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?
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.
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:
In general, avoiding and reducing emissions can involve implementing relatively simple measures to decrease emissions. For energy-intensive companies, this area can pose more complex challenges, as concrete emission reduction actions may be harder to implement. These companies may need to assess their production facilities and upgrade existing technology to more efficient alternatives. This can be particularly challenging for carbon-intensive industries, as new technologies that do not yet exist or are not yet widely available may be required. Carbon management platforms are ideally suited to address these challenges and assist companies in reducing their emissions. However, current carbon management platforms offer limited services in this area.
Over the past year, most platforms have rapidly evolved and introduced innovative features in the following areas:
Companies invest in climate-positive projects via voluntary carbon offsetting market to supplement emission reduction efforts. Despite vetting through international benchmarks like the Gold Standard, companies must be cautious of reputation risks such as greenwashing.
Though these features are excellent starting points, the actual execution of the strategy surrounding "avoiding and reducing" emissions currently lacks a central location where a company can analyze and plan, reduce and avoid, and offset emissions from one end to another. Consequently, emission management platforms will need to evolve in order to generate maximum value for companies.
Given the lack of an end-to-end view in current carbon management platforms, they are missing an opportunity to generate additional value for companies. The emission reduction and avoidance space is particularly challenging for companies to maneuver. To help companies overcome barriers and navigate this space more effectively, a broader range of features is necessary. These features should bring a clear value to companies with the goal of emission reduction and illustrate the direction that carbon management platforms need to take in the future. Some exemplary features include the following:
Incorporating indicative features into carbon management platforms can expedite net zero decisions for companies. An end-to-end view—which includes analysis and planning, reduction and avoidance and offsetting—helps companies understand and agree on decisions—and potentially future-proof their business.
What does an end-to-end emission journey look like? It enables a holistic communication ecosystem once all emission efforts are in place—and it all begins with a strategy:
By taking a holistic approach to carbon management across steps like analyzing and planning, reduction and avoidance, and offsetting, businesses can achieve their net zero goals while maximizing value. As a digital transformation partner, Publicis Sapient helps businesses navigate their net-zero journey one step at a time. Reach out to learn how Publicis Sapient can help strategize to enhance executive decision-making.
Senior Manager Customer Experience & Innovation Consulting
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Senior Client Partner Energy & Commodities
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