Is emissions data as transparent as financial data? For many companies, the answer is no. However, regulatory pressures in locations worldwide require visibility into emissions along with internal pressures such as the Science-Based Targets initiative, investor pressure from the Carbon Disclosure Project, and evidence that sustainability initiatives lead to better financial performance. These drivers have led companies to seek to understand their carbon footprints, which include direct emissions from company-controlled sources, indirect emissions from purchased energy, and all other indirect emissions stemming from an organization’s value chain, such as purchased goods and services.
Corralling and understanding blended data from internal and external sources is a common challenge for enterprises, whether they are examining emissions, finances, marketing, talent management, or other areas. However, while companies typically have systems that track data from more traditional lines of business, repositories and analysis tools for carbon data are far less common.
Through visibility and analytics, companies are often able to turn internal and external data from their lines of business into valuable assets, and the same can be true for emissions data. Tools that track carbon information can provide insight into procurement emissions, overall eco-footprints, consolidated views of emissions, and sustainability management. Tracking the data is one thing, but how do companies know which factors actually contribute to emissions outputs?
Identifying and Tracking the Correct Carbon Data
Climatiq is a vendor that has amassed more than 200,000 emissions factors sourced through reputable government agencies and institutions, normalized and enriched with metadata and verified through a process of expert manual review, AI-driven outlier detection, audited by Climatiq’s scientists and overseen by a well-regarded panel. This data is offered through an API integration.
Recently, IFS, an ERP provider specializing in asset management software, announced a strategic partnership with Climatiq, which will integrate Climatiq’s carbon calculation engine and emissions database with IFS Cloud, an industry-focused cloud platform that unifies Enterprise Resource Planning (ERP), Enterprise Asset Management (EAM), and Field Service Management (FSM) functionalities.
Along with the Climatiq partnership announcement, IFS also launched its Emissions Management module within IFS Cloud, which offers prebuilt templates, standardized methodologies, and available directing in striving to automate emissions management calculations and embed sustainability into daily operations.
“By integrating Climatiq’s verified emissions factor database into Emissions Management in IFS Cloud, we enable organizations to embed sustainability into day-to-day operations, allowing them to adapt quickly, gain clear insights, and make better decisions directly within their core system, “ said Caitlin Keam, VP of Sustainability Applications at IFS in a press release.
As companies strive to meet regulatory and emissions transparency demandsfrom internal and external stakeholders, and seek the benefits of sustainability initiatives, partnerships that bring together deep emissions knowledge and advanced systems for greater data visibility will be crucial.
What This Means for ERP Insiders
Identify the driving factors your organization has for better emissions data visibility. There may be a number of regulatory demands as well as a number of other pressures that are compelling your organization to dig deeper into emissions data. There also may be genuine financial benefits, so look into how better emissions data could be a valuable asset.
Identify the sources that contribute to your total eco-footprint. Beyond the emissions from factories and company-owned assets, there are a number of indirect emissions sources that contribute to a company’s overall carbon impact. Regulators and stakeholders will be looking for that broader view, so it’s important to know how other factors such as purchased energy and procurement emissions that need to be tracked.
Explore vendor offerings that specialize in emissions data. Much like modules in your organization that focus on lines of business such as finance, HR, and marketing, there are vendor offerings that can help identify, track, and analyze emissions data.
