With the growing urgency of decarbonization, companies are forced to report on their carbon emissions. Traditional Excel sheets and manual carbon accounting tools are no longer sufficient for the complex carbon accounting landscape. The demand for a digitized solution that ensures accurate and reliable emissions disclosure is growing rapidly.
As per the report by Fortune Business Insights, the global carbon accounting software market is projected to reach $64.39 billion by 2030. That being said, currently, there are a lot of carbon accounting software companies offering various solutions for companies to analyze, calculate, measure, and report Greenhouse gas (GHG) emissions. Yet the major challenges like data accuracy, keeping up with new laws and regulations, and faster return on investment remain unsolved by most software providers.
The overarching goal of the Paris Agreement is to limit global warming to 1.5°C. For this, greenhouse gas emissions must peak before 2025 at the latest and decline by 43% by 2030. Under the enhanced transparency framework (ETF) of the Paris Agreement, starting in 2024, countries will have to report transparently on actions taken in climate change mitigation. Under the Climate Action Programme 2030 and the new Climate Action Act (Klimaschutzgesetz) the German government has made a binding undertaking to reduce greenhouse gas emissions by 55% by 2030. Additionally, with new regulations and laws like the Carbon Border Adjustment Mechanism (CBAM), it has become imperative for companies to seek holistic carbon accounting software and personalized support to navigate through this complex landscape.
To help you know more about CBAM, carbmee has recently published a whitepaper in collaboration with EY.
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Companies who invest in audit-grade carbon accounting software are better prepared to collect and manage their data, report their carbon footprints to relevant stakeholders, use accurate data for decarbonization strategies, and net-zero targets, and establish Science-based Targets (SBTi), while managing compliance and supply chain issues.
As we step into 2024, let's explore the top ten carbon accounting software solutions that are reshaping the landscape of environmental responsibility.
The Top Ten Carbon accounting Software in 2024
Recognized by Gartner Market Guide for Carbon Accounting Software in 2024 and Gartner Hype Cycle for Environmental Sustainability, 2023, carbmee’s Environmental Intelligence System (carbmee EIS™) leads in two major categories - Scope 3 GHG emissions data and carbon accounting software. With its specialization in Scope 3 and CBAM reporting, carbmee EIS™ platform solves most carbon-related problems offering faster time to value. Besides the TÜV Rheinland, Group PCF certification, carbmee recently achieved WBCD PACT (Partnership for Carbon Transparency) in order to standardize and automate the most prominent industry-related decarbonization challenges.
With a commitment to data accuracy, transparency, and efficiency, carbmee automates carbon footprint calculations across scopes 1, 2, and 3. carbmee’s purpose-built platform for complex supply chains - the Environmental Intelligence System (carbmee EIS™) sets itself apart by bridging the gap between transactional carbon accounting and Life Cycle Assessment (LCA). By combining carbon accounting with Life Cycle Assessment (LCA), carbmee empowers businesses to explore the granularity of carbon footprints linked to each transaction, fostering a detailed understanding of CO2-Footprint Management for Product, Corporate, and Supply Chain level integrated into one single operating system. Furthermore, it specializes in addressing Scope 3 emissions, particularly those stemming from the supply chain, by offering supplier-specific capabilities. This unique feature enables organizations to navigate and effectively manage granular emissions data accurately, helping identify and tackle carbon hotspots within the supply chain.
With carbmee EIS™, enterprises gain the power to make informed decisions and implement impactful reduction strategies.
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Persefoni offers a standardized approach, integrating emission factors and collaboration tools.
Persefoni excels in offering a user-friendly interface, making it accessible for businesses of all sizes. Its intuitive design facilitates easy navigation and implementation, providing a straightforward solution for carbon accounting and sustainability management.
Despite its user-friendly interface, Persefoni may lack some advanced features and Scope 3 competence that larger enterprises with complex sustainability requirements may need for in-depth analysis and reporting.
3. Microsoft Sustainability Cloud
Set to release on June 1, providing ESG capabilities for recording, reporting, and reducing environmental impact.
Microsoft Sustainability Cloud benefits from seamless integration with Microsoft's broader suite of business tools, providing a user-friendly environment. This integration facilitates efficient collaboration and data sharing across various business functions.
The reliance on Microsoft's ecosystem may limit interoperability with other third-party applications, potentially posing challenges for businesses with diverse software environments.
4. Net Zero Cloud by Salesforce
Built on Salesforce's automation and integration features, offering emissions reporting capabilities.
Net Zero Cloud leverages Salesforce's robust platform, enabling businesses to integrate carbon tracking seamlessly into their existing CRM infrastructure. This integration streamlines data management and ensures a more unified approach to sustainability and customer relationship management.
The dependency on the Salesforce platform may pose challenges for businesses using alternative CRM solutions, limiting flexibility and requiring a commitment to the Salesforce ecosystem.
5. IBM Environmental Intelligence Suite
Focused on risk analysis and response efforts, utilizing AI capabilities for climate risk analytics.
IBM's Environmental Intelligence Suite offers extensive data analytics capabilities, providing businesses with powerful insights into their environmental impact. The suite's advanced analytics can support sophisticated modeling and scenario planning for comprehensive sustainability strategies.
The complexity and advanced features of IBM's Environmental Intelligence Suite provide a strong focus on dashboards but may lack carbon footprint automation processes.
An ESG performance and risk accounting software emphasizing safety and liability reduction.
Sphera is recognized for its broad range of environmental, health, safety, and sustainability solutions. Its integrated approach allows businesses to manage multiple aspects of sustainability, providing a comprehensive solution for organizations with diverse needs.
The extensive features of Sphera provide a strong LCA emission database but have room for improvement regarding carbon footprint calculation and process automation. It might also be of a limited capacity, especially in open modeling, primary data collection, and scalability.
7. Sinai Technologies
Specializing in decarbonization through modeling and planning capabilities.
Sinai Technologies specializes in AI-driven sustainability solutions, leveraging advanced technology for precise carbon footprint assessments. The incorporation of artificial intelligence allows for real-time data analysis and decision-making.
The reliance on AI technology may pose challenges for businesses with limited resources or those less comfortable with advanced technological solutions.
Centralized data accounting for carbon emissions across supply chains.
Emitwise is known for its emphasis on real-time emissions tracking and reporting, providing businesses with up-to-date information for timely decision-making. This focus on immediacy can be crucial for organizations looking to respond swiftly to sustainability challenges.
The emphasis on real-time tracking may lead to higher data processing demands and potentially increased costs, particularly for businesses with large and complex operations.
Focuses on carbon-tracking solutions for SMBs, with limited scalability catering to a European audience.
Greenly distinguishes itself with its simplicity and ease of use. It is designed to be user-friendly and accessible, making it an attractive option for smaller businesses or those just starting their sustainability journey.
The simplicity of Greenly may limit its suitability for larger enterprises with more complex supply chain decarbonization efforts.
A collaborative carbon emissions accounting tool with a focus on team collaboration.
Sweep is recognized for its intuitive and visually appealing interface, making it easy for users to navigate and engage with sustainability data. The platform's emphasis on user experience enhances accessibility for businesses at various levels of technological proficiency.
While Sweep offers a visually pleasing interface, it may lack some of the advanced features needed by larger enterprises with complex sustainability requirements.
Tackling Supply Chain Emissions with Expertise and Perfection
While there are a significant number of carbon accounting software in the market, carbmee shines as the top choice for businesses looking to up their carbon tracking game. For businesses serious about sustainability, Scope 3 emissions are a big deal. These emissions come from the supply chain, and carbmee takes the lead by dealing with them in a supplier-specific way. This means businesses can pinpoint and handle supply chain hotspots. carbmee helps businesses make smart choices based on accurate data, reducing their impact on the environment.
Why choose carbmee?
1. A holistic solution
carbmee offers a holistic solution to carbon tracking by integrating Transactional Carbon Accounting and LCA. This unique combination provides businesses with a comprehensive view of their carbon impact. Through Transactional Carbon Accounting, carbmee EIS™ enables detailed insights into the carbon emissions associated with various transactions and activities. LCA further contributes by assessing the environmental impact across the entire life cycle of products, capturing emissions at every stage. This holistic approach equips businesses with a deeper understanding of their environmental footprint, facilitating informed decision-making and fostering sustainable practices across the entire value chain.
2. Supplier-Specific Scope 3
Navigating the complexity of Scope 3 emissions specific to suppliers in industries like Manufacturing or Automotive is a challenging task. The carbmee EIS™ platform tackles this challenge by aiding enterprises in managing Scope 3 emissions at the supplier level. This approach not only boosts environmental sustainability but also promotes transparency across the entire supply chain.
3. Smart Decision-Making
Empowering enterprises to make informed decisions, carbmee facilitates smart choices by leveraging accurate and granular transaction data and gaining insights into suppliers. This capability allows businesses to steer their green initiatives with precision, ensuring they are on the right path toward sustainability.
4. Strong and Strategic Partnerships
carbmee takes pride in its strong connections with global leaders and consultancies like Jaggaer, EY, Deloitte, and KPMG. The aim is to drive complete decarbonization efforts for industrial businesses. carbmee's partnership network focuses on enhancing customers' ability to successfully implement thorough decarbonization strategies.
These partnerships cover both technical and non-technical aspects, such as data support for collection and cleansing, intelligence, consulting, and strategy development for climate transformation, as well as verification and certification of results for external communication. Partners enjoy the advantage of capturing new business opportunities and expanding their service offerings through carbmee's EIS™ suite, eliminating the need for in-house software development.
This collaborative approach allows carbmee to cater to a broader customer base and contribute to global industrial decarbonization by assisting companies with complex supply chains in managing their carbon footprint effectively.
5. Seamless API Integration in Operating Systems
As a trusted solution provider committed to guiding organizations on their net-zero path and facilitating effective decarbonization strategies, carbmee excels in seamlessly integrating APIs into operating system systems. This includes crucial modules like ERP, Finance, Supplier, and Production Modules. Recognizing the importance of a successful usage experience, carbmee ensures that systems such as SRM, Risk Management, or ERP can be easily integrated, showcasing its capability to streamline and optimize the integration process for enhanced efficiency.
With an aim of becoming a market leader in solving end-to-end sustainability challenges, carbmee already serves some of the industry giants from Automotive, Manufacturing, Chemical, Pharmaceuticals, Med Tech, Hi-tech, Logistics, and FMCG sectors. carbmee EIS™ is already successfully implemented in internationally operating companies like Georg Fischer, Ingersoll-Rand, and Kärcher to name a few.
Beyond the Basics
As regulations evolve and organizations face increasingly strict reduction targets for end-to-end emissions, holistic and reliable carbon accounting software becomes integral to a growth-oriented and data-driven reduction plan. Leading the way in this landscape is carbmee, recognized by Verdantix and Gartner as a leading carbon accounting software for Environmental Sustainability.