t cht lk data analytics , carbon accounting tools automate the processing of data from suppliers , business activities and customer use . These tools not only gather data but also analyse and standardise it , making it easier to identify carbon hotspots , calculate total emissions and prepare audit-ready reports .
t cht lk data analytics , carbon accounting tools automate the processing of data from suppliers , business activities and customer use . These tools not only gather data but also analyse and standardise it , making it easier to identify carbon hotspots , calculate total emissions and prepare audit-ready reports .
Furthermore , a major benefit for technology and finance departments is the ability of these tools to address the data gaps that often hinder Scope 3 emissions tracking . By integrating with existing enterprise resource planning ( ERP ) and supply chain management systems , carbon accounting platforms can pull data from multiple sources , filling in the blanks where manual data collection methods fall short . This ensures a more complete and accurate picture of a company ’ s carbon footprint .
Scientific integrity
Carbon accounting relies on scientifically-based databases to translate business activities into greenhouse gas equivalents , ensuring that businesses use credible data when calculating their emissions .
to decarbonise could , on average , risk up to 20 % in economic profit for companies by 2030 , based on factors including stranded assets , increasing cost of capital , and loss of market share .”
Driving long-term sustainability
It ’ s critical that accurate carbon accounting is built on a foundation of scientific integrity . The accuracy of carbon reporting depends on reliable data sources , verified emissions factors and transparent methodologies . Carbon accounting relies on scientifically-based databases to translate business activities into greenhouse gas equivalents , ensuring that businesses use credible data when calculating their emissions .
This interconnected approach not only ensures more accurate data but also fosters collaboration . By sharing carbon data in real-time , businesses and suppliers can work together to identify reduction opportunities and foster more resilient supply chains . Climate action is a global incentive , and this collective action is critical as no business can tackle its entire value chain in isolation .
The ultimate goal of carbon accounting is to drive long-term sustainability . With continuous access to emissions data and actionable insights , businesses can set and track achievable carbon reduction targets .
In this rapidly evolving market , business leaders are at the forefront of the sustainability transformation , with the power to leverage technology to enhance carbon reporting and ensure regulatory compliance . With the right technology in place , businesses can not only meet ESG requirements like the CSRD but also turn carbon reporting into a strategic business advantage – driving both sustainability and growth in the process . p
Kristian Rönn , CEO and Co-founder , Normative
From compliance to strategic business value
Here is the exciting part . Carbon accounting is increasingly being used to bring benefits beyond compliance to the business . While regulatory compliance is a key driver for carbon accounting , it ’ s not the only benefit . The technology behind carbon accounting platforms offers businesses deeper insights into their operations , enabling them to turn emissions data into strategic opportunities .
With accurate data , businesses can identify carbon hotspots , optimise their operations and reduce costs . Moreover , by modelling different emissions scenarios , businesses can avoid future financial risks related to carbon taxes , while also finding efficiency gains and cost savings . As McKinsey stated : “ Failure
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