Companies the world over are searching for ways to lower their carbon emissions. Larger companies have publicly set ambitious aims to reach net-zero, while others are simply looking for ways to make their operations greener. Whatever the goalpost, decarbonization requires careful planning. Every business is unique, as is every carbon management strategy. Carbon management software is emerging as a sought-after solution for companies navigating their journey to sustainability.
As a result, the carbon management software market is poised for sustained growth. BCC Research has estimated that the industry will reach heights of $21.4 billion by the end of 2027, with projected growth falling at a CAGR of 12.4% between 2022-2027.
With climate change approaching crisis point, it's clear that decarbonization strategies cannot wait. A go-slow approach might have made sense a decade ago, but today, as the transition of the world economy to a low-carbon foundation accelerates, that strategy is risky. Leaders must focus on setting appropriate but ambitious reduction targets, providing robust and assured climate data, and adjusting their businesses to a more sustainable footing. This must be a critical focus going forward.
It’s an urgent situation, but fortunately, plenty of businesses are taking the steps to reduce emissions. Tesla has begun tracking electricity and natural gas usage for their sites and is planning to build out its global carbon emissions data in the future. Ernst & Young announced that it has reduced GHG emissions and is carbon negative for the second year.
In 2021, Mitsubishi Electric said it had achieved a 36% reduction in CO2 emissions from FY2001, and about a 56% reduction from FY1991 level. By 2050, Mitsubishi Electric aims to reach net-zero total emissions.
Shell is another giant with hopes to drastically reduce its carbon footprint. The company has outlined intentions to reduce its net carbon footprint by around 50% by 2050. Such initiatives and commitments are driving major investments in renewables and in energy efficiency.
Many other industry players are joining arms in the formation of strategic alliances. OneTrust recently acquired Planetly, a German climate action and carbon management company. The acquisition added sustainability management to the OneTrust platform, as well as a team of 120 carbon accounting experts. These corporate commitments are creating real hope for a greener, more sustainable future.