Carbon accounting can be a daunting task, especially when it comes to Scope 2 and Scope 3 emissions. Sustainability accounting software solves the challenge of accurately tracking, managing, and reducing an organization’s environmental impact, particularly carbon emissions and resource consumption. It simplifies compliance with complex sustainability regulations, reduces inefficiencies, identifies cost-saving opportunities, and supports businesses in achieving their climate goals. By providing actionable insights, these tools tackle the problem of transparency and accountability in corporate environmental practices.
Sustainability accounting software is designed to help organizations measure, manage, and report their environmental impact, particularly carbon emissions and resource usage. These tools aid in tracking compliance with sustainability regulations, identifying ways to reduce emissions, and strategizing for long-term environmental goals. By leveraging data analytics and reporting features, these platforms empower businesses to operate more sustainably while aligning with global climate initiatives.
In Switzerland, industries with a high concentration of SMEs benefiting from sustainability accounting software include:
- Manufacturing: SMEs in this sector can use these tools to track emissions, optimize resource usage, and comply with environmental regulations.
- Retail and E-commerce: These businesses can monitor their supply chain sustainability and reduce their carbon footprint.
- Agriculture and Food Production: Sustainability software helps track water usage, emissions, and sustainable sourcing practices.
- Construction and Real Estate: SMEs can measure energy efficiency, waste management, and sustainable building practices.
- Tourism and Hospitality: These tools assist in reducing energy consumption, managing waste, and promoting eco-friendly practices.
- Technology and IT Services: SMEs in this sector can use these platforms to align with green IT practices and reduce energy consumption in data centers.
Overview
In Part 1, we examine the suitability of seven well established carbon accounting platforms for SME. First we start with a general overview over these platforms:
1. Sweep
Sweep is a sustainability data management platform that helps businesses track and act on their ESG (Environmental, Social, and Governance) and carbon emissions. While it’s more comprehensive, Sweep can be tailored to smaller businesses that want to centralize their ESG and carbon data. The platform aggregates and centralizes environmental data, offering tailored insights for SMEs that working for example, on smaller-scale construction or renovation projects. On the down side, the initial setup process might be complex for less tech-savvy teams.
Pros
- Centralizes ESG and carbon data across an organization.
- Supports compliance with multiple regulatory frameworks.
- Provides insights for sustainability strategy and risk management.
Cons
- – Can be complex to set up for smaller businesses.
- – Pricing details are not publicly available, requiring direct vendor contact
Links
https://www.erp-information.com/sweep
2. Watershed
Watershed is a carbon accounting platform designed to help businesses measure, report, and reduce their emissions.
Pros
- Covers Scope 1, 2, and 3 emissions.
- Provides real-time dashboards for tracking emissions.
- Offers hands-on support for climate strategy.
Cons
- – Pricing is not transparent and requires vendor contact.
- – Some users find the interface complex
Links
https://www.erp-information.com/watershed
https://crm.org/news/best-carbon-accounting-software
3. Microsoft Sustainability Cloud
Microsoft’s sustainability platform helps businesses track their environmental footprint and integrate sustainability into operations. It provides a robust tools to monitor energy efficiency and track sustainability metrics making ideal for green building projects. Its AI-powered insights help optimize operations. High costs could pose a challenge for smaller businesses. Comprehensive tools for tracking energy use in data centers and implementing green IT practices are included in the package. Its robust integration capabilities make it suitable for IT SMEs while its high subscription costs might limit accessibility for other small businesses.
Pros
- Strong data integration and reporting capabilities.
- Supports compliance with sustainability regulations.
- Offers AI-powered insights for sustainability management.
Cons
- Expensive for some SME ($4,000 per tenant per month).
- Some users find the interface complex and difficult to learn
Links
https://www.microsoft.com/en-us/sustainability/learning-center/sustainability-reporting-standards
https://www.erp-information.com/microsoft-cloud-for-sustainability
4. IBM Environmental Intelligence Suite
IBM’s platform provides AI-powered environmental insights for businesses to manage climate risks and sustainability efforts. It provides advanced analytics and data visualization tools to manage environmental risks in IT operations. For other SMEs the setup and configuration might require technical expertise, which could be a challenge for smaller teams.
Pros
- Advanced analytics for climate risk assessment.
- Strong data visualization and reporting tools.
- Helps businesses proactively manage environmental disruptions.
Cons
- Expensive pricing structure.
- Some users find it complex to use and set up.
Links
https://www.g2.com/products/ibm-environmental-intelligence-suite/reviews
5. Persefoni
Persefoni is a carbon accounting platform that helps businesses and financial institutions track their greenhouse gas emissions. It provides a centralized platform for carbon accounting and compliance, which can be scaled to fit the needs of SMEs.
It tracks emissions across the supply chain, ensuring transparency in sourcing and water usage. It can handle Scope 1, 2, and 3 emissions effectively, making it suitable for agricultural SMEs. However, it may have a steep learning curve for users new to carbon accounting tools.
Pros
- Provides a single source of carbon truth across an organization.
- Supports compliance with climate disclosure regulations.
- Offers advanced analytics for emissions tracking.
Cons
- Some users report occasional software bugs.
- The interface can be complex for new users
Links
https://www.erp-information.com/persefoni
6. Normative
Normative is a sustainability reporting tool that helps businesses track their environmental impact and comply with ESG regulations. It also offers automated sustainability reporting and aligns with global ESG standards, making it a good choice for SMEs aiming to comply with regulations efficiently.
The sotware automates sustainability reporting and ensures alignment with industry standards, helping businesses in this sector meet their ESG goals efficiently. However, there is limited customization for tourism-specific metrics.
Pros
- Provides automated sustainability reporting.
- Helps businesses align with global ESG standards.
- Offers insights for emissions reduction strategies.
Cons
- Limited customization options.
- Some users find reporting features inadequate.
7. Greenly
Greenly is a carbon footprint tracking platform that helps businesses measure, reduce, and offset their emissions. Known for its user-friendly interface and automated data collection, Greenly is particularly accessible for SMEs looking to track their carbon footprint without extensive resources.
The software simplifies sustainability tracking and offers user-friendly analytics for emissions reduction. It is Ideal for farmers and food producers with limited technical expertise. It’s user friendliness makes it also perfect for tracking energy consumption and waste management in hotels and other tourism-related businesses.
Generally, its intuitive interface is a big plus for smaller operations. On the down side, the advanced customization that is necessary to set it up might limited to some specific needs. Reporting capabilities might not meet the needs of large-scale projects.
Pros
- User-friendly interface with automated data collection.
- Provides detailed analytics for emissions reduction.
- Supports compliance with sustainability regulations.
Cons
- – Pricing can be challenging for startups and small businesses.
- – Some users report occasional formatting issues in reports.
Industries benefiting from carbon accounting software
Let’s dive into industries with predominantly SME activity and explore the tools that could be most beneficial:
1. Manufacturing
- Suitable Tools: Normative and Sweep.
- Why? Manufacturing SMEs can benefit from tracking their carbon emissions and optimizing resource usage. Normative helps with automated ESG reporting, while Sweep centralizes environmental data and provides actionable insights.
2. Retail and E-commerce
- Suitable Tools: Greenly and Watershed.
- Why? These platforms are effective for monitoring supply chain sustainability and tracking emissions from logistics. Greenly is particularly user-friendly, which is ideal for smaller retailers.
3. Agriculture and Food Production
- Suitable Tools: Persefoni and Greenly.
- Why? These tools can help farmers and food producers track water usage, emissions, and the impact of their sourcing practices. Greenly’s detailed analytics and ease of use are a great fit here.
4. Construction and Real Estate
- Suitable Tools: Microsoft Sustainability Cloud and Sweep.
- Why? These platforms assist in tracking energy efficiency, waste management, and sustainable building materials. Microsoft Sustainability Cloud offers robust reporting, while Sweep can scale down for smaller projects.
5. Tourism and Hospitality
- Suitable Tools: Greenly and Normative.
- Why? Greenly aids in reducing energy consumption and managing waste, while Normative helps these businesses meet ESG reporting requirements with ease.
6. Technology and IT Services
- Suitable Tools: Microsoft Sustainability Cloud and IBM Environmental Intelligence Suite.
- Why? These tools help SMEs in tech adopt green IT practices, monitor data center energy consumption, and ensure compliance with sustainability regulations.
Conclusion
These platforms are designed to simplify sustainability tracking and reporting, making them ideal for SMEs with limited budgets and resources. While some tools such as the IBM and Microsoft platforms offer comprehensive methods to tackle carbon accounting, they be to difficult to set up SME not active in the IT sector. Other platforms such as Greenly, Normative, Sweep and Persefoni are well suited for quick access to carbon accounting, although some users may face a steep learning curve.
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