There is ever growing pressure on businesses globally to redefine their operations toward more sustainable practices. The management of carbon emissions emerges as central in this pressure. PwC recently proclaimed that managing your emissions sustainably “builds brand health, attracts new customers, and builds confidence with your investors.” The same report states that the EU’s Taxonomy Regulation and the Corporate Sustainability Reporting Directive (CSRD) is increasing the types of disclosures companies need to take in order to remain compliant.
It is in the face of such pressure and stakeholder expectation that we realise the decarbonisation challenge is no longer about reducing emissions, but about precise and comprehensive accounting and reporting too. It is the kind of pressure that has led to many companies scrambling to improve their emissions reporting, but as they do so, their accounting, ESG, and HSE departments encounter the enormous complexity of extensive datasets from diverse sources.
Enter Artificial Intelligence.
Yes, a buzzword being utilised beyond its capabilities, but when leveraged adequately, the technology has proven to be transformative. One such example? Carbon accounting.
AI presents a ground-breaking approach to the challenges of emissions accounting, and is enabling companies to handle large-scale data with remarkable precision and efficiency.
The Complexity of Emissions Data
Emissions data comes in staggering volumes, from equally staggering sources. Many of us know the different types; with Greenhouse Gas Protocol (GHG) defining three types, or "scopes," of emissions for accounting purposes:
Scope 1 Emissions:
The direct emissions from owned and controlled sources, such as a company’s vehicles.
Scope 2 Emissions:
The indirect emissions from the generation of purchased energy, such as electricity, steam, or cooling used in company buildings.
Scope 3 Emissions:
These are all other indirect emissions not included in Scope 1 or 2 that are generated by a company’s value chain, including those linked to the lifecycle of products from suppliers.
The data sprawl is immense, especially from Scope 3 data, owing to numerous inconsistencies in vendor methodologies. Information resides across vast, disjointed systems - from manual entries at operational levels to automated IoT devices archiving their recordings in the cloud. GHG Protocol even requires two methods of Scope 2 emissions calculations: the location-based method, and the more modern market-based method where organisations apply “Energy Attribute Certificates” (EACs) and guarantees of origin to their electricity consumption.
This kind of data diversity and categorisation leads to discrepancies that can jeopardise the precision of calculations, which is a non-negotiable for compliance and strategic planning. It’s an overwhelmingly complex field that requires careful data collection, analysis, and interpretation.
AI's Role in Streamlining Data Processing
Artificial Intelligence has been heralded as a transformative force across private and industry sectors alike. In the realm of carbon accounting, AI plays an indispensable role in overcoming the formidable challenges posed by the sheer volume and variety of data. AI’s role is becoming crucial in streamlining the processing of emissions data. AI can support and enable the automatic categorization of each data point, and build a holistic picture of a company’s entire carbon footprint in a digestible format. Best of all, it can do this in a fraction of the time that humans can (as highlighted by the World Economic Forum in January this year).
By automating the integration of disparate data sources, AI can:
Reduce manual errors that can occur with human handling.
Enhance operational efficiency by speeding up data processing and reducing the time spent on manual data entry and capture.
Ensure emissions reports are credible and reliable, essential for meeting GHG regulatory compliance.
By implementing Artificial Intelligence in a company’s carbon accounting, the Boston Consulting Group believes that companies will not only increase productivity, but will actually improve their carbon footprint and reduce emissions by between 5 and 10%, the equivalent of 2.6 - 5.3 gigatons of CO2 if such technology were applied to all emissions globally.
Enhancing Emissions Calculations with AI
Precision in emissions calculation is critical, especially for complex Scope 3 emissions. As Forbes recently reported, enhanced calculation empowers organisations to navigate the gargantuan complexities of decarbonisation despite the vast oceans of data that such accounting produces. Calculations have proven to not only be accurate but also scalable across various organisational levels.
Businesses can now:
Achieve precise emissions tracking and reporting across all scopes.
Be provided with human-readable audit trails of their emissions.
Foster a culture of accountability and sustainability through easily accessible data, without ever compromising on accuracy.
These enhanced calculations are transforming how companies approach sustainability, enabling more robust, data-driven foundations for their environmental initiatives. These transformations are so dynamic that BCG predicts the impact will be as significant as between $1.3 trillion and $2.6 trillion in value generated through additional revenues and cost savings by the year 2030.
Today, AI technologies can:
Analyse categorised data alongside relevant emissions factors.
Incorporate emissions expertise to refine AI models, ensuring they align with accepted industry standards and accurately reflect real-world emissions.
By doing so, AI achieves the level of precision absolutely vital for companies to make informed sustainability decisions and to confidently report to the highest regulatory standards.
How Zeroe Supports Organizations to Calculate Emissions
Zeroe’s AI platform is the embodiment of the most advanced emissions accounting technology available on the market today. We’re able to empower organisations to navigate the aforementioned complexities of emissions despite their often overwhelming datasets. Zero’s AI carbon accounting technology ensures that calculations are not only accurate but also scalable across various organisational levels.
Thanks to the Zeroe tech stack, businesses can:
Achieve precise emissions tracking and reporting across all scopes.
Free up valuable resources to focus on strategic sustainability initiatives.
Foster a culture of accountability and sustainability through easily accessible data, without ever compromising on accuracy (and in fact improving it).
As a leader in AI-driven emissions management, Zeroe is transforming how companies approach sustainability, enabling more robust, data-driven foundations for their environmental initiatives. The deployment of such technology in emissions management not only meets the increasing regulatory demands and expectations of stakeholders but also heralds a new era of environmental stewardship. AI is now an indispensable ally, enabling precise, scalable, and efficient carbon accounting practices that pave the way toward a more accountable and environmentally-conscious future.
We invite you to explore the potential of Zeroe in enhancing your organisation’s approach to emissions management, and join the revolution toward a more sustainable and compliant future.
