If you missed our webinar, “The State of the Climate Industry Panel Discussion” on 10/3 with leading experts from Burlington, Forrester, and Persefoni, there’s no need to worry. We have you covered with five key takeaways from the discussion:
1. Most companies participating in our webinar have not set a net zero target
We polled webinar attendees on whether their company had developed a net zero goal; two-thirds have yet to do so, which is exactly what you would expect from companies that have not yet measured their emissions. Companies should measure the emissions they produce, discover their emissions hot spots, and form a decarbonization strategy, before making ambitious emissions reduction commitments.
2. Scope 3 is a sticking point, and it should be
In another webinar poll, attendees were asked whether their companies measure Scope 3 emissions. The results showed that only about a third do so today. Scope 3 emissions are regularly considered the hardest to calculate, collect data for, and mitigate. Companies should start with Scopes 1 and 2, but realize that measuring Scope 3 will be transformational for emissions reductions. Scope 3 is how we hold all of our value chain accountable and drive deep decarbonization. It doesn’t need to be hard. Companies can measure their Scope 3 emissions with relative ease by using spend-based data and industry averages and then, over time, getting more granularly into actual reported data. Companies can also start with the low-hanging fruit, such as business travel, which they already collect data on, using simple data to calculate these categories and build progressively into more categories with more accurate data types.
3. The climate industry is growing from 'nascent' to 'developed'
The amount of companies setting a Science-based climate reduction target has grown exponentially in recent years from just 62 in 2016 to well over 3000 now. This statistic shows the meteoric rise of companies understanding their climate-related risks and the growing climate industry for reducing them. The carbon accounting process is not a net new function for most companies, as most have been measuring emissions for some time, facilitated by spreadsheets. As panelist John Anthony Hodges, the Head of Sustainability at Burlington, stated: “It is fine to use spreadsheets to measure carbon emissions, but an auditor will likely find at least one mistake.” To ensure full audibility, the continual development and adoption of Climate Management and Accounting Platforms (CMAP) are essential. CMAP 2.0 marks another step in the carbon accounting software industry’s march from a nascent field to a mature one. The next five years are likely to be transformational for the climate industry as more companies address their climate risks, factor in market changes, and comply with new climate disclosure regulations.
4. Just start
As panelist John Anthony Hodges said: “Carbon accounting is a process, but just start.” Start easy with the data you already have for Scopes 1 and 2; start with the Scope 3 categories that are easiest to collect data for and build out your processes over time. Once you start your carbon accounting journey, you can then understand what an emissions reduction goal looks like for your company. The goal may not be net zero for all three Scopes outright, but it can be an iterative process of progressively more ambitious goals.
5. CMAP 2.0 is here
The webinar also introduced the next generation of Persefoni’s CMAP, “CMAP 2.0,” including a demo. CMAP 2.0 was the culmination of two and a half years of product design work, customer feedback, and expert consultation. CMAP 2.0 will reduce setup time and the technical barriers to adoption. It is intuitive and informative, allowing for a better user experience, and it will enhance our customers’ journey toward decarbonization. The demo conducted by Jordan Guess, Manager of Strategic Customer Success at Persefoni, walked us through the new first-time setup, which generally takes users only minutes and enables an easy onboarding experience. He went through how to set up and assign emissions-related tasks to people within the company and suppliers added to the platform. We were introduced to the modeling section of the platform, where users can model how reductions in emissions by Scope and facility will affect their overall emissions reductions. Users are also enabled to determine which Scope reductions will have the most significant effect and how decarbonization strategies can impact a company’s emissions profile. For example, the company might consider how facility emissions will be affected by switching to renewable energy.
Because of the webinar's time constraints, we could only show some of the many new functionalities CMAP 2.0 has to offer. If you’d like to learn more about CMAP 2.0, please read our product announcement blog highlighting all of the new features and functionalities or watch the entertaining webinar in full. Or, to see CMAP 2.0 in action, reach out for a demo.