INTHEBLACK October/November 2024 - Magazine - Page 56
WORK SMART
TECH STACK
Carbon
counters
Carbon accounting software can help
organisations to measure and manage
their environmental impact, which is vital
amid the global push towards net zero.
Words Adam Turner
AS THE WORLD CHASES NET ZERO CARBON EMISSIONS
by 2050, many organisations are working to decarbonise
as part of their sustainability efforts. At the same time,
regulators are starting to demand that organisations disclose
their environmental impacts, such as the EU's Corporate
Sustainability Reporting Directive (CSRD).
Meanwhile, the Australian Government has begun to
phase in mandated climate-related financial disclosures
for large entities, including their greenhouse gas emissions.
Other Asia-Pacific markets, such as Singapore, have plans
to mandate.
Carbon accounting software is designed to help
organisations measure, track and manage their emissions
of carbon and other greenhouse gases such as methane
and nitrous oxide.
The tracking of emissions is divided into several main
sections for reporting purposes:
• Scope 1 direct emissions are generated by an organisation
operating assets it owns or controls, such as industrial
machinery and vehicle fleets.
• Scope 2 indirect emissions are generated by the
production of the energy an organisation consumes.
Although these emissions physically occur at the facility
where the energy is generated, such as a coal-fired power
station, they are counted as indirect emissions because
they are a result of the organisation’s energy usage.
• Scope 3 emissions are composed of all other indirect
emissions that occur in an organisation's value
chain, including upstream emissions generated by
suppliers making products the company uses and
56 INTHEBLACK October/November 2024
downstream emissions generated by customers using
the organisation's products.
• Scope 4 avoided emissions is where organisations voluntarily
track avoided emissions, thanks to more energy efficient or
environmentally friendly products and business practices
Carbon accounting software gathers data from various
business systems and external sources, then uses the
Greenhouse Gas Protocol (GHG) standardised framework
to measure and report emissions.
Activity-based data generally allows for more accurate
emissions estimates than spend-based data, but
activity-based data is typically more difficult to gather.
The hybrid model methodology, recommended by the
GHG, is a pragmatic approach that draws on as much
activity-based data as possible, then uses spend-based
methods to estimate the rest.
Some carbon accounting software also connects to
carbon offset marketplaces. This allows organisations
to find and purchase carbon offsets to assist with
reaching their net zero goals.
Here are five of the top options for carbon
accounting software.
