHG) emissions or carbon footprint. This type of software helps companies calculate emissions from their operations and supply chain, known as Scope 1, 2, and 3 emissions under widely adopted standards like the Greenhouse Gas Protocol. Core capabilities of carbon reporting tools include:
- Collecting activity data related to energy, water, waste, transportation etc.
- Applying appropriate emissions factors to quantify tonnes of CO2 equivalent (tCO2e) released
- Organising and aggregating emissions data into reports
- Identifying hotspots to focus reduction efforts
Using accurate carbon accounting helps SMEs establish a baseline footprint, set reduction targets, and make informed decisions to lower environmental impact. It also allows for transparency through sustainability reporting and helps ensure compliance with evolving climate disclosure regulations.
The Imperative of Carbon Accounting for SMEs
Carbon reporting is becoming imperative for SMEs due to increasing expectations from regulators, investors, large corporate buyers as well as consumers. Key drivers encouraging SME adoption of carbon accounting tools include:
- Regulatory requirements for environmental, social and governance (ESG) disclosures are making carbon reporting mandatory, especially in Europe.
- Access to green funding and investments that require SMEs to quantify and report emissions.
- Competitive advantage in bidding for contracts from large buyers that have set science-based climate targets across their supply chains.
- Cost savings from identifying operational inefficiencies via detailed carbon accounting.
- Future-proofing businesses against tightening emissions regulations and carbon pricing mechanisms.
The above factors mean carbon reporting software tailored for SMEs has become crucial not just for tracking their climate impact, but for thriving as sustainable businesses. Easy-to-use tools can help overcome limited resources and technical skills to provide the required climate transparency.
What is carbon reporting software?
Carbon reporting software provides businesses with a platform to measure, analyse, and report their greenhouse gas (GHG) emissions and overall carbon footprint. This type of software can help companies track emissions across their operations and supply chain, identifying the largest sources of emissions and opportunities to reduce environmental impact.
Here are some key capabilities of carbon reporting tools:
- Calculate emissions: The software allows users to input data on energy use, materials, transportation, waste, etc. to quantify GHG emissions using internationally recognised calculation methodologies.
- Track and visualise emissions: Users can monitor emissions over time and segment data by department, facility, project, or other categories. Built-in dashboards and graphs make it easy to visualize emissions sources.
- Generate reports for disclosure: The software automates reporting aligned with major disclosure frameworks like CDP and GRI to streamline climate action transparency.
- Set and manage emissions targets: Tools enable setting custom targets by scope, category or at the organizational level. This allows teams to be held accountable for sustainability objectives.
- Identify reduction opportunities: By highlighting the largest emissions sources, carbon reporting platforms guide users on where to focus reduction initiatives for maximum impact.
In summary, carbon reporting software brings simplicity to the complex task of accounting and reporting GHG emissions. For SMEs starting their net zero journey, these tools can be invaluable for planning, executing and communicating climate strategies both internally and with external stakeholders.
How do I report carbon emissions?
Reporting your company's carbon emissions can seem daunting, but following these key steps will ensure you capture the right data and identify reduction opportunities:
Gather Activity Data
The first step is to collect information on your company's activities that result in greenhouse gas emissions. This includes energy usage, transportation, waste, etc. Tracking this raw data will allow you to calculate emissions.
Calculate Your Emissions
Once you've gathered all relevant activity data, you'll need to convert that into the amount of emissions released. There are established emissions factors that translate activity data (e.g. kWh of electricity used) into the equivalent emissions (e.g. CO2e).
Identify Hotspots
With your emissions inventory complete, you can pinpoint the activities releasing the highest levels of emissions. Focusing reduction efforts here will have an outsized impact on lowering your overall carbon footprint.
Set a Baseline
Document your emissions for the reporting year to establish a baseline. This quantifies your starting point and allows you to measure future progress against it.
Make Improvements
Armed with your baseline and hotspot analysis, develop an emissions reduction plan targeting your highest emitting activities. As changes are implemented, continue monitoring to track their impact.
Disclose and Verify
Finally, disclose your emissions inventory in sustainability reports and other disclosures. Consider having your data third-party verified to provide assurance and meet stakeholder expectations.
Following this straightforward workflow will ensure accurate carbon reporting that drives meaningful emissions reductions. The key is converting activity data into emissions using standard factors, then prioritising reductions based on your hotspots and baseline.
What kind of software is available for assessing the carbon footprint?
Carbon accounting software provides companies with a way to accurately measure, analyse, and reduce their carbon footprint. There are a few key types of carbon accounting software on the market:
- Purpose-built carbon accounting platforms - These tools are specifically designed for in-depth carbon accounting and reporting. They include robust features to calculate emissions across all scopes and categories based on primary data inputs. Examples include Ecochain, Persefoni, and SINAI Technologies.
- Sustainability management software - Broader ESG and sustainability management platforms have modules for carbon accounting and reporting. They provide ways to track additional metrics beyond emissions. Examples include Enablon, Thinkstep, and UL EHS Sustainability.
- ERP bolt-ons - Some emissions accounting capabilities can be added to existing ERP systems, allowing companies to leverage their existing data infrastructure. Examples are SAP's Carbon Accounting and Reporting and IHS Markit's Climate Solutions.
The choice depends on the company's needs - whether they want a standalone carbon accounting system or one that integrates with other platforms. When comparing options, key factors are data coverage, calculation methodology, report customization, and user experience. An ideal solution balances functionality with ease-of-use.
What is the best app that helps track your carbon footprint?
Some of the top carbon footprint tracker apps available today include:
- TravelPerk's GreenPerk API: Integrates with travel booking systems to calculate emissions from business travel. Helpful for companies where travel is a major carbon contributor. Provides actionable insights to reduce travel footprint.
- Joro: Uses verified data to measure personal, household, or business carbon footprint from various sources. Offers offsetting and reduction advice based on your results. Easy to use with good visualizations.
- Klima: Tracks individual or company emissions across scopes 1, 2, and 3. Includes offset purchasing and progress tracking towards carbon neutrality. Helps engage stakeholders in climate action.
- Adva: Focuses on household carbon footprinting. Estimates footprint based on energy usage, travel, shopping, and more. Provides personalised reduction strategies for users. Simple and visually appealing.
- CoolClimate: Calculates footprint for households, events, transportation, etc. Uses research-grade methodology with the ability to tweak assumptions. Results can be shared to compare footprints.
- Capture: Portfolio carbon accounting tool designed for financial institutions. Analyses emissions associated with lending and investment portfolios. Supports climate risk analysis and disclosure.
The best app depends on your use case and goals around carbon measurement and reduction. Consider ease of use, data accuracy, visualisation, and actionability when evaluating options. Integrations with existing systems can streamline adoption.
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Criteria for Selecting Carbon Accounting Software
Must-Have Features in Carbon Reporting Tools
To accurately calculate a company's carbon footprint, carbon reporting software should contain key features like:
- Emissions calculations: The software should automatically calculate Scope 1, 2, and 3 emissions using verified emissions factors and methodology aligned with global GHG standards. This saves time versus manual calculations.
- Customisable reporting: Companies have unique operations, so the software should flexibly handle varied data sources and allow customisation of emissions reports.
- Data visualisations: Visual tools like charts, graphs and dashboards allow companies to easily analyze emissions data, identify trends and communicate insights with stakeholders.
Ensuring Accuracy and Compliance in Reporting
Credible carbon reporting relies on:
- Verified methodology: The software's emissions calculation methodology should be verified by independent, reputable organisations to ensure accuracy.
- Audit standards compatibility: Tools should be compatible with major environmental audit standards like ISO 14064 and the GHG Protocol to produce compliant reports.
- Transparent data sources: Trusted data sources like ecoinvent and DEFRA, and transparent calculations methodology are crucial for reliable results.
Customisation and Scalability of Carbon Software
The software should:
- Handle varied data types and formats to integrate with a company's existing data ecosystem.
- Flexibly scale from basic to advanced functionality to match current needs and grow alongside the business over time.
- Offer customisable dashboards to meet stakeholder reporting needs as sustainability initiatives expand.
Selecting the right carbon accounting platform requires balancing key criteria like accuracy, audit compliance, customization and scalability. Companies should assess options to find the best solution fitting their current and future business needs.
Carbon Accounting Software Comparison for SMEs
Assessing the best carbon accounting software option for your small-to-medium-sized enterprise (SME) involves carefully evaluating key features, pricing models and overall usability. This guide compares some top carbon reporting platforms to help you select the right solution.
Comparative Analysis of Carbon Software Features
When evaluating carbon accounting tools, here are some vital features to consider:
- Greenhouse Gas Protocol Standards - Ensure the software follows established global carbon accounting standards for scope 1, 2 and 3 emissions. This brings credibility and compliance.
- Customisability - The ability to tailor carbon reports for your specific operational data is essential for accurate tracking.
- Data Automation & APIs - Tools that automatically pull data from various business platforms through APIs save considerable manual effort.
- Offset Tracking - Monitoring emission reduction projects and carbon offset purchases is useful for net-zero tracking.
- Data Visualisation - Interactive charts and graphs to easily analyse emission trends over time and identify reduction opportunities.
- Stakeholder Reporting - Automated and customisable reports facilitate clear communication with investors, customers and regulators.
Choosing a carbon platform with features that align with your use cases ensures you extract the most value.
Understanding Carbon Accounting Software Pricing
Carbon reporting solutions offer varied pricing models - flat monthly fees, usage-based charges or hybrid options. Consider these aspects when evaluating affordability:
- Free Plans - Entry-level free products for basic tracking but with limited functionality. Upgrade fees apply for additional capabilities.
- Flat Monthly Fee - Simple predictable pricing, typically £50 - £150 monthly depending on features. Scales based on the number of sites/facilities.
- Per Metric Tonne - Charges apply for every tonne of emissions tracked. Costs add up for large enterprises.
- Custom Quotes - Larger complex projects require tailored pricing plans, supported through enterprise sales.
Ultimately the software ROI depends on matching capabilities to current & future needs within your budget.
User Experience with Carbon Reporting Solutions
Usability and intuitive interfaces enhance employee adoption for accurate carbon accounting across organisations. Key markers of great UX include:
- Easy Data Input - Minimal manual entry through automated data connectivity and calculations.
- Interactive Visualisations - Charts and dashboards that engage users and yield insights.
- Contextual Guidance - In-software tips explaining terminology and methodologies for new practitioners.
- Accessible Support - Responsive customer assistance for any application issues faced.
- Mobile Responsiveness - Flexible accessible carbon tracking from mobile devices facilitates use for dispersed teams.
Evaluating carbon reporting software holistically on features, pricing and usability helps SMEs determine the optimum solution fitting their sustainability needs and business resources. The goal is to strike the right balance between power, affordability and ease-of-use in a carbon accounting platform.
Best Practices for Carbon Software Implementation
Securing Buy-In for Carbon Reporting Initiatives
Gaining support from leadership and employees is critical for the success of any carbon reporting initiative. To secure buy-in:
- Present the business case, emphasizing cost savings, risk mitigation, investor demands, and marketing benefits
- Connect sustainability goals to core business objectives
- Highlight how software can simplify carbon accounting and automate reporting
- Provide training to build knowledge and alleviate concerns over data collection
Assigning an executive sponsor and green team ambassadors across departments can further drive engagement.
Expert Support for Carbon Accounting Implementation
Working with consultants or leveraging customer success representatives during initial software rollout is highly recommended to:
- Ensure proper methodology and data integrity
- Customise platforms to capture all relevant emissions sources
- Interpret results and identify reduction opportunities
- Realise the platform's full value through personalised guidance
Their expertise saves time and money while maximizing carbon accounting accuracy.
Integration Strategies for Carbon Reporting Tools
To centralize data flows, carbon software should interface with:
- Energy, fuel, waste, and other core emissions data sources
- Financial reporting systems tying spend to Scope 3 emissions
- ERPs and inventory management platforms
APIs streamline integration. For databases without APIs, scheduled data uploads provide automation.
Prioritising connections with the largest emissions contributors first allows faster insights. As processes mature, further systems can be linked.
Strategies for Achieving Carbon Reduction Targets
Setting Science-Based Carbon Reduction Targets
Companies can leverage carbon reporting software to set science-based targets aligned with the latest climate science. Key features include:
- Access to emissions factor databases and benchmarking data to model different reduction pathways
- Ability to set custom targets for 2030 and 2050 aligned to 1.5°C trajectories per SBTi criteria
- Tools to forecast future emissions based on growth projections and model the impact of reduction initiatives
Setting ambitious, science-based targets is an important first step on the net-zero journey. Software can provide the methodology, data, and insights needed to develop a robust, science-aligned strategy.
Monitoring and Tracking Carbon Footprint Over Time
Once targets are set, carbon reporting tools enable companies to continuously monitor emissions performance over time. Companies can:
- Automatically import energy, transportation, and supply chain data into a centralised database
- Visualise historical emissions trends across scopes 1, 2, and 3
- Receive alerts when progress towards targets is off-track prompting corrective actions
Ongoing tracking ensures targets remain a priority amid business growth and other changes. Software enables regular check-ins to course correct and keep reduction efforts on pace.
Exploring Carbon Offsetting and Removal Options
For unabatable emissions, high-quality carbon offsets can provide flexibility in achieving net-zero goals. Key features include:
- Searchable marketplace to identify verified offset projects aligned to company values
- Retirement and reporting of offset credits matched to residual emissions
- Guidance on developing a science-based offsetting strategy as part of a comprehensive decarbonization plan
While reduction takes priority, offsets help neutralize emissions as companies work to transform business practices and technologies long-term. The right software provides offsetting tools while emphasising a transition off offsets through aggressive reduction actions over time.
Conclusion: Selecting the Best Carbon Software for Your SME
Choosing the right carbon reporting software is crucial for SMEs to effectively track, analyse, and reduce their carbon emissions. As we have seen, there are a few key factors to consider when evaluating options:
Carbon Reporting Software Checklist for SMEs
- Automated Data Collection ✅
- Custom Reporting & Dashboards ✅
- Stakeholder Engagement Tools ✅
- Compliance Reporting Standards ✅
- Affordable Pricing for SMEs ✅
EcoHedge offers a blend of automated emissions tracking, visual reporting, collaborative features, global compliance support, and pricing scaled for small businesses - an optimal balance for most SMEs.
Step-by-Step Implementation Guide for Carbon Software
Rolling out carbon accounting software takes careful planning and execution:
- Define Scope - Determine which operations, facilities, transport modes, etc. to include based on business goals and stakeholders.
- Collect Data - Compile 12 months of energy, materials, logistics, and other emissions-related data.
- Enter Data - Input data into software under appropriate categories and establish tracking workflows.
- Analyse & Report - Leverage automated analytics and reporting to uncover insights and share progress.
- Monitor & Improve - Use software to continuously monitor emissions, identify reduction opportunities, and track performance over time.
With the right solution in place, SMEs can transform carbon reporting from a burden into an opportunity to build trust and drive climate action.
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