At a glance
- Carbon accounting software can keep accountants ahead of sustainability regulations while adding client value.
- There are a range of tools on the market to simplify emissions tracking and ensure compliance.
- Data integrity is essential for meaningful reporting.
Sustainability reporting is shifting fast. While UK regulations such as the Streamlined Energy and Carbon Reporting (SECR) and the FCA’s Task Force on Climate-related Financial Disclosures (TCFD) currently put pressure on large organisations to disclose their carbon footprint and climate risks, smaller firms will likely face similar demands as transparency expectations grow.
With the Prime Minister recently announcing a new target for the UK to cut emissions by 81 per cent by 2035, and NHS suppliers now having to provide a carbon reduction plan, the trend is clear.
By adopting carbon accounting practices now, accountants can get ahead of upcoming legislation while adding extra value for clients facing similar pressures. As businesses look to frameworks like the EU’s Corporate Sustainability Reporting Directive and the Global Reporting Initiative, the potential impact on their bottom line will be a critical factor.
What is carbon accounting software?
Sustainability consultant Rodica Murphy likens carbon accounting platforms – software that helps businesses track and manage carbon emissions – to a sustainability Swiss army knife.
“They monitor emissions from energy use, business travel and supply chain activities,” she says. “By using protocols such as the GHG Protocol, these platforms ensure the carbon footprint meets global standards. This becomes essential with strict sustainability regulations in the EU and UK.”
“They monitor emissions from energy use, business travel and supply chain activities,” she says. “By using protocols such as the GHG Protocol, these platforms ensure the carbon footprint meets global standards. This becomes essential with strict sustainability regulations in the EU and UK.”
By tracking a broad range of ESG metrics, you can get a comprehensive view of your carbon footprint and your client’s environmental impact. These include emissions from company-owned sources (scope 1), those from purchased electricity (scope 2) and those generated by suppliers and product usage (scope 3).
Alyssa Zucker, Senior Industry Principal, Carbon at Workiva, says the software helps larger companies report to stakeholders with confidence.
“Choosing a solution with built-in governance and controls will provide businesses with the transparency and accuracy needed to ensure carbon reporting is audit-ready,” she says.
“This enables businesses to show their accountability to auditors, investors, regulators, the board, and other stakeholders with the knowledge that their carbon reporting is completely accurate.”
Five top carbon accounting platforms
Though carbon accounting is a relatively new field, the market is competitive, making it tough to find the best fit. Here’s a list of five carbon accounting platforms worth considering.
Greenly
Perfect for EU or UK-based small businesses, Greenly offers user-friendly features and tailored carbon reduction methods, making emissions tracking accessible without overwhelming resources.
Normative
Normative focuses on data-driven insights, backed by artificial intelligence (AI) predictive technology, and providing cost-effective emission reduction recommendations. Best for businesses with robust data infrastructure.
Plan A
Designed for larger global businesses, Plan A supports EU/UK compliance and provides tools for detailed decarbonisation planning; it’s ideal for complex reporting needs.
Futureproof
Known for intuitive dashboards and scenario planning, Futureproof helps clients map out and monitor progress towards net zero targets with ease.
Axiom
This AI-powered platform automates carbon reporting processes and analyses multiple information types instantly, at scale, to support compliance across various reporting standards.
Cogo
Tailored for small businesses, Cogo provides straightforward emissions tracking and actionable insights.
Providing value to clients
Carbon accounting software helps you demonstrate your commitment to sustainability while expanding your role by advising clients on compliance and futureproofing their business. This could include:
- Providing strategic client advice, highlighting where they can save on energy costs or develop eco-friendly offerings that attract new customers.
- Offering audit-ready, standardised data to help clients navigate compliance smoothly and reduce the risk of fines.
- Using detailed emissions data to guide clients towards net zero goals within their financial strategies.
Murphy warns that while these tools can be transformative for accountants by consolidating data, reducing manual errors and providing reliable metrics, success depends on the quality of data input and commitment.
“Many platforms are affordable, catering to small and medium-sized businesses (SME) aiming to go green without excessive costs,” she says, “They save time on data tasks, allowing a focus on strategic planning. Yet, even the most advanced software needs engaged users to realise its full benefits.”
The IFA Saudi Arabia webinar on sustainability reporting will be held on 21 December, with more information HERE.
