Over a third of the world’s largest publicly traded companies now have net-zero targets to radically reduce their greenhouse gas emissions by 2050 or earlier. But, 65% of corporate targets do not yet meet minimum procedural reporting standards. This is indicative of a data issue that has more far-reaching consequences than annual reporting requirements. As has been drummed into us, we cannot manage what we do not measure and the stark consequences of not addressing human-caused climate change have been clearly set out in the 2023 IPCC AR6 report.

Carbon accounting is still undertaken manually or using semi-automated tools that rely on estimates or averages. Additionally, many more organizations still need to set targets. To move forward, they must first ascertain current emissions levels. But with supply chain emissions representing a much higher proportion than direct emissions, this is proving challenging for four key reasons: a lack of data, poor or unreliable data, a skills gap preventing effective data analysis, and issues exchanging data.

Organizations must account for carbon, not only for climate and compliance reasons but to aid decision-making, reveal opportunities for efficiencies and growth, and differentiate their business. As a result, organizations across industries are racing to slash the carbon footprint of their products and services. As businesses at every level of the value chain ramp up their own decarbonization efforts, business leaders know the lowest carbon offerings are likely to become the most desirable and hence the best opportunity for growth and profit.