As the global economy undergoes a rapid transition towards net-zero emissions, manual carbon accounting is no longer a viable option for businesses that wish to remain competitive. As sustainability risks and opportunities intensify across the corporate landscape, companies that want to ensure accuracy and reliability when measuring and disclosing data relating to their sustainability performance are ultimately required to source a digital carbon accounting solution.
Carbon accounting, or ‘greenhouse gas accounting,’ is the systematic methodologies, measurement, and monitoring used to evaluate and quantify the amount of carbon dioxide equivalents (CO2e) an activity or entity emits. However, many organisations lack awareness of the strategic potential of utilising a practical carbon accounting and decarbonisation platform.
What is carbon accounting software?
The vital role of technology within carbon accounting is irrefutable due to the decisive role of software in allowing companies to streamline and automate their sustainability management (e.g. carbon accounting). As a result, companies can collate their carbon data in one unified platform, measure their carbon footprint, create scientific targets, and plan to reduce their emissions all in one place. Meanwhile, several carbon accounting software enable organisations to engage their internal and external stakeholders and report on their emissions to ensure compliance with non-financial regulatory and reporting frameworks.
A comprehensive carbon accounting software - such as Plan A’s Carbon Management Platform - uses Scopes 1, 2 & 3 emissions calculators in line with the GHG Protocol methodology to streamline businesses’ carbon accounting, lay the groundwork for setting science-based targets (SBTs) and thus streamline sustainable transformation.
Using sustainability software versus building internal sustainability solutions
Multiple spreadsheets often burden internal solutions, data stored in several departments, and a need for more expertise on emission factors and emissions analysis. Meanwhile, a SAP Insights survey found that under one-third of mid-market executives are fully satisfied with the data quality at their disposal to drive sustainable transformation. Meanwhile, the same study reported that 86% of organisations still use spreadsheets to measure emissions data.
These figures underline that many businesses are caught up using endless spreadsheets to collect, track and analyse data surrounding their sustainability performance when they could alternatively join the increasing number of companies leveraging the power of carbon accounting software to maximise the accuracy and reliability of data.
On the contrary, businesses that use software can efficiently bulk upload data from various departments and stakeholders to effortlessly measure their total corporate carbon footprint (CCF) and value chain emissions. As companies increasingly adopt software to revolutionise their sustainability management capacities, they can benefit from enhanced efficiency via automated emissions calculations, vast cost savings, enhanced stakeholder transparency and improved brand resilience.
Beyond the enormous strategic opportunities that carbon accounting software facilitates, businesses that adopt carbon accounting software can mitigate risks such as reduced employee engagement due to lacking sustainable commitment, more significant internal costs due to increased waste, and fines or administrative costs due to not complying with policies or regulations.
As a carbon accounting expert, I strongly advocate for using sustainability software over building internal solutions. Leveraging data-driven software ensures more accurate and reliable data collection, measurement, and tracking, which is fundamental for sustainable transformation. Unlike cumbersome internal solutions reliant on spreadsheets, advanced software offers automated emissions calculations, streamlined data integration across departments, and enhanced stakeholder transparency. This not only boosts efficiency and cost savings but also strengthens brand resilience and mitigates risks related to compliance and sustainability commitments.
- Johannes Weber, Director of Sustainability Solutions @ Plan A.
The 5 best carbon accounting software of 2024
Looking for the best carbon accounting software to meet the specific sustainability needs of your business? We have ranked the 5 best options on the market in 2024:
1. Plan A
Plan A offers a certified carbon management platform, science-based expert support, and a network of service partners to guide businesses through their transformational decarbonisation journey, turning them into leaders of tomorrow’s net-zero economy. The green-tech pioneer combines cutting-edge technologies and the latest scientific standards and methodologies (certified by TÜV Rheinland and GHG Protocol compliant) to deliver automated CO2 emissions calculation, carbon reduction planning, regulation and audit-proof ESG reporting—empowering businesses to manage their entire net-zero journey all in one platform.
Plan A provides end-to-end carbon analysis that allows businesses to efficiently measure and reduce emissions in scopes 1, 2, and 3, decarbonise operations and value chains, comply with ESG regulations, and communicate performance to internal and external stakeholders. Additionally, Since 2017, Plan A has boasted an in-house team of experts in sustainability, carbon accounting, decarbonisation, policy, and customer success, ensuring the sustainability journey of their clients is seamless. Plan A’s prominent reputation in the world of carbon accounting software is reflected in its expansive customer base that includes leaders such as N26, BNP Paribas, Chloé, Flix, Sorare, BMW and Trivago. Plan A is also a global exclusive partner to VISA. Plan A has received several awards, including the Generali’s SME EnterPRIZE Award and the prestigious Europas Award.
2. IBM's Environmental Intelligence Suite
The IBM Environmental Intelligence Suite is a legacy software focused on data management. Functioning as an emissions management software, it offers rudimentary climate risk analytics with the assistance of IBM's AI capabilities. A significant component of IBM's offering revolves around risk assessment and response strategies. Its attributes empower organisations to monitor disruptive climate patterns, aiming to integrate carbon accounting into operational processes. For businesses searching for carbon accounting software tailored for sizeable corporations and equipped for projecting future carbon emissions, the IBM Environmental Intelligence Suite may be a suitable choice. However, it may provide a more personalised experience than many organisations require.
3. Salesforce's Net Zero Cloud
Net Zero Cloud by Salesforce reflects Marc Benioff's (Salesforce CEO) dedication to addressing climate change. This carbon accounting platform leverages Salesforce's prowess in automation, language support, and integration features. While such features equip it with valuable emissions reporting capabilities, the platform is ultimately constrained by its reliance on an existing data schema that wasn't inherently designed for accounting purposes. Meanwhile, assessments of its overall scalability have produced mixed results. However, the platform's dashboard functionality remains robust, and Net Zero Cloud has established formidable partnerships, including key players such as Accenture.
4. Microsoft Sustainability Cloud
The Microsoft Sustainability Cloud extends Microsoft's commitment to sustainable initiatives. This offering allows companies to document, disclose, and curtail their environmental impact via Microsoft's Sustainability Manager. Microsoft envisions customers leveraging this platform to magnify progress and reshape their business strategies through robust environmental, social, and governance (ESG) capabilities. However, the carbon accounting solution may be best suited for mid-market and small-to-medium business (SMB) clients, yet definitive conclusions still need to be made.
5. Sphera
Sphera is a comprehensive ESG performance and risk management software under The Blackstone Group's umbrella. Sphera approaches emissions management through a lens of integration, emphasising organisational safety enhancement and liability reduction to foster trust and cultivate a positive environmental image. Sphera's carbon accounting software centres on dissolving information silos by centralising reporting, data, and management tools. In addition, Sphera’s platform cultivates collaborative efforts within teams dedicated to safety and sustainability pursuits.
How to choose the best carbon accounting software for your company
There are 10 key criteria businesses must consider while browsing for the most effective carbon accounting solution.
Companies looking to make a meaningful impact on the environment must choose a carbon accounting software aligned with GHG Protocol Methodology. GHG Protocol supplies the world's most widely used greenhouse gas accounting and is essential for ensuring accuracy and reliable carbon management. From an operational perspective - prioritising a platform that is easy to use, provides intuitive and data-driven insights, and has a team of real-world climate experts behind it is essential to setting your organisation up for sustainability success.
- Nick Dale, Chief Product Officer @ Plan A.
Essential features to look for in carbon accounting software
More details about essential features of carbon accounting software can be found in our dedicated article.
Still unsure which carbon accounting software is best for your business? Click here to learn more about Plan A’s leading carbon accounting platform.
As the global economy rapidly transitions towards net-zero, businesses that do not take the lead on sustainability will be unable to remain competitive. Rather than using internal sustainability solutions, companies must integrate carbon accounting software into their broader corporate strategy. Due to the high number of carbon accounting software vendors on the market, companies must remember to look for a comprehensive and user-friendly platform underpinned by data that is decarbonisation-oriented, scalable, and able to be tested before purchasing.
Book a demo with Plan A today to kickstart your net-zero journey.