A lot of businesses and communities have set ambitious targets for reducing carbon emissions. But without good data, it will be hard to know if their actions make a difference. They’ll need help determining what to measure, gathering data, analyzing the data and then reporting it in useful ways to drive corporate decision-making.
CleanTechnica posts a review of the market for Corporate Carbon Accountability management tools.
- More of a vitamin than painkiller (for now). Without a clear mandate for climate financial disclosure in place (in the US), corporates don’t have a hard incentive to adopt stringent climate reporting – much less invest in software. However, forward looking organizations who understand the material benefits (e.g., reducing supply chain risk, reducing energy costs) and lean in to the media and employee recruiting rewards will adopt these tools early, just in time for public policy to (hopefully) follow suit.
- Differentiate or die trying. The first two steps of the value chain are already crowded with a mix of incumbents (including software giants like Salesforce and SAP who have announced similar carbon measuring tools) and startups. Disrupters’ challenge will be to differentiate through 1) offering the full scope of capabilities (Emitwise aligns with multiple reporting frameworks) 2) targeting a specific customer profile (Sinai focuses on complex industrial heavy emitters like ArcelorMittal) or by 3) offering management and sourcing solutions down the value stack (Watershed helps corporates create marketplaces).
- Land and expand the TAM in management and offsetting. Measurement and reporting will ultimately be a race to the bottom (once metrics standardize, it’s a fight on price for quality). However, the land of carbon accounting management and offsetting remains untouched and ripe. Hypothetically, a startup could own the entire climate opportunity of corporates seeking to mitigate their emissions, from sourcing sustainably through to purchasing offsets. In climate innovation, the TAM is boundless.
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Full Article Here: Carbon Accounting Market