Carbon accounting software helps businesses measure and manage their greenhouse gas emissions. Here's what you need to know:
- Automates data collection for Scope 1, 2, and 3 emissions
- Generates reports for ESG frameworks and regulatory compliance
- Prices range from a few thousand to over $100k per year
- Key players: Climatta, Microsoft Sustainability Cloud, Salesforce Net Zero Cloud, Persefoni
Top features to look for:
- Automated data integration
- Comprehensive emissions tracking (all scopes)
- User-friendly interface
- Scalability as your business grows
Quick Comparison:
| Software | Standout Feature | Main Drawback | Market Share |
|---|---|---|---|
| Climatta | Easy setup, no hardware | New player | Unknown |
| Microsoft Sustainability Cloud | Microsoft integration | Weak on Scope 3 | Not given |
| Salesforce Net Zero Cloud | CRM-based platform | May not scale well | 0.66% |
| Persefoni | Enterprise-focused | Expensive for small businesses | 1.03% |
Choose wisely - the right tool can slash your carbon accounting time from months to weeks.
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1. Climatta
Climatta is the new kid on the block in carbon accounting software. They're calling themselves the "TurboTax and QuickBooks for ESG compliance." Sounds fancy, right? Let's break down what they're actually offering.
Data Integration
Climatta's big selling point? Automated data collection. No more manual number-crunching for your ESG reports. They pull all your sustainability data into one place, creating a single source of truth. It's like having a digital filing cabinet for all your ESG stuff.
Emission Tracking
When it comes to tracking emissions, Climatta covers all the bases - Scope 1, 2, and 3. But here's where it gets interesting:
- They plug directly into your utility providers. Real-time data, anyone?
- You can see your carbon footprint broken down by business units, locations, and activities. It's like a carbon GPS for your company.
Reporting Tools
Climatta knows ESG disclosure regulations are a headache. So they've cooked up some nifty reporting features:
- Customizable dashboards: Build your own ESG data views. It's like Lego, but for sustainability metrics.
- Compliance-ready reports: They spit out reports that tick all the boxes for major ESG frameworks. No more regulatory nightmares.
Standards Support
Climatta's got you covered on the standards front. They support:
- SEC climate disclosure requirements
- CSRD reporting
- GHG Protocol
It's like having a Swiss Army knife for ESG standards.
Now, let's get real for a second. Climatta is the new kid on the block. They don't have the track record of some of the old-timers in this space. But their focus on making things easy and automated? That's pretty appealing.
Pricing-wise, they're keeping their cards close to their chest. But they do offer two main plans:
- Basic Plan: Automated ESG data collection and a central dashboard.
- Pro Plan: All the Basic goodies, plus fancy insights, analytics, and that utility provider integration we talked about.
No hardware needed, and they promise quick setup. For businesses looking to jump into carbon accounting without a big upfront investment, Climatta might be worth a look.
2. Microsoft Sustainability Cloud
Microsoft Sustainability Cloud is a big player in carbon accounting software. It's built to help businesses handle their ESG reporting, making sustainability data as easy to access as your financial reports.
Data Integration
This platform is great at gathering data from different sources. It's like a data vacuum for your organization. The star? Microsoft Fabric - a complete analytics platform that brings all your company data together, including those tricky ESG metrics.
But Fabric isn't just about collecting data. It's about making that data useful. With ready-to-use ESG data models and connectors, you're not starting from zero. It's like getting a pre-built model instead of a box of parts.
Emission Tracking
Microsoft Sustainability Cloud tracks all types of emissions:
- Scope 1 (direct emissions)
- Scope 2 (indirect emissions from energy use)
- Scope 3 (other indirect emissions)
From July 2023, they're upgrading their GHG emission calculations to include all 15 categories of Scope 3 emissions. That's a big step up.
They're also aligning their data models with the Pathfinder Framework from PACT. This means you can see exactly where your emissions are coming from.
Reporting Tools
Microsoft has created some handy tools to make sustainability reporting easier:
- ESG Report Builder: Comes with templates for major ESG frameworks.
- Copilot in Microsoft Sustainability Manager: An AI tool that helps write sustainability reports faster.
- Intelligent Insights: Uses AI to analyze your emissions data deeply.
Standards Support
The platform supports key sustainability standards:
- EU Corporate Sustainability Reporting Directive (CSRD)
- Carbon Disclosure Project (CDP)
- Global Reporting Initiative (GRI)
- Sustainability Accounting Standards Board (SASB)
But remember, it's not a magic solution. As Brandon Potter from Microsoft says:
"ESG disclosure reporting can be a complex and challenging process for companies. For example, there is no global standardization in ESG reporting, which makes it difficult to know what metrics to report and how to structure disclosures."
The tool is only as good as your data and the people using it.
Microsoft Sustainability Cloud is powerful, but it has its quirks. Some users find navigation tricky and want it to address broader sustainability issues. But for businesses already using Microsoft, it's a strong tool for bringing sustainability into focus.
3. Salesforce Net Zero Cloud
Salesforce Net Zero Cloud is a top player in carbon accounting software. It's built on Salesforce's AI-powered CRM platform and helps businesses tackle their environmental impact. Here's what makes it stand out:
Data Integration
Net Zero Cloud is like a vacuum for sustainability data. It uses MuleSoft to connect different data sources, creating a single hub for all your environmental metrics. The platform comes with pre-built data models and connectors for ESG data, giving you a head start on sustainability reporting.
Emission Tracking
Net Zero Cloud covers all emission types:
- Scope 1 (direct emissions)
- Scope 2 (indirect emissions from energy use)
- Scope 3 (other indirect emissions)
It digs deep into Scope 3, covering all 15 categories. This matters because Scope 3 often makes up the biggest chunk of a company's total greenhouse gas emissions.
The platform can track metrics from your entire value chain - suppliers, distributors, subsidiaries, portfolios, and franchisees. It's like having X-ray vision for your company's carbon footprint.
Reporting Tools
Net Zero Cloud makes sustainability reporting easier with these features:
1. CSRD Report Builder
This tool automates reporting for Corporate Sustainability Reporting Directive (CSRD) requirements. It's like having a sustainability reporting assistant that knows all the rules.
2. Einstein for Net Zero Cloud
Coming in Spring 2024, this AI tool aims to simplify ESG data reporting. Think of it as a 24/7 sustainability expert.
3. Materiality Assessment
This feature helps ESG managers identify key sustainability topics for their business using a customizable survey.
4. CRM Analytics Dashboards
These dashboards visualize your carbon footprint data. For example, the Climate Action Dashboard gives you a quick overview of your emissions by scope, region, and asset type.
Standards Support
Net Zero Cloud works with major sustainability standards:
- Corporate Sustainability Reporting Directive (CSRD)
- Sustainability Accounting Standards Board (SASB)
- Global Reporting Initiative (GRI)
- Carbon Disclosure Project (CDP)
This broad support means you're covered for various reporting standards.
Ari Alexander, VP and GM of Net Zero Cloud at Salesforce, says:
"Meaningful corporate transparency benefits us all, yet businesses can find themselves lost in the complex landscape of regulatory frameworks. Equipped with Einstein, Net Zero Cloud will help simplify the process of reporting ESG data, offering a valuable solution that any company can leverage toward achieving net zero."
Net Zero Cloud isn't just about checking boxes. It's about driving real change. Salesforce used the platform to cut its carbon accounting time from over six months to just six weeks.
While powerful, Net Zero Cloud currently holds a 0.66% market share in the Environmental Management category, ranking 19th according to 6sense's Market Share Ranking Index. This suggests room for growth as the platform evolves.
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4. Persefoni
Persefoni is shaking things up in carbon accounting software. Here's why it's turning heads:
Data Integration
Persefoni sucks up sustainability data from all corners of your company. It's built to handle big, messy enterprise data - no wonder Fortune 500 companies love it.
The platform comes with ready-made data models. That means less time fighting with Excel and more time actually cutting your carbon footprint.
Emission Tracking
Persefoni doesn't mess around when it comes to emissions:
- It covers Scope 1, 2, and 3 emissions
- It digs into all 15 categories of Scope 3 (that's the big one)
- It has a built-in watchdog for weird data patterns
Reporting Tools
Persefoni's reporting game is strong:
- PersefoniAI: It's like having a carbon expert on speed dial
- One-Click Regulatory Reporting: Coming soon to save you from compliance headaches
- Supplier Engagement Tools: Think of it as a CRM for your sustainability efforts
Standards Support
Persefoni's got your back on reporting standards. They're not just following the rules - they're helping write them.
"Carbon footprints are meant to be shared, and it should be easy and free. Whether you're sharing your footprint internally or with external suppliers, investors, regulators, or the public, the ultimate benefit is using more accurate and complete data to drive better decision-making." - Kentaro Kawamori, CEO and Co-founder of Persefoni
Persefoni's not just talk. They're a leader in the Forrester Wave™: Sustainability Management Software, Q2 2024 report. They aced categories like Audit & Compliance, Innovation, and Sustainability Intelligence.
But let's keep it real: Persefoni's not the biggest player out there. As of 2023, they've got a 1.03% market share in Environmental Management, ranking 11th by customer count. They've got 50 customers across 7 countries - more than Salesforce Net Zero Cloud's 32, but still a drop in the ocean.
If you're after a smart, AI-powered carbon accounting tool, Persefoni's worth a look. Just remember: garbage in, garbage out. The tool's only as good as your data and the people using it.
Strengths and Limitations
Let's dive into the pros and cons of the top carbon accounting software options:
Climatta
Climatta shines with its automated data collection and user-friendly interface. You can get up and running fast without any new hardware. But heads up: they're the new kid on the block, so there's not much of a track record yet. Oh, and good luck finding their prices online.
Microsoft Sustainability Cloud
If you're already knee-deep in Microsoft products, this one's a no-brainer. It plays nice with your existing setup and packs a punch with data analytics. Plus, you get AI-powered tools like Copilot to help write reports. The downside? Some users find it a bit tricky to navigate, and it's not great at tracking all those pesky Scope 3 emissions.
Salesforce Net Zero Cloud
Built on Salesforce's CRM platform, this tool tracks emissions across the board. They're even rolling out AI-powered reporting tools soon. But here's the catch: they've got a tiny market share (just 0.66%), and big companies might hit some scaling issues.
Persefoni
Persefoni's the big shot in enterprise-level carbon accounting. They're leading the pack according to Forrester Wave™. But if you're a small business, brace yourself for the price tag. And don't expect a huge user community - they only had 50 customers in 2023.
Here's a quick comparison:
| Software | Standout Feature | Main Drawback | Market Share |
|---|---|---|---|
| Climatta | Easy data collection | New player | Unknown |
| Microsoft Sustainability Cloud | Microsoft integration | Weak on Scope 3 | Not given |
| Salesforce Net Zero Cloud | CRM-based platform | Might not scale well | 0.66% |
| Persefoni | Enterprise-focused | Pricey for small biz | 1.03% |
The carbon accounting software world is still finding its feet. Take Salesforce - they used their own tool to slash their carbon accounting time from over six months to just six weeks. That's the kind of impact we're talking about.
Choosing the right tool? Think about what you need, what you can spend, and what tech you're already using. If Microsoft's your jam, their Sustainability Cloud might be perfect. Got complex reporting needs? Persefoni might be worth the splurge.
Just remember: these tools are only as good as the data you feed them and the people using them. As Kentaro Kawamori from Persefoni puts it:
"Carbon footprints are meant to be shared, and it should be easy and free. Whether you're sharing your footprint internally or with external suppliers, investors, regulators, or the public, the ultimate benefit is using more accurate and complete data to drive better decision-making."
Bottom line: the right carbon accounting software can supercharge your sustainability efforts. Just make sure you pick one that fits your company like a glove.
Summary and Recommendations
Picking the right carbon accounting software can make or break your environmental impact management. Here's what you need to know:
Key Takeaways
- Automated data collection is a must-have feature
- AI integration boosts reporting capabilities
- Look for software that covers all emission scopes
- Industry-specific solutions offer more relevant features
Recommendations by Business Type
Small to Medium Enterprises (SMEs):
Climatta is your go-to option. It's easy to use, doesn't need hardware, and sets up quickly. Perfect for carbon accounting newbies.
Large Enterprises:
Persefoni is the big player here. It's a Forrester Wave™ report leader and serves Fortune 500 companies. With a 1.03% market share in Environmental Management, it's gaining ground fast.
Microsoft-heavy organizations:
Microsoft Sustainability Cloud is a natural fit. It works smoothly with your Microsoft tools and gives you real-time analytics.
Salesforce users:
Salesforce Net Zero Cloud taps into your CRM data. But with only 0.66% market share, it's still catching up to other options.
Pricing Breakdown
Prices vary a lot:
- Climatta: Pricing not public, offers Basic and Pro plans
- Microsoft Sustainability Cloud: Starts at $4,000 per tenant
- Salesforce Net Zero Cloud: $48,000/year (Starter), $210,000/year (Growth)
- Persefoni: Enterprise-level pricing, likely pricey
Final Thoughts
Simon Fürstenberg from Cozero says:
"It's always a good idea to take an industry-specific solution."
Don't just focus on crunching emission numbers. Pick software that helps with decarbonization planning and management. Your tool should grow as your sustainability efforts do.
Keep an eye on newcomers like TheGreenShot. They offer AI-powered invoice management and custom tips to shrink your carbon footprint.
Choose smart, and you'll turn carbon accounting from a headache into a powerful growth tool.
FAQs
What is a carbon accounting software?
Carbon accounting software is a tool that helps businesses track and manage their greenhouse gas emissions. It's like bookkeeping for your company's environmental impact.
Here's the lowdown:
These tools crunch emissions data from various sources. They cover direct emissions (Scope 1), indirect emissions from energy use (Scope 2), and other indirect emissions (Scope 3).
Why use it? It saves time. Salesforce cut their carbon accounting time from over six months to just six weeks using their Net Zero Cloud.
Mike from Arbor explains:
"Carbon accounting software automates the data collection, processing, and reporting for GHG emissions."
But remember: the software is only as good as your data. Accuracy matters.
The market for these tools is growing fast. It's set to jump from $15.31 billion in 2023 to $64.39 billion by 2030. That's a 22.8% yearly growth rate.
When choosing software, consider your business size and industry. There's a tool out there for everyone, from small businesses to big corporations.
The goal? Turn those emissions numbers into real, positive change for the planet.
