In the rapidly evolving landscape of environmental, social, and governance (ESG) commitments, organizations are facing heightened scrutiny on emissions compliance. The convergence of net-zero targets, consumer demands, TCFD-aligned rules, industry-specific pressures, and voluntary ESG disclosures has created a complex web of responsibilities for businesses. While ESG initiatives often stem from reputational concerns, it’s crucial not to lose sight of core compliance responsibilities.
In the pursuit of net-zero and carbon disclosures, organizations are placing a strong emphasis on emissions management. Fortunately, a plethora of digital solutions are available to streamline this process. From financed emissions software to EHS software, these tools enable organizations to collect, aggregate, and clean emissions data. They also facilitate calculations, report generation, and permit compliance, making emissions compliance a more manageable task.
In this article, we’ll discuss the regulatory landscape, explore tech solutions that empower organizations, and consider what software functionalities allow organizations to progress toward their ESG commitments.
The Impact of Emissions Regulations on Technology
In recent years, more and more regulations have been put in place to manage emissions. In 2020, there were more than 1,700 regulatory developments in air emissions globally. This shifting regulatory landscape has become a driving force, compelling organizations to reevaluate their strategies and adopt advanced digital tools for emissions compliance. The consequences of non-compliance, including escalated fines and heightened reputational risks, have spurred a significant paradigm shift. Organizations are recognizing the need to move beyond traditional approaches and are turning to comprehensive software solutions that offer a multifaceted approach to compliance challenges.
As regulations demand an unprecedented level of granularity in the data collected, reliance on digital tools has become more necessary than ever before. These tools support every facet of compliance management, from data collection to reporting. The finesse of these solutions lies not only in their capacity to keep organizations abreast of the ever-evolving regulatory landscape, but also in their intelligent capabilities.
Software solutions leverage predictive analytics to anticipate emissions reduction strategies, ensuring a proactive stance in environmental responsibility. They also facilitate the seamless collection of accurate real-time data, transforming compliance from a reactive task to a dynamic and forward-thinking process. The intersection of regulatory evolution and technological innovation is reshaping how organizations perceive and execute their emissions compliance strategies–and this trend will only continue as these software tools grow more sophisticated.
For more information on 2024 EHS&S trends, check out our blog, Top EHS Trends of 2023 and What to Expect in 2024
Market Adoption and Emerging Technologies
The market is responding to the growing pressure on companies to manage emissions. Companies know that emissions management won’t be possible without investing in management software. In fact, according to a survey conducted by independent research firm, Verdantix, 42% of firms plan to increase spend on GHG monitoring in 2024. Furthermore, 28% of firms plan to increase spend on air emissions monitoring next year as well.
As demand rises and software continues to develop, emerging technologies like digital sensors and artificial intelligence (AI) are gaining traction for emissions management. The trend toward software functionality and market innovation is expected to grow even more in 2024 and beyond.
Software Functionality & Market Innovation
Emissions management software follows a structured data flow, from data aggregation to assurance, calculation, and reporting. The data aggregation stage includes online forms, meter readings, sensors, and leveraging APIs. In the data assurance stage, missing data is filled in and data audits are conducted to ensure accuracy. In the final stages, data is run through key formulas, then auto-populated into templates and regulatory reports for easy analysis.
The functionality of these software tools includes the ability to sort and filter data, as well as a library of emissions factors and in-build calculations for prominent emissions regulation. Innovation in software solutions include robust Scope 3 management, expansive data sets, and integration with wider enterprise systems.
What To Consider When Choosing Emissions Software
Selecting the right software solution for an organization is crucial, since it affects their ability to track and meet their ESG goals and regulations. The first question to ask is whether the software offers GHG functionality alone, or both emissions and GHG functionalities. EHS software management systems, known for their broad functionality, excel in aggregating data and regulatory reporting. Which is why they’re typically a top pick for firms with multiple needs.
When choosing a software vendor, there are multiple factors to consider. It’s important to know about industry-specific needs, and how the software can accommodate this. Software usability, tech support, and the complexity of emissions compliance are also critical considerations when selecting a vendor. Remember to consider what’s on the horizon for your organization in the next few years, and choose a software vendor that can adapt to emerging needs.
Staying Compliant In The ESG Age
Navigating the complex terrain of emissions compliance can be difficult. But with digital solutions, organizations can ensure they’re adhering to both regulatory compliance and progress toward ESG goals. As the regulatory landscape evolves, staying informed on core compliance mandates and using the right technology is paramount for success.
Learn more about emissions solutions and EHS software in our on-demand webinar with Verdantix, Emissions Compliance in the ESG Age, featuring Tom Brown, Senior Analyst at Verdantix. Discover more about Cority’s EHS software and how it helps businesses navigate emissions challenges and regulatory requirements.
