Key Insights From Carbon Management Software Customers

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Key Insights From Carbon Management Software Customers

As part of the recently released 2022 Verdantix Green Quadrant: Enterprise Carbon Management Software, Verdantix interviewed more than 20 carbon management software customers to gain insights into their experiences selecting and using carbon management software.  The customers interviewed worked in a range of industries, including consumer goods, retail, pharmaceuticals, tourism, manufacturing, transportation, and technology. What were some of the key takeaways from these discussions?

Corporates need to plan ahead. The majority of customers interviewed indicated that carbon management software implementation takes (or is expected to take) on average six months, although some customers reported implemented time as little as six weeks and others as long as one year.  As corporates look to comply with mandatory TCFD-based reporting requirements, they need to factor implementation time into their schedules and may look to prioritize vendors with a track record of providing customized and/or user-friendly implementation services.  

ESG and sustainability roles tend to be the primary initial users of carbon management software, although this is evolving. Over half of the customers Verdantix spoke with were situated within their firms’ ESG and/or sustainability groups; the remaining customers interviewed were in EHS, operations, procurement, social impact, digital solutions, and financial groups.  Regardless of the interviewee’s function, the majority indicated that they plan to expand the number of users of carbon management software to include a wider variety of functional areas.    

The market is still in its early stages of development, and most corporates’ current priorities center around calculating their carbon footprint. Of the corporates interviewed, over one-third were in the process of implementing software, showing that the market is still in its early stages.  Most indicated that they are currently using carbon management software for data management and Scope 1 and 2 emissions calculations; all 15 vendors included in the Green Quadrant are well positioned to meet these needs.  More ambitious customers are currently incorporating (or are planning to incorporate) other features offered by the software vendors, including Scope 3 emissions calculations, management of carbon offsets, energy management and disclosure reporting.  

Key factors in the software selection process include past relationships, sector experience and a “gut feeling”. Approximately one-quarter of customers interviewed indicated that they did not go through a formal vendor selection process and instead chose a vendor that they had previously worked with.  Of the remaining customers, several indicated they took past sector experience of different vendors into account.  While all of the vendors included in the Green Quadrant have demonstrated success across a variety of industries, vendors often show particular strengths in certain industry segments. Additionally, several customers identified multiple vendors who could meet their needs but ultimately chose their current software vendor based on a “gut feeling”, which incorporated some intangible qualities such as ease of use, customer interface, and customer service.

To learn more about the 15 most prominent carbon management software vendors and our take on the market, read the full report: 2022 Verdantix Green Quadrant: Enterprise Carbon Management Software 

Jessica Pransky

Principal Analyst

Jessica is a Principal Analyst in the Verdantix ESG and Sustainability practice, which she joined in 2022. Prior to joining Verdantix, Jessica worked in consulting, focusing on ESG risk and opportunity identification, as well as EHS due diligence. Her current agenda covers ESG solutions for investors, ESG software, and risk in ESG and sustainability.