Carbon accounting is the process of measuring, reporting, and managing the carbon emissions and carbon footprint of an organization or individual.
Carbon accounting is a set of practices used to measure an organization’s CO2 emissions and help achieve carbon emissions goals. Many organizations use carbon accounting to increase brand loyalty (23% of consumers are willing to switch to brands that share their environmental stance).
However, interest in carbon accounting is growing mainly because a number of startups are launching carbon accounting software.
(Searches for “carbon accounting software” have increased 900% over the last 24 months.)
Persefoni, Greenly and Net0 are examples of trending carbon accounting software startups.
Carbon accounting is part of the ESG Software meta trend.
ESG software analyzes several KPIs to provide detailed reports on whether a company’s operations are meeting their ESG goals.
Due to shifting consumer and investor preferences, companies are starting to closely track their social and environmental impact.
For instance, around 83% of consumers pay attention to a company’s ESG practices.
And McKinsey estimates that investors are willing to pay a 10% premium to buy a company with a positive ESG history.
Which is why demand for ESG software is growing (searches for “ESG software” have grown by 550% in the last five years).