Knowledge & Insights about Environmental Impact & Carbon Management | Carbmee

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Explore a curated selection of our resources designed to empower your journey toward sustainable transformation, from insightful blogs and thought-leading webinars to in-depth whitepapers and in-person events.

Expertise to drive sustainable transformation

At the turn of the quarter century, we face a converging set of forces reshaping society: climate change, intensifying natural shocks, tightening resource constraints, shifting geopolitics, evolving demographics, rising social expectations, and the accelerating sweep of AI and digital technologies. For businesses, these dynamics bring more than increased risk - they will define which models remain investable, insurable, and licensed to operate.

While none of this is entirely new, the scale and speed of change have raised the stakes. For example, between 2020 and 2024, the European Union recorded average annual economic losses from climate and weather-related extremes of around EUR 45 billion - a 127% increase from the previous decade.

As these pressures intensify, the question is no longer whether to respond, but how. The most future ready organisations are reframing volatility as opportunity - transforming risk into resilience, and resilience into value. Here are three strategic levers we see leading businesses using to make that shift.

Engineer value through sustainable design

Sustainable design, guided by the 4R principles: Reduce, Reuse, Replace, and Recycle - aligns business models and products with a resource-constrained, cost-competitive world. Circular approaches such as product-as-a-service, repair, and reuse can not only stabilise revenue but also reduce exposure to volatile input costs. Lower-impact product lines open pathways to expanding markets seeking cleaner, smarter solutions. Even simple design choices, such as minimal-waste packaging, can define brand identity - signalling quality, responsibility, and innovation while reducing operational and compliance costs.

As an example, Philips has embraced circular economy principles across several product lines. By designing medical devices for remanufacturing and reuse, they reduce dependency on virgin raw materials - some of which are subject to geopolitical or tariff-related risk. This not only cuts environmental impact but also strengthens supply security.

Resilient supply chains are a foundation of business continuity. Improving the visibility and monitoring of supply networks through a combination of digital tooling and supplier engagement programmes can limit exposure to labour, regulatory, climate and nature risks and bolster investor confidence. Integrating sustainability into procurement decisions, enforcing high supplier-standards, and forging long-term supplier partnerships strengthens reputation and can ensure preferential access to materials. Working across industries in coalitions on regenerative agriculture or green materials, for example, can drive systematic change, spread innovation costs and position participants to lead as markets and regulations evolve.

As an example, Apple, highly dependent on Chinese manufacturing, began shifting parts of its supply chain to other countries like India and Vietnam. For instance, iPhone production has increasingly moved to Foxconn and Pegatron facilities in India to reduce exposure to Chinese tariffs and geopolitical risks.

Deepen trust through social value creation

Trust, earned through measurable contributions to people and society, underpins business performance. Empowering employees by investing in skills, flexible work models, and purposeful career pathways builds credibility from the inside out, whilst also creating a motivated, adaptable workforce. Managing technological shifts responsibly - by developing digital capabilities, safeguarding data privacy, and preparing for AI adoption demonstrates integrity and safeguards stakeholder confidence. Investing in local and regional economies through partnerships, infrastructure, and enterprise development extends trust outwards, fostering economic development and reinforcing the license to operate.

Competitive advantage itself is being redefined by the forces reshaping the global economy. These three levers – 1) Engineering value through sustainable design, 2) Building resilient supply chains, and 3) Deepening trust through social value creation - help businesses translate that shift into tangible performance through protecting revenues and gaining access to preferential financing deals. The organisations that lead in the next quarter century will be those that see sustainability not as constraint, but as the engine of competitiveness.

The following post is an excerpt from Carbmee’s Industry Benchmark Report, 2026 Green Transformation in Practice, which analyzes year-over-year trends in energy, carbon, and sustainability execution across industrial sectors. Based on insights from over 100 senior decision makers, the report features expert perspectives from leaders at Jaggaer, PwC, and ERM. In this excerpt, we spotlight one of those expert interviews, offering a first-hand view into how leading organizations are navigating the challenges and opportunities of green transformation in 2026. 

Transforming climate and social risks into resilience and value | Carbmee

Future-proof your business by reframing volatility as opportunity. Learn how sustainable design and resilient supply chains secure long-term competitiveness.

Transforming climate and social risks into resilience and value

The global economy is entering a phase of structural transformation. Energy systems and carbon intensity are no longer peripheral operational factors. They are becoming central determinants of industrial competitiveness, capital allocation, and long term corporate viability.

Across regions and sectors, regulatory frameworks are tightening, financial markets are integrating climate and energy risk into valuation models, and customers are demanding transparency and accountability across value chains. These developments are not cyclical. They represent a permanent shift in how economic activity is evaluated and governed.

In this context, delay is not a neutral option. Organizations that postpone action increase their exposure to regulatory risk, energy price volatility, cost inflation, supply chain disruption, and loss of market access. The strategic question is no longer whether to act, but how quickly and how systematically action is taken.

A central challenge remains the integration of carbon into core management processes. Emissions are still frequently treated as reporting outputs rather than steering inputs. This must change.

Carbon needs to be modeled, priced, and managed with the same discipline applied to cost, revenue, and risk. Only when emissions are visible at the level of products, processes, and investment decisions do they become controllable. Only then can organizations shift from retrospective disclosure to forward looking governance.

This shift is already underway. Leading industrial companies are embedding emissions data into procurement, product design, and capital expenditure planning. They recognize that carbon intensity increasingly determines access to markets, financing conditions, and long term profitability.

Decarbonization therefore follows the logic of every major industrial transition. Early integration creates strategic freedom. Late integration creates structural constraints.

From Environmental Metric to Economic Variable

Transformation requires both immediate execution and long term orientation. These are not opposing approaches. They are mutually reinforcing.

Immediate action establishes data foundations, organizational capabilities, and credibility with regulators, investors, and customers. Long term planning ensures that early decisions remain aligned with future technological pathways, policy developments, and market expectations.

Organizations that attempt to plan exhaustively before acting lose time and momentum. Organizations that act without a long term framework risk inefficiency and misallocation. Effective transformation integrates both dimensions from the outset.

Decarbonization is not primarily a cost factor. It is a structural redesign of industrial systems. It affects energy sourcing, production technologies, logistics, product architecture, and supplier relationships. This redesign creates competitive differentiation.

Companies that move early shape standards, build resilient supply chains, secure access to capital, and attract scarce technical and managerial talent. Companies that move late are forced into reactive compliance under time and cost pressure.

The distribution of advantage is therefore asymmetric. Benefits accrue disproportionately to those who integrate decarbonization strategically rather than tactically.

Leaders must treat energy and carbon as core strategic variables, not as delegated sustainability topics. This requires board level governance, integration into financial and operational systems, and continuous alignment with regulatory, technological, and market developments.

This involves three immediate responsibilities.

First, establish transparency across energy use and emissions at the level of products, processes, and suppliers to create a reliable decision basis.

Second, integrate energy and carbon metrics into investment, procurement, and product decisions so that transition performance becomes economically relevant.

Third, build organizational capability by aligning incentives, developing expertise, and embedding accountability at every management level.

The transformation is already underway. The relevant variables are speed, depth, and quality of integration. Organizations that act now and plan ahead will define the next phase of industrial leadership. Those that hesitate will adapt under constraint.

The choice for leaders is therefore not between sustainability and performance. It is between strategic leadership and strategic dependency.

Energy and Carbon as Determinants of Industrial Leadership | Carbmee

Discover why energy and carbon are now core drivers of industrial competitiveness. Learn how leading companies are integrating emissions data into strategy to gain market, regulatory, and financial advantage.

Energy and Carbon as Determinants of Industrial Leadership 

The recent findings of the Sustainability in Practice 2026 survey indicate that sustainability is firmly established within companies, with almost two-thirds of respondents rating their organization commitment as high or very high. However, implementation remains challenging. 

For half of the companies surveyed, budget restrictions are the biggest obstacle (50%), followed by supply chain complexity (42.3%) and a lack of data and key performance indicators (KPIs) (38.5%). It’s becoming increasingly clear that sustainability is no longer just a matter of communication, but a question of resource allocation and strategic management.

In recent years, sustainability has increasingly become the responsibility of the CFO. This is a logical development, as the challenge today is to reconcile short-term financial goals with long-term sustainability ambitions. The majority of respondents (58.7%) find this balance difficult. 

From my practical experience, I know that companies that consistently integrate sustainability into their financial planning, risk management, and investment decisions are more successful in implementation and create the necessary transparency for internal and external stakeholders. It is equally crucial to embed sustainability in strategic planning and product development – as an active response to market and environmental changes.

Companies that integrate sustainable innovations into their product portfolios and business models early on not only ensure regulatory compliance but also gain competitive advantages in a rapidly changing environment.

The survey also shows that sustainability is being considered across departments in many companies: In addition to purchasing and production, research and development, finance, HR, and governance are increasingly involved. Nevertheless, there is still room for improvement in cross-departmental collaboration – only one-third of respondents rate cross-departmental cooperation as effective.

The most important drivers for sustainability initiatives are customer expectations (54%), internal conviction (47%), regulatory pressure (43%), and investor requirements (34%). This underlines that sustainability is not only driven by regulation but is also demanded by customers and is gaining importance from within the organization itself. The PwC Global Investors Survey 2025 reflects this picture. According to this survey, 61% of the investors surveyed would increase their investment in companies that use sustainability data for efficiency gains and 53% for climate resilience.

To accelerate the transformation, companies primarily want better data and analyses (49%), clearer regulatory guidelines (48%), more budget and resources (50%), and stronger collaboration with suppliers and partners (45%). Technological innovations – for example, in the areas of carbon management, circular economy, and AI-supported analytics – are also seen as important levers.

Data-based tools like Carbmee make a decisive contribution here: They enable companies to make sustainability decisions on a solid data basis and to transparently measure progress. In practice, we at PwC support our clients in using the data provided by Carbmee specifically for the transformation – from the identification of emission hotspots to the management of measures and reporting. The combination of technology, data expertise, strategic integration, and joint implementation is the key to translating ambitious sustainability goals into concrete results and securing long-term competitiveness.

Experts with Insights: Gunther Dütsch, Expert in Climate Transformation and ESG Tech, PwC

Discover why 61% of investors back data-driven sustainability. Solve Scope 3 complexity and bridge the budget gap with Carbmee’s AI-supported carbon management.

Most manufacturing companies now regard supply-chain decarbonization as a high or very high priority, and rightly so. The Carbon Border Adjustment Mechanism (CBAM) is the first regulation to impose a concrete and enforceable requirement on companies to obtain granular, product-level emissions data from their suppliers. While some organizations are currently unaffected or only marginally impacted - given that CBAM initially applies to iron, steel, aluminum, cement, fertilizers, electricity, and hydrogen - its scope is expected to expand over time, and further regulatory instruments are already emerging. 

In parallel, the EU’s Corporate Sustainability Reporting Directive (CSRD), underpinned by the European Sustainability Reporting Standards (ESRS), is materially raising the bar for emissions disclosure across Scope 1, Scope 2, and - critically - material Scope 3 categories. Together, these frameworks move emissions reporting away from high-level estimates and proxy-based calculations toward consistent, auditable, and decision-grade data. Although CBAM reporting obligations for importers have been in force since 1 October 2023, 2026 marks the transition from reporting to a direct cost obligation through the purchase and surrender of CBAM certificates. 

Companies should therefore treat CBAM and adjacent regulation not merely as compliance exercises, but as catalysts to reassess sourcing strategies through a total value of ownership (TVO) lens - balancing cost, risk, resilience, and carbon intensity in a more explicit and quantifiable way.

Regulatory Pressure Is Forcing a New Standard for Supply-Chain Emissions Data

This development extends well beyond regulatory compliance. It has become a financial and capital-markets issue. There is growing evidence that European capital markets increasingly price climate- and transition-related risks, while there is far less evidence that investors reward decarbonization claims in the absence of verifiable, decision-grade data. In practice, financing benefits materialize only where emissions reductions - particularly in the supply chain - are measurable, auditable, and demonstrably embedded in procurement, sourcing, and capital-allocation decisions. 

This reflects a broader shift among institutional investors away from decarbonization as a signaling exercise toward decarbonization as a component of risk assessment: ambition is acknowledged, but only credible data influences valuation, lending conditions, or access to sustainable finance.

Decarbonization Has Become a Financial and Capital-Markets Imperative

Producing this level of evidence increasingly depends on the integration of emissions modelling with core procurement data. For Scope 3 emissions in particular, effective decarbonization requires a shift away from industry averages and spend-based proxies toward supplier-specific or product-level primary data derived from actual purchasing activity. 

Linking emissions factors directly to transaction-, supplier-, and material-level data within procurement systems enables organizations to identify emissions hotspots at category, supplier, or product level. It also allows progress to be measured over time, providing a defensible basis for supplier engagement, sourcing decisions, and credible communication with investors, auditors, and regulators.

From Averages to Action: Why Scope 3 Decarbonization Requires Procurement-Level Data

Historically, procurement has focused primarily on cost, quality, and supply risk, with sustainability considerations often treated as secondary or peripheral. That balance is now shifting. 

As carbon increasingly translates into a measurable cost driver - through regulation, supplier pricing, and financing conditions - procurement leaders are confronted with two practical questions: where reliable emissions data can be obtained, and how that data can be operationalized to reduce total cost while delivering measurable decarbonization outcomes.

Procurement at the Center of Carbon, Cost, and Risk Management

Addressing these questions requires tighter integration between sustainability intelligence and procurement execution. In the collaborative setup between carbmee and JAGGAER, sustainability-relevant data can first be identified, validated, and contextualized, and then systematically embedded across the source-to-pay process. At the outset, procurement organizations can enrich spend analytics with ESG-relevant information, including greenhouse-gas emissions data and selected risk indicators such as country- or supplier-specific exposure. 

These insights can then inform category and sourcing strategies - for example by explicitly weighting carbon intensity or decarbonization trajectories alongside traditional cost and risk criteria in energy-intensive categories. Based on these strategic choices, supplier-management approaches can be adjusted, including the phased replacement of high-emission suppliers or the targeted onboarding of alternatives with more favorable emissions profiles. 

Non-financial information, combined with defined category strategies, directly informs sourcing decisions by enabling a TVO-based comparison that incorporates sustainability, regulatory exposure, and risk factors in addition to commercial terms. ESG certifications, audit status, and risk assessments can be applied as differentiators where pricing is equivalent, or as gating criteria through policies that restrict RFP participation to suppliers meeting defined sustainability thresholds. Contract management then provides the legal foundation for this collaboration. 

Automated contract management supports the consistent application of sustainability-related clauses, reduces manual effort, and mitigates the risk of omissions, ensuring that regulatory and reporting requirements are contractually anchored. All relevant information is subsequently available to buyers in the downstream procure-to-pay (P2P) process, enabling sustainability criteria to be reflected not only in strategic sourcing decisions but also in operational purchasing behavior.

Embedding Sustainability Intelligence Across the Source-to-Pay Lifecycle

While some of the required data already exists within organizations, a substantial share must be sourced from external data providers. This is where the integration between JAGGAER and carbmee becomes relevant. Direct integration enables access to supplier-specific emissions data that can be used during live sourcing events, supporting fact-based comparisons and decision-making. 

By combining JAGGAER with carbmee, organizations can measure and communicate the carbon footprint of products, improve transparency across Scope 1, 2, and 3 emissions, identify Scope-3 hotspots, and define actionable reduction pathways. More importantly, they can embed decarbonization into procurement as a managed cost driver and risk factor, rather than treating it as a parallel sustainability initiative detached from commercial decision-making.

Turning Integrated Data Into Measurable Decarbonization Outcomes

What Regulators and Capital Markets Now Demand of Procurement | Carbmee

From Averages to Action: Why Scope 3 Decarbonisation Requires Procurement-Level Data | by Sami Heil, Jaggaer

What Regulators and Capital Markets Now Demand of Procurement

2026 Green Transformation in Practice

The evolving landscape of environmental regulations and corporate responsibility is rapidly transforming carbon emissions from an externality into a tangible cost factor. Through mechanisms such as carbon taxes, border carbon adjustment mechanisms (CBAM), and internally implemented carbon pricing strategies, organizations are increasingly facing direct financial implications tied to their greenhouse gas footprint. 

This fundamental shift necessitates a paradigm change in how businesses approach environmental sustainability. It is no longer sufficient to treat emissions as a separate operational concern; rather, organizations must strategically integrate the modeling of their emissions data alongside core financial data. This holistic approach empowers businesses to make risk-aware and cost-efficient decisions, driving both financial success and environmental stewardship. 

By understanding the financial implications of their carbon footprint, companies can proactively mitigate risks, identify opportunities for cost reduction through emissions abatement, and ultimately enhance their long-term resilience and competitiveness in a carbon-constrained world.

To effectively link emissions to financial strategy, organizations must establish clear and measurable metrics that bridge the gap between environmental impact and economic performance. Key metrics to consider include:

A self-imposed cost on carbon emissions generated by an organization's internal operations. This price can be used for internal decision-making, such as evaluating investment opportunities or incentivizing emissions reductions across different departments or business units.

Strategic Significance: Provides a mechanism to internalize the cost of carbon, fostering a culture of emissions awareness and accountability. Enables the evaluation of projects and investments based on their true cost, including their carbon impact. Can drive innovation in low-carbon technologies and processes.

An assessment of the potential financial risks associated with non-compliance with various carbon regulations and reporting requirements in different geographical regions where the organization operates or has value chain activities. This includes analyzing the stringency of regulations, potential penalties, and the likelihood of future regulatory changes.

Strategic Significance: Highlights areas of significant regulatory risk, allowing organizations to prioritize compliance efforts and potentially restructure operations or supply chains to minimize exposure. Informs strategic decisions regarding market entry and expansion based on the carbon regulatory landscape.

The cost associated with reducing a specific amount of greenhouse gas emissions through a particular project, technology, or operational change. This metric is typically expressed as cost per ton of CO2 equivalent reduced ($/tCO2e).

Strategic Significance: Enables a comparative analysis of different emissions reduction opportunities, allowing organizations to prioritize the most cost-effective abatement strategies. Crucial for developing carbon reduction targets and pathways that are economically viable. Supports informed decision-making regarding investments in low-carbon technologies.

A modified return on investment calculation that incorporates the financial impact of carbon emissions (e.g., carbon taxes, avoided compliance costs, internal carbon price). This provides a more comprehensive view of a project's profitability by accounting for its environmental performance.

Strategic Significance: Offers a more accurate assessment of the long-term financial viability of projects and investments, particularly those with significant carbon implications. Can reveal hidden costs or benefits associated with emissions that traditional ROI calculations might overlook. Encourages investment in projects with lower carbon footprints and higher overall value.


Metric: Scope 1, 2, and 3 Emissions Tracking

Comprehensive monitoring and reporting of direct emissions from owned or controlled sources (Scope 1), indirect emissions from purchased electricity, heat, or steam (Scope 2), and all other indirect emissions that occur in an organization's value chain (Scope 3).

Strategic Significance: Provides a complete understanding of an organization's carbon footprint, identifying key emission hotspots and areas for targeted reduction efforts. Essential for accurate carbon accounting, reporting to stakeholders, and setting meaningful reduction targets. Forms the foundation for effective carbon pricing strategies.

Defining the Key Metrics for Integrated Carbon-Financial Analysis

Despite the clear strategic importance of integrating carbon pricing with financial strategy, organizations often encounter several hurdles in implementation:

Lack of Integration Between Carbon Pricing and Core Financial Processes: A significant challenge arises when carbon pricing mechanisms are not effectively linked to established financial processes such as procurement decisions, capital expenditure planning, and budgeting cycles. This disconnect can lead to a siloed approach where sustainability initiatives are treated separately from core business operations, limiting their impact and hindering the realization of potential cost savings and risk mitigation.

Difficulty in Accurately Estimating Project ROI with Carbon Factors: Traditional return on investment (ROI) calculations often fail to adequately account for the financial implications of carbon emissions. Estimating the future costs associated with carbon regulations, the potential benefits of emissions reductions (e.g., reduced energy consumption, lower tax liabilities), and the long-term value of investing in low-carbon solutions can be complex and uncertain. This lack of clarity can make it difficult to justify investments in abatement projects or to accurately compare the financial viability of different options.

Absence of Seamless Data Integration Between Financial and Carbon Accounting Systems: Many organizations lack the integrated data infrastructure required to efficiently track, analyze, and report on both financial and carbon-related data in a unified manner. This can lead to manual data reconciliation, increased administrative burden, and a lack of real-time insights into the financial impact of carbon emissions across the value chain. The inability to seamlessly connect these data streams hinders the development of effective carbon pricing strategies and the ability to make data-driven decisions.

Limited Understanding and Buy-in Across Different Departments: Integrating carbon pricing into financial strategy requires collaboration and understanding across various departments, including finance, procurement, operations, and sustainability. However, a lack of awareness or buy-in from key stakeholders can create resistance and impede the implementation process. Finance teams may not fully grasp the materiality of carbon risks, while operational teams may struggle to see the financial benefits of emissions reduction initiatives.

Complexity and Uncertainty of Evolving Carbon Regulations: The global landscape of carbon regulations is constantly evolving, with new policies and reporting requirements emerging at different levels of governance. This complexity and uncertainty can make it challenging for organizations to anticipate future compliance obligations and to accurately assess their long-term carbon-related financial risks. Staying abreast of these changes and translating them into actionable financial insights requires dedicated resources and expertise.

Overcoming Common Implementation Challenges

Effectively integrating carbon considerations into financial decision-making transforms carbon management from a compliance burden into a strategic advantage:

Transforms Carbon into a Tangible Financial Lever: By assigning a financial value to carbon emissions through internal pricing mechanisms or by explicitly accounting for carbon-related costs and revenues in financial analysis, organizations can incentivize emissions reductions and drive more sustainable business practices. This financial lever can influence investment decisions, operational efficiencies, and product development strategies.

Significantly Reduces Compliance Risk and Optimizes Capital Allocation: A deep understanding of carbon regulations and the financial implications of non-compliance allows organizations to proactively manage their regulatory risks. By incorporating carbon costs into financial planning, businesses can make more informed capital allocation decisions, prioritizing investments in projects and technologies that minimize their carbon footprint and reduce future compliance burdens.

Empowers Cost-Effective Emissions Reduction Strategies: By analyzing the abatement costs associated with different emissions reduction opportunities and factoring in the financial benefits (e.g., energy savings, tax incentives, revenue from low-carbon products), organizations can identify and implement the most cost-effective pathways to achieve their emission reduction targets. This data-driven approach ensures that sustainability goals are pursued in a fiscally responsible manner.

Enhances Stakeholder Engagement and Attracts Sustainable Finance: Integrating carbon performance with financial results demonstrates a commitment to sustainability and transparency, which can enhance engagement with investors, customers, employees, and other stakeholders who are increasingly prioritizing environmental considerations. Furthermore, strong carbon management practices can improve access to sustainable finance options, such as green bonds and impact investments.

Fosters Innovation and Creates New Business Opportunities: The focus on reducing carbon emissions can drive innovation in cleaner technologies, more efficient processes, and the development of new low-carbon products and services. By integrating carbon into financial strategy, organizations can identify and capitalize on these emerging business opportunities, creating new revenue streams and enhancing their long-term competitiveness.

The Strategic Imperative of Financial-Carbon Integration

Carbmee provides a powerful platform for bridging the gap between carbon emissions and financial strategy through its custom properties. Organizations can leverage fields such as:

Internal Carbon Price: Directly integrate the internally defined cost of carbon into procurement and operational data, allowing for real-time analysis of the carbon-adjusted cost of goods and services.

Abatement Cost: Track and analyze the cost-effectiveness of various emissions reduction initiatives at a granular level, informing investment decisions and prioritization of abatement projects.

Compliance Risk Score: Quantify and monitor the level of risk associated with different carbon regulations across the value chain, enabling proactive risk mitigation strategies and resource allocation for compliance efforts.

Carbon-Adjusted ROI: Calculate a more comprehensive return on investment for projects by incorporating the financial impact of their carbon emissions, providing a clearer picture of long-term value creation.

Lifecycle Emissions Data: Integrate comprehensive lifecycle assessment data into financial models to understand the full carbon impact of products and services, supporting informed sourcing and product design decisions.

Harnessing Carbmee’s Custom Properties for Integrated Insights

Define internal carbon price and compliance exposure by region

Assign carbon pricing fields to procurement, projects, and suppliers

Link emissions impact to cost and ROI fields

Run abatement scenario models to prioritize high-impact initiatives

Book a demo to align emissions and capital allocation.

How to Start Embedding Carbon into Financial Strategy

Get insights into how carbon pricing is transforming enterprise decision-making in the Sustainability Intelligence Report 2025.

Carbon pricing is not a future issue, it’s a present business variable. With Carbmee, you can:

Integrate carbon into investment and procurement workflows

De-risk your operations and align with global reporting mandates

Carbon is now financial. Plan for it accordingly—Carbmee is ready to help.

Download the Sustainability Intelligence Report 2025

Carbon Pricing & Financial Strategy: Link Emissions and ROI | Carbmee

Learn how to model carbon pricing into procurement, CapEx, and ROI strategy to align sustainability and financial goals with Carbmee.

Carbon Pricing in Practice: Integrating Emissions into Financial Strategy for Enhanced Business Performance

In an era where environmental responsibility is crucial, most companies commit to reduction targets, yet do not know how to actually tackle their Scope 3 emissions. Measuring, reporting, and reducing Scope 3 emissions is both a completely new and highly complex challenge. Supply chain decarbonization is still in its early stages and there is an escalating demand for solutions. 89% of companies are using or currently searching for a Scope 3 digital solution, meaning they want to manage their emissions with software, not with service providers.

carbmee is a recognized vendor of carbon management software with a strong commitment to developing and providing a software solution that will empower companies to get their carbon under management. It is carbmee's vision to drive the sustainable transformation of businesses with environmental intelligence to achieve net-zero by 2050. Therefore, it comes as no surprise that carbmee is incorporating all technological advancements to stay at the forefront of carbon management innovation. 

Whatever technological possibilities exist, carbmee will incorporate the latest innovations into the software, constantly improving the product and using every tool available to empower companies to achieve net zero. While specifically focusing on improving sustainability, carbmee is among other technological start-ups that aim to revolutionize supply chain management with AI.

carbmee´s cutting-edge software enables businesses to measure, reduce, and report emissions in their supply chain with unparalleled accuracy and efficiency. Through advanced data matching techniques with generative AI, carbmee is able to provide granular emission data for massive amounts of data at speed, ensuring precise tracking and management of carbon footprints.

Tackling Scope 3 emissions with intelligent software solutions

carbmee has integrated Gen AI into its carbon accounting software to revolutionize how businesses manage their emissions. Here’s how carbmee stands out:

Gen AI enables carbmee to match customer data with emission data from comprehensive databases such as Ecoinvent. This process ensures that emission data is highly accurate and specific to each item, providing businesses with detailed insights into their carbon footprint.

A key aspect of carbmee’s approach is to focus on excelling at data matching and modeling processes while relying on strong partners like ecoinvent to provide the best emission data. With this clear objective, carbmee´s software solution outperforms in data matching, delivering highly accurate footprint calculations. Gen AI-driven data matching enables companies to measure, report, and reduce their emissions as efficiently and effectively as possible.

Generative AI can handle vast amounts of data efficiently, making it suitable for big data applications. By using generative AI, big bulks of data can be processed efficiently in carbmee EIS™,  enabling the system to provide granular emission data for all items in the supply chain. It is only with this level of detail and granularity that businesses can meet stringent sustainability targets and regulatory requirements.

GenAI models understand the context around data points, leading to more accurate matches. The precision of generative AI in data matching leads to highly accurate emission reports. This accuracy helps companies make informed decisions about their supply chain operations, ultimately contributing to more effective carbon reduction strategies.

Tracking Scope 3 emissions presents several challenges, including inconsistent data sources, varying emission factors, and a lack of standardized methodologies. carbmee’s generative AI addresses these issues by providing:

Consistent Data Integration: carbmee´s incorporated AI ensures seamless integration of data from multiple sources, maintaining consistency and accuracy.

Standardized Emission Factors: Using comprehensive databases like EcoInvent, carbmee standardizes emission factors across the supply chain.

Real-Time Data Insights: The speed of Gen AI data processing and its processing power to handle massive amounts of data, leads to real-time data insights in carbmee EIS™. It enables companies to make timely decision-making.

Overcoming Challenges in Scope 3 Emissions Tracking

carbmee’s innovative use of generative AI in its carbon management software marks a significant advancement in the fight against climate change. By ensuring accurate, granular emission data, carbmee empowers businesses to take effective action towards reducing their carbon footprints. As the world moves towards stricter environmental regulations and greater sustainability demands, technologies like generative AI will be crucial in achieving these goals. 

The integration of generative AI into carbon accounting is just the beginning. As AI technology evolves, its applications in sustainability will expand, offering new ways to optimize supply chains and reduce emissions. Exciting AI-powered developments in carbmee EIS™ for analysis, forecasts, and scenario modeling are in the making already - stay tuned.

Leading the sustainability transformation with AI-powered climate tech

The complexity of tracking Scope 3 emissions requires powerful solutions. Gen AI significantly contributes to achieving emission data precision and reliability. Learn how Gen AI fuels data matching in carbmee EIS™.

Gen AI Enhances Scope 3 Emissions Tracking with carbmee EIS™

Discover how carbmee uses Generative AI for precise Scope 3 emissions tracking. Learn about enhanced data matching and accuracy for supply chain decarbonization.

Leveraging Generative AI for Supply Chain Decarbonization with carbmee EIS™

Streamlined Energy and Carbon Reporting (SECR) is a regulatory framework ensuring large UK businesses report on their energy and carbon emissions. It mandates public disclosure of energy usage, associated greenhouse gas (GHG) emissions, and a description of actions being taken to improve energy efficiency year-over-year.

SECR requirements apply to all UK-incorporated quoted companies on stock exchanges, large UK-incorporated companies not quoted on exchanges, and large limited liability partnerships (LLPs). Companies also may elect to participate in SECR voluntarily as a means to improve their energy consumption and carbon footprint.

The primary purpose of SECR is to encourage greater corporate environmental responsibility. By mandating transparency, the regulations raise awareness of energy costs, provide actionable data for improving energy efficiency, and drive reductions in carbon emissions. SECR aligns with global standards promoting net-zero emissions by helping balance greenhouse gas output with carbon removal efforts.

Submitting a SECR report is mandatory for all companies quoted on UK stock exchanges and any unquoted company or LLP designated as "large." A company is considered large if it meets at least two of the following three criteria within a reporting period.

Annual turnover (or gross income): £36 million or more

Balance sheet assets: £18 million or more

Even if a company is classified as large, it may be exempt from SECR reporting if it can demonstrate that its energy consumption during the reporting period was 40,000 kWh or less.

Who Is Required to Submit an SECR Report?

To ensure full SECR compliance, affected companies must include a specific set of metrics and disclosures in their annual reports.

Electricity usage, both for powering operations and transportation

Gas consumption for both mobile and stationary activities

Transportation fuel consumption is used for purposes such as fueling company vehicles and minibusses

Emissions intensity ratio, which is a metric measuring emissions from one year to the next

The methodology used to calculate the required information

A narrative explaining steps being taken to improve energy efficiency

Prior year figures for comparison, when applicable

What Are the SECR Reporting Requirements?

SECR disclosures must be integrated into your organization's annual filings submitted to Companies House. The specific report depends on your company type:

1. Quoted & Unquoted Companies: Include the SECR report within the Directors' Report.

2. LLPs: Submit a dedicated Energy and Carbon Report alongside the annual report.

3. Companies, where energy use and carbon emissions are of particular strategic importance: Include it in your strategic reports. 

4. Charitable Organizations: Integrate it into the combined Directors' and Trustees' Annual Report.

The reporting deadline is based on your company’s financial year and should be aligned with deadlines for your annual reports.

How Does the SECR Reporting Process Work?

Participating in the SECR framework, whether mandatory or voluntary, provides several key business advantages:

Enhanced Risk Management: Analyzing energy and carbon emission patterns helps identify risks associated with energy waste and climate factors, leading to better strategic decisions.

Potential Cost Savings: Actively monitoring energy consumption often reveals opportunities to reduce usage, improve efficiency, and lower operational costs.

Improved Transparency and Accountability: Demonstrating environmental responsibility through clear reporting can enhance your company's reputation among investors, customers, and stakeholders.

Regulatory Compliance: For obligated businesses, the most direct benefit is achieving compliance and avoiding the financial and reputational risks of penalties.

What Are the Benefits of SECR Compliance?

Failure to comply with the SECR guidance can lead to significant financial penalties. The Conduct Committee of the Financial Reporting Council can levy fines for non-compliance. Additionally, since reports are submitted with your annual reports to Companies House, the agency can reject your application and make you submit it again if you fail to include SECR information. This can trigger late filing penalties from £150 up to £7,500, depending on the size of your company and how late you end up filing.

What Are the Penalties for Non-Compliance With SECR?

Companies often face several challenges when preparing their first SECR report. 

1. Data Collection: Gathering accurate and complete energy and emissions data can be time-consuming and resource-intensive without an automated system.

2. Inconsistencies: Using different measurement and reporting methods across departments or locations can lead to unreliable, inconsistent data.

3. Complex Supply Chains: Accurately calculating indirect emissions from sources you don't own or control (Scope 3 emissions) can be particularly difficult.

Overcoming these SECR challenges requires more than spreadsheets. It demands a powerful, carbon management solution with Scope 3 tracking capabilities. Enter Carbmee!

What Are the Common Challenges in SECR Reporting (And How to Overcome Them)?

Carbmee’s carbon management platform is designed to simplify and automate your SECR reporting process. Here’s how you can benefit:

Automate Data Collection: Seamlessly gather energy and emissions data from across your operations, eliminating manual errors and saving valuable time.

Identify Decarbonization Opportunities: Use our powerful analytics to pinpoint areas for energy optimization, helping you reduce both emissions and costs.

Produce Audit-Ready Reports: Generate comprehensive, audit-ready reports that demonstrate your progress over time and satisfy all SECR disclosure requirements.


Book a free demo today to streamline your SECR reporting!

Automate SECR Compliance With Carbmee & Save Valuable Time

SECR regulations affect UK-based quoted companies of any size, as well as large unquoted companies and large Limited Liability Partnerships (LLPs) that meet specific size thresholds related to turnover, assets, or number of employees.

The deadline for an SECR report is aligned with your company’s standard financial year-end filing deadline. The SECR information must be included within your annual report, such as the Directors' Report, which is submitted to Companies House.

Yes. A company that otherwise qualifies for SECR reporting can be exempt if its total energy consumption over the reporting period is 40,000 kWh or less. However, to claim this exemption, you must first accurately calculate your total energy use. An SECR report example can help clarify which sources (such as electricity, gas, and transport fuels) need to be considered before referencing the exemption in your Annual Directors’ Report.

How Can Companies Simplify the SECR Process?

Using a carbon management software like carbmee EIS™ can streamline data collection, ensure methodological consistency, and automate report generation—saving time and reducing the risk of non-compliance.

Can Voluntary SECR Reporting Benefit My Business?

Yes. Even if not legally required, voluntarily adopting SECR can demonstrate environmental leadership, improve stakeholder trust, and uncover opportunities for energy efficiency and cost savings.

Definition: SECR is a UK government framework requiring large companies to report their annual energy use and carbon emissions.

SECR Reporting Requirements: Companies must report total energy use, greenhouse gas (GHG) emissions (including Scopes 1 and 2), an emissions intensity ratio, and a narrative on energy efficiency measures.

Goal: SECR aims to increase awareness of energy costs, promote energy efficiency, and help reduce carbon emissions in line with global net-zero goals.

Find out what the Streamlined Energy and Carbon Reporting (SECR) framework means for businesses in the UK and what you need to do to stay fully compliant.

SECR: Master Reporting Requirements & Stay Compliant

SECR reporting doesn't have to be complex. Find out how to master key requirements, ensure compliance, and drive decarbonization. Get informed at Carbmee!

Masterclass: Why CBAM Is a Value-Creation Challenge — And Why Supplier Engagement Decides the Outcome

The financial implications of carbon management are often underestimated. However, strong carbon performance doesn’t just protect the environment — it unlocks significant financial benefits. From preferential financing terms to tax incentives, companies with effective decarbonization strategies are finding new avenues for financial growth.

Research reveals that many companies are unprepared for the financial risks related to carbon and environmental regulations. According to the Carbmee Sustainability Intelligence Report 2025, only 8% of companies believe they are well-prepared for carbon-related financial risks. This lack of preparation exposes businesses to vulnerabilities, with research indicating that unprepared companies may face 5-25% of their EBITDA at risk by 2050 due to climate-related risks.

For companies taking proactive steps toward decarbonization, the rewards can be substantial. Sustainability-linked loans, which now account for a significant portion of the EMEA loan market, offer interest rate discounts for meeting environmental targets. Additionally, reducing carbon emissions can lead to lower capital costs, as companies with strong ESG performance often enjoy better financing terms.

Studies have shown that each ton of emissions reduced can translate to lower financing costs, potentially saving millions for companies in carbon-intensive sectors like manufacturing and automotives. Moreover, government incentives and subsidies for green investments can significantly offset initial costs, allowing companies to save money while improving sustainability.

The Financial Benefits of Decarbonization

Decarbonization & Financial Advantage | Carbmee

Carbon performance unlocks financial value. Strong management cuts risk, saves costs, and boosts returns—beyond environmental benefits.