In today's era of energy transition and increasingly stringent environmental regulations, numerous businesses are turning to carbon management platforms to make better decisions to ensure compliance. These platforms are designed to tackle challenges related to identifying and collecting relevant data in a centralized location and reporting on it in a compliant manner.
However, carbon management platforms do not have to be solely a compliance tool. Instead, they have the potential to generate new value for organizations as a tool to empower executives to make decisions that promote efficiency, collaboration and integration. So, how can future carbon management platforms become a powerful decision-making partner?
Carbon management platforms currently ensure compliance, not value
Businesses face accelerating pressure to minimize their CO2 emissions as the world races toward net zero. Initiatives in the United States have aimed to cut carbon emissions by 65 percent by 2030, while the European Union has its sights set on a carbon-neutral future by 2050.
To keep pace with these goals, businesses rely on carbon management platforms. These platforms measure and forecast emissions, and businesses use this data to gain insights into how well they are complying with regulations and decarbonization goals.
While these platforms are crucial for compliance, they have the potential to offer more value to businesses. Carbon management platforms are most effective when they are paired with an effective strategy, particularly one focused on efficiency and value creation. Indeed, decarbonization is as much about sustainability as it is about prioritizing efficiency in operations. According to the World Business Council for Sustainable Development, companies should “treat carbon like money”: Every ounce of lost carbon translates to lost dollars.
Carbon management platforms can thus play a crucial role in business operations that go beyond simple compliance reporting: They can offer insights that enable executive decision-making.
End-to-end emission management is a crucial aspect of strategic decision-making
As a decision-making tool for executive management, carbon management platforms have the potential to help future-proof businesses and create value. This can be achieved by providing end-to-end services and features that encompass the entire journey to net zero, including analysis and planning, avoidance and reduction, and offsetting.
The "avoid and reduce" aspect presents specific challenges, which can vary depending on the industry: