With consumer preferences quickly becoming consumer requirements, and with increasing government regulation, accurate carbon footprint measurement has begun to transcend concerns of reputation and compliance – it’s quickly becoming a matter of commercial viability. As climate change awareness continues to grow, industries of all types are facing increased pressure to reduce greenhouse gas emissions, land-use intensity, and water consumption.
In this post, we will discuss the environmental and economic benefits of accuracy in emissions measurement, focusing on product-level accounting. We will draw parallels with the healthcare and financial sectors, illustrating the value of precise data in decision-making, and why adopting product-level accounting is the future of sustainable business. We will also propose certain core requirements we feel are integral for solutions tackling emissions measurement, and how businesses can act today in the pursuit of emissions reduction.
The Importance of Accuracy
In many of our partner conversations, one theme comes up time after time. Getting accurate data can be difficult, and even when you have accurate data, making it useful is challenging. At the same time, measurement accuracy is essential for driving action, particularly when pursuing ambitious net zero targets. To illustrate, let us consider two industries where accuracy is crucial for business activities: healthcare and finance.
Healthcare: In medicine, accurate diagnosis is the bedrock foundation for effective treatment. An accurate, precise diagnosis enables healthcare professionals to develop targeted therapies, leading to better patient outcomes.
Finance: Auditors give their opinions on financial data, compiled according to accepted rules and practices. Investors won’t look twice at a company that is unwilling to share financials transparently, and rightfully so. Precision and materiality count, and can determine the very viability of the firm.
Today, vague corporate financials and poor diagnostic capabilities are considered unacceptable. We are starting to see that same sea change in carbon accounting. There is a growing awareness of, and push for, the most accurate and timely data possible so that businesses can drive effective action.
PCFs – Looking Forward & Finding Value
The same principles that drive patient outcomes and underly actionable financial reports apply to the future of carbon management; accuracy enables action. Key benefits of accurate carbon measurement include:
What Should We Expect from Carbon Footprint Software?
For even the most sustainability-conscious firms, there are several tricky challenges preventing rapid progress on the data front.
Whether it’s a case of driving towards Science Based Targets (see SBTi), or communicating environmental progress to stakeholders, there’s a lot more that software can be doing to make corporate sustainability actions more effective. We believe that the path to a carbon neutral world by 2050 involves dramatic improvements in accuracy, and are working hard towards that end.
For a look at some of our new partner-driven features, have a look at this recent update from our product team.