Regulation Inspires Innovation for Corporate Carbon Accounting Software

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By Kim Johnson | 2Q 2022 | IN-6527

 

Requirements for Climate Disclosures Driving Increased Carbon Accounting Investment

NEWS


Accounting software is not typically associated with reporting on hot tech innovation. However, increased global regulations for climate disclosures are undoubtedly clearing the way for new climate tech companies, especially in climate-related Software-as-a-Service (SaaS). Companies need to track and calculate their carbon emissions footprints in a way that is compliant with the Greenhouse Gas Protocol and other carbon accounting methodologies, and these are swiftly evolving from voluntary to compulsory disclosures. While governments are influencing legislation to address climate change, investors are driving demand for climate disclosures. Shareholders of public companies want to know about the risks of climate change to their investments (e.g., risk to buildings, coastal properties, agricultural losses, etc.) and how not doing enough to respond to environmental and social issues could affect the future of the company (e.g., reputational risk). With current voluntary disclosures, climate risks and carbon emissions data are inconsisten…

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