Carbon accounting is a rapidly evolving space within enterprises. Over 900 companies from the Forbes 2000 list have established net-zero targets, encompassing an annual revenue of over $26 trillion today. While significant advancements have been made in corporate target setting over the past few years, most companies are yet to make significant progress in their decarbonisation journey according to the UN Race to Zero campaign report. Additionally, only a few companies are addressing Scope 3 emissions, which are indirect upstream and downstream emissions accounting for over 75% of overall emissions, according to the World Resources Institute (WRI).
Data silos are some of the key reasons for the slow pace of emission measurement in large enterprises. Accessing data for calculations of GHG emissions is a challenge since data is stored and managed in isolated systems. This often leads to information being inaccessible and difficult to amalgamate effectively. In the context of carbon accounting, these silos can manifest as segregated databases, disconnected software applications eg: ERP, CRM, HCM apps, and distinct teams managing disparate data points. This fragmentation not only complicates the process of collecting and analysing carbon-related data, but also obstructs the creation of a comprehensive view and accuracy of an organisation's carbon emissions. This challenge can be overcome by having the right data integration strategy.
Carbon accounting needs the seamless integration of data from various sources such as energy consumption, transportation, supply chain, purchased goods, and services data. Data integration helps with this process of combining data from disparate sources into a unified and coherent structure. It entails bringing together data from various departments, such as manufacturing, supply chain, energy management, and more.
Once successfully accomplished, it becomes the foundational pillar for organisations to gain a comprehensive understanding of how different aspects of their operations contribute to their carbon footprint, leading to the following key benefits -
While the benefits are evident, data integration for carbon accounting comes with its own challenges:
Overcoming these challenges requires a strategic approach that involves collaboration across departments, clear communication, robust data governance policies, and the use of appropriate technologies.
While data integration in carbon accounting is not without its challenges, Terrascope, a CDP Gold accredited end-to-end decarbonisation platform, helps break down silos and provides data integration capabilities that serve as a bridge, connecting various organisational aspects and offering an accurate view of emissions sources and interdependencies. This, in turn, will empower companies to set targets and achieve tangible emissions reduction, getting them started on their decarbonisation journey.
Amit Dhamane
Lead Solutions Engineer, Terrascope