Investors, regulators, customers, and employees are increasingly pressing businesses to develop a climate change action plan. Companies must do accurate carbon accounting in order to undertake robust climate programs.
Thankfully, there are many choices available for carbon accounting software. These resources give businesses the technology they need to develop comprehensive decarbonization plans.
In this guide, I ranked and reviewed the 5 best carbon accounting software applications in 2023.
- SINAI
- Carbon Analytics
- Watershed
- Persefoni
- Net0
A good carbon accounting software can offer a lot of useful features, but these features generally fall under three categories:
- Data collection
- Data analysis
- Sustainability reporting
By systematically gathering a variety of data types throughout the year, pre-defining data allocation and reporting rules, and offering a rich suite of tools to verify data completeness and quality before the reporting season begins, carbon accounting software can assist in automating the end-to-end process in terms of data collection and measurement.
Then, you may compare the sustainability performance over time to specified KPIs or benchmarks.
By guaranteeing data integrity and auditability at each stage of the process, from data collection at the source through to report preparation, carbon accounting software produces financial-grade reports.
By offering focused insights and enabling individuals to produce sustainable results in their business area, you can make sustainability relevant across varied stakeholder groups with access to a shared, trustworthy source of information.
Before we dive in, there are some terms that will be useful to learn first.
Scope 1 emissions
Direct emissions from resources that the corporation owns and controls are considered scope 1 emissions. In other words, a set of actions taken at the corporate level directly cause emissions to be discharged into the environment.
It is separated into four groups:
- Stationary burning. Fuels and heating sources are included.
- Mobile combustion. This covers any fuel-burning vehicles a company owns or controls. Trucks, vans, and cars are a few examples.
- Fugitive combustion. This includes the greenhouse gas emissions from air conditioners and refrigerators.
- Process emissions. These are released during manufacturing procedures and industrial processes. for instance, the release of carbon dioxide during the making of cement.
Scope 2 emissions
Scope 2 emissions are indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat, or cooling.
Scope 3 emissions
Scope 3 includes emissions that are caused by actions from assets up and down the firm’s value chain, but not by the company itself or as a result of their ownership or control of such assets.
When we purchase, utilise, and discard things from suppliers is an illustration of this. All sources outside of scopes 1 and 2 are included in scope 3 emissions.
In a nutshell, Scope 2 deals with the electricity that the end user uses. The energy that utilities use for transmission and distribution is covered by scope 3.
What are the 5 Best Carbon Accounting Software Applications in 2023?
My top picks are SINAI, Carbon Analytics, Watershed, Persefoni and Net0.
1. SINAI
SINAI is a technology startup with headquarters in San Francisco that automates how businesses monitor, price, evaluate risk, and lower carbon emissions globally.
There are 5 platforms within the SINAI software, namely:
- Inventories
- Baselines
- Low-Carbon Scenarios
- Internal Carbon Pricing
- Value Chain Management
Inventories
You can quickly determine your GHG inventory using SINAI. By combining, sorting, and filtering emissions data, comparing emissions sources, and comparing resource usage, the platform makes it simple to find trends, patterns, and emissions hotspots.
The system includes an emissions factor database that includes data from the EPA, IPCC, GHG Protocol, DEFRA, and many other organisations.
Carbon emissions calculations that are transparent and auditable can be completed with ease thanks to the configurable emissions factors.
Utility and other resource data may be effortlessly tracked across your organisation and supply chain by simply integrating and automating uploads.
Baselines
You can compare “business as usual” emissions trajectories against reduction targets with the aid of SINAI.
By utilising predictive analytics on resource consumption and emissions trends, you may gain insights and business information that will help you understand carbon emissions across various business units and make informed decisions.
You may accurately create a comprehensive depiction of your organization’s trajectory and use it to assess the chance for influence and the risk to the climate with enough carbon accounting data.
After that, you may incorporate estimates from internal and external models to streamline peer benchmarking and assess your position in the market.
Low-Carbon Scenarios
SINAI uses financial and environmental impact modelling to assist you in finding the greatest decarbonization options and investing in long-term solutions.
You can choose projects from reputable providers and examine the costs of mitigation alternatives that are too expensive to be reduced internally in order to make up for your carbon emissions.
Internal Carbon Pricing
You may monitor how well your company is doing in relation to its emissions goals using SINAI. You can set an internal carbon price strategy and value thanks to this. This enables seamless quantification of targets, emissions gaps, and carbon budgets.
Value Chain Management
SINAI gives your company the tools it needs to engage your value chain and look for chances to achieve your company’s decarbonization goals, particularly with regard to Scope 3 emissions.
With allocations based on science, the carbon accounting software helps you get primary carbon data from suppliers. You can even use its global databases to predict relevant emissions for missing data points. This reduces the amount of work and data gathering gaps.
You can invite and manage your suppliers’ emissions data with just one click. SINAI will take care of the remainder for the vendors and ensure that they are providing you with the correct data.
Visit their website for more information.
2. Carbon Analytics
Carbon Analytics is a carbon accounting software for small and medium businesses. It links with your accounting program and generates thorough carbon footprint data automatically for use in reporting, marketing, and development.
The GHG Protocol Corporate Accounting and Reporting principles from WRI and WBCSD serve as the foundation for the basic methodology of the carbon accounting software platform, which is a tried-and-true industry standard.
In order to free up time for improvement rather than measurement, it automates the challenging carbon footprinting measures by transforming data you already have in your accounting systems into their carbon and water equivalents.
Along with reducing carbon emissions, you should not be afraid to confidently share your accomplishments with your customers, partners, and stakeholders.
You can demonstrate your comprehension of your affects and advancements through the Carbon Analytics certification program.
Integration
Through a one-time setup, you can integrate your accounting software with Carbon Analytics.
Analysis
Every transaction you make is evaluated by Carbon Analytics, which calculates the carbon footprint of all your purchases, including your coffee. You can manually input the registered names and industries of your suppliers, or Carbon Analytics will do it for you.
Report
You can use the full breakdown of carbon footprint by scope and supplier and company-level summary provided by the carbon accounting system to assess historical trends and take appropriate action.
The program provides you with high-level overview of the whole footprint, a breakdown by Scope 1, 2, and 3, the industry, and even historical patterns.
Visit their website for more information.
3. Watershed
Watershed is an enterprise carbon accounting software platform backed by Sequoia Capital and Kleiner Perkins and counts leading companies such as Shopify, Walmart and Airbnb as its customers.
Watershed helps you with managing carbon emissions by providing the following products:
- Measure
- Reduce
- Remove
- Report
Measure
Watershed’s carbon data engine assesses emissions for every line item of your organization after integrating tens of thousands of emissions components from governmental publications, LCA dashboards, academic studies, and corporate reports.
Scope
The Greenhouse Gas Protocol’s Scope 1, 2, and 3 are measured by the carbon emissions management tool, which also uses methodology for remote work, cloud computing, cryptocurrency, food, clothing, and other industries.
You can track carbon down to each source with the aid of Watershed. Instead of relying on industry averages, Watershed allows you to carry out precise calculations for individual vendors and collaborate with them to reduce emissions.
Uploading data
Simply upload raw data on finances, structures, travel, and other topics, and the carbon accounting program will handle the rest.
Simple drag-and-drop operations or automation through the Watershed API can complete the procedure.
Dashboard
Line-by-line drill-downs by scope, category, vendor, location, and more are possible with the real-time dashboard, which also provides dollar-for-dollar comparisons to others in your sector.
Reduce
The logical next step is to take action to reduce emissions after measuring your carbon output. Watershed works with you to develop a comprehensive plan based on a cutting-edge estimate of future emissions and then establish challenging Net Zero targets in accordance with strict guidelines.
Decarbonize your power
For your structures, data centers, and remote workers, you may purchase renewable energy with Watershed. The business evaluates projects to make sure they have an impact and assists you in matching purchases with your local power grids.
Remove
You can participate in high-quality carbon removal through the Watershed Marketplace with the aid of the carbon accounting software.
You may permanently remove carbon from the environment while also assisting in the development of the market for innovative solutions thanks to Watershed’s access to cutting-edge carbon removal technologies.
The Watershed team thoroughly reviews every project to make sure it has a significant impact.
Report
Reporting comes as the last phase. With investor-grade reports that are audit-ready, Watershed makes it simple for you to communicate your progress.
Watershed reports adhere to international standards including TCFD, CDP, SASB, and GRI as well as regional requirements like SECR in the UK.
Your CDP report can be prepared and submitted by the Watershed climate expert team, who will also collaborate with outside auditors.
Visit their website for more information.
4. Persefoni
Persefoni is definitely one of the best carbon accounting software out there. You may use the carbon accounting software to quickly determine your organization’s carbon footprint and create a comprehensive greenhouse gas inventory spanning Scope 1, 2, and 3 that is completely compatible with the Greenhouse Gas Protocol without any technical expertise.
Compliance
The Greenhouse Gas Protocol and Partnership for Carbon Accounting Financials frameworks are both fully adhered to by Persefoni. The Greenhouse Gas Protocol, the world’s gold standard in carbon accounting, is followed in all calculations.
You may address scenarios with either highly granular or very limited data sets by supporting every calculation method across every calculation type.
Beginner-friendly
The user interface and support features of Persefoni are designed for people who have no previous training or experience with carbon accounting. Carbon accounting is made simple by Persefoni, which offers certified carbon accounting specialists on call to support you, as well as assistance with understanding what is material and what you should track.
Complete Transparency
The CO2e Ledger from Persefoni was created so that customers could pass rigorous audit and assurance procedures for disclosure and reporting requirements.
You can instantly access all calculation frameworks, formulas, data, and emission variables used to assure accuracy when reporting to authorities or investors.
Automated Emission Factors & Secondary Data Calculation
All you need to do is bring your activity data and Persefoni takes care of the rest. Along with being automatically updated within the platform, the primary global Emission Factor sets from the IPCC, IEA, EPA, and DEFRA as well as additional secondary data like flight paths or sector-based EIO are also included.
This makes it unnecessary for your organization to keep numerous data sources.
Easy
With data imports and setups through API automation or bulk upload, you can get up and running in a couple of days. The carbon accounting software platform is intuitively created to be able to be used without any prior understanding of carbon accounting or data.
Visit their website for more information.
5. Net0
Net0 is a carbon accounting software that helps sustainability teams in large businesses measure, reduce and disclose carbon emissions.
The products that Net0 offers include:
- Measure
- Reduce
- Report
- Offset
- Automate
- Certify
Measure
With the help of the carbon accounting system, you can measure Scope 1, 2, and 3 carbon emissions accurately and without the need for specialised knowledge because the emission calculations are totally automated.
Reports
Granular reports are accessible at any time and on any device. The public, investors, and members of your team can all see an interactive dashboard.
Data Collection
The carbon accounting software uses the most recent algorithms and emission factors to automatically convert company data into emissions from your invoicing and ERP systems.
Scopes
The system calculates emissions for your whole supply chain across the three primary Scopes, including the long tail Scope 3.
Reduce
Your company may achieve its climate goals with the aid of the carbon accounting software, which helps you create goals and monitor performance against standards.
Simulation
The carbon accounting solution comes with an AI-powered simulation functionality to predict the impacts of business changes on your carbon footprint.
Goal Setting and execution
You can include teams in efforts to reduce carbon emissions and help team members reach their goals by using the Net0’s initiative planning capabilities.
Report
You can display your progress on a fully-hosted dashboard that is available to anybody with a link by using the Net0 real-time dashboard.
On-demand reports
When creating reports, you have a variety of data structures and formats to pick from. The reports contain a breakdown of Scope 1, 2, and 3, offset history, and a CSV export option for the raw data.
Offset
Sometimes, cutting back on greenhouse gas emissions is simply not enough. Your company might need to consider compensating unavoidable emissions. That is also taken care of by Net0.
Granular offsets
The programme for carbon accounting is very adaptable and dynamic. It gives each team member the ability to select their own offset projects in detail.
Certificates
By showing validated certificates that are supplied as soon as the offset is finished, you can promptly communicate that you are carbon neutral.
Automate
With the help of Net0, you can instantly link to your ERP, CRM, and other systems, allowing you to combine your carbon inventory on a single platform and convert data from third parties into emissions data.
Automated Parsing
Simply upload your bills and invoices, and Net0 will take care of processing the data and automatically generating the carbon emission statistics.
API
The Net0 API makes data collecting much simpler for developers. Your software systems can use Net0 to programmatically retrieve emission data.
Certify
Your verified certificates are stored on a platform that uses a blockchain. You can showcase them in print, on your websites, and on social media.
Visit their website for more information.
Summary
If you represent a firm looking to manage and cut your carbon emissions, hopefully this article helps you pick the best carbon accounting software application.
