Three Key Considerations For Carbon Management Software Buyers

Three Key Considerations For Carbon Management Software Buyers

The landscape of carbon management software providers is evolving as buyers’ needs shift towards regulatory compliance, supply chain emissions and net zero portfolio management. Over the last year, carbon management software vendors such as EcoOnline, IBM, Sweep and Watershed have developed and launched CSRD-aligned reporting modules to meet client and buyer demand. Emitwise, Optera and Terrascope, among others, have built specialized capabilities to support organizations in solving common challenges regarding emissions visibility and reduction management across the supply chain. The recently published Verdantix Buyer’s Guide: Carbon Management Software (2024) provides an essential resource for sustainability and net zero executives responsible for selecting a carbon management software, including an analysis of 88 providers in this space and in-depth profiles of 16.

When selecting carbon management software, decision-makers should consider several factors to ensure they choose a solution that best fits their organizational needs:

1. Functionality in line with reporting requirements and decarbonization strategy maturity.
   As the mandatory and voluntary sustainability reporting landscape becomes more complex, firms will need a software partner to support with collecting, managing and reporting carbon data in line with relevant regulations, such as CSRD. With increasing calls for transparent, traceable data, this software will also need to ensure the auditability of disclosures. The 2024 Verdantix global corporate survey found that, in the next two years, firms will prioritize carbon management software capabilities around net zero project portfolio management, target-setting, pathways and forecasting. At the same time, organizations are experiencing major challenges in collecting and calculating supplier emissions data. Buyers should consider providers that offer capabilities in these areas to respond to short-term needs, as well as to future-proof their decarbonization strategies.
   
   
2. Industry-specific experience and geographical presence.

   Relevant industry expertise is a top priority for buyers of carbon management software. It typically translates into industry-specific decarbonization functionality, as well as the ability to align carbon collection and reporting to industry-relevant legislation (such as the Carbon Border Adjustment Mechanism (CBAM)), frameworks (like the Partnership For Carbon Accounting Financials (PCAF)) and initiatives (for example, SBTi Food, Land and Agriculture (FLAG) guidance). Firms should also consider vendors’ global geographical presence, and how that might impact implementation, training and customer service.

3. Integration with existing software and systems.
   Carbon management software buyers should consider the required IT systems integration early in the vendor selection process. Many providers now offer direct integrations or open APIs to facilitate software implementation and data flow with common data collection systems, such as enterprise resource planning (ERP), supply chain management and procurement, HR, customer relationship management (CRM) and ESG reporting solutions.

For a deeper dive into how to navigate the carbon management software market, read Verdantix Buyer’s Guide: Carbon Management Software (2024).