As decarbonization management and sustainability initiatives intensify, the visualization and reduction of CO2 emissions required of companies is becoming increasingly important. Therefore, this article will explain the main points to consider when comparing CO2 emission management systems for visualizing CO2 emissions.
A CO2 emission management system is software, tools, or systems that enable companies and governments to understand, visualize, manage, and reduce their CO2 emissions. By using a CO2 emission management system, it becomes possible to calculate CO2 emissions from fuel consumption and electricity usage, and to collect and analyze data. Furthermore, it allows for tracking progress towards reduction targets and identifying highly effective reduction measures, thus enabling more efficient efforts to reduce CO2 emissions.
Benefits of CO2 emission management systems
Visualization of environmental impact
By implementing a CO2 emissions management system, you can see at a glance the CO2 emissions of the entire organization, as well as the emissions of each department, facility, location, store, or business unit. This makes environmental impact visible, leading to a change in awareness and the implementation of effective reduction measures.
Cost reduction
By utilizing the analytical functions of a CO2 emissions management system, it is possible to identify effective measures to reduce energy consumption and emissions, such as electricity and fuel. This leads to a reduction in wasteful electricity use and energy costs, positively impacting business operations.
Streamlining the creation of environmental reports
When companies prepare environmental reports, using a CO2 emissions management system allows for efficient data collection and organization. Furthermore, by utilizing the automatic data update function within the CO2 emissions management system, it becomes possible to create reports that always reflect the latest information.
Responding to environmental laws and regulations
By utilizing a CO2 emissions management system, compliance with environmental laws and regulations can be streamlined. Specifically, it becomes easier to collect and report data that complies with legal regulations, enabling companies to fulfill their legal obligations.
Comparison points of CO2 emission management systems
GHG Protocol
When choosing a CO2 emissions management system, the first thing you should check is its GHG (greenhouse gas) calculation and management capabilities. Make sure the system can calculate emissions for Scope 1, Scope 2, and Scope 3 (Categories 1-15) in accordance with the GHG protocol.
Streamlining calculation
Calculating CO2 emissions involves handling a large amount of data, so efficiency is essential. When choosing a system, check whether it has features such as integration with ERP and accounting systems, text data import, AI-powered automation and labor-saving functions for data entry and calculation, and analytical capabilities. It is also important that the system has multiple efficiency features, such as data integration in addition to on-screen input. Furthermore, it is necessary to check which "emission intensity databases" can be used for calculation. By taking these measures, you can reduce time and effort and manage CO2 emissions smoothly.
Disclosure and reporting function
Please check the extent to which the CO2 emissions management system can handle the reporting function, which is essential for environmental information disclosure. The key point is whether it supports the formats of the TCFD (Task Force on Climate-related Financial Disclosures), CDP (Carbon Disclosure Project), the Global Warming Countermeasures Act (Act on Promotion of Global Warming Countermeasures), and the Energy Conservation Act (Act on Rationalization of Energy Use and Transition to Non-Fossil Energy, etc.).
Supply chain emissions management
Reducing CO2 emissions is important not only for your own company but also for the entire supply chain. Let's examine whether your CO2 emissions management system can efficiently collect and understand emissions from the supply chain (especially Scope 3 Category 1 "Purchased Products and Services" and Category 11 "Use of Products Sold") and consider effective reduction measures.
Support for overseas locations
For companies with overseas branches, it is crucial to choose a system that is suitable for local laws, regulations, and customs. Check whether the system can manage emissions from overseas branches, whether it supports multiple languages in the user interface, and whether it can collect, calculate, and manage data in accordance with overseas laws, regulations, and emission intensity databases.
Carbon offset function
Carbon offsetting is a mechanism that allows companies to offset their CO2 emissions by investing in other carbon reduction projects if they are unable to reduce their own emissions. Check how many offset projects your CO2 emissions management system supports, and whether it is easy to calculate and trade offset amounts.
Carbon Management
When choosing a CO2 emissions management system, carbon management features are also an important comparison point. Specifically, check whether it can compare reduction targets with actual results, simulate emissions reductions, and analyze the effectiveness of measures. This will allow you to plan and implement more effective reduction strategies.
Decarbonization management and sustainability initiatives
It is also important to consider whether the CO2 emissions management system has the functionality to support decarbonization and sustainability management goals. Ideally, it should include features useful for a company's environmental and sustainability strategies, such as goal progress management and scenario analysis.
SaaS (Software as a Service)
SaaS is gaining popularity as a way to implement CO2 emission visualization systems. SaaS systems are delivered on the cloud, allowing for flexible operation while keeping initial investment costs down. In addition, system updates and backups are performed automatically, reducing the effort required for operation and management. By choosing a SaaS-compatible system, efficient CO2 emission management can be achieved.
Customization available
As mentioned earlier, while SaaS-based CO2 emission visualization systems are increasing, the flexibility of system customization tailored to each company's characteristics and strengths is a crucial point that should not be overlooked. The ability to accommodate a company's unique management items and reports can directly lead to differentiation from competitors.
summary
When choosing a CO2 emissions management system, consider key features such as GHG protocol calculation and management, calculation efficiency functions, disclosure and reporting functions, supply chain emissions management, support for overseas locations, SaaS compatibility, decarbonization management and sustainability support, carbon offset functions, and carbon management. Also, prioritize your company's decarbonization strategy, such as whether calculation and visualization functions are sufficient or if CO2 reduction and offsetting are also necessary.
Depending on the company, certain functions may be particularly important, or there may be constraints on system operation and budget. Therefore, choosing a system that suits your company's needs is paramount. By comparing the features and functions of each system and implementing the optimal CO2 emission management system, you can promote more effective decarbonization and sustainability management.
At booost technologies, we have the No. 1 sales share* CO2 emission management system "booost GX"This can streamline the management of emissions from suppliers.booost SupplierWe offer the following services. If you are considering a CO2 emission management system or a tool for visualizing CO2 emissions, please feel free to contact us using the information below.
*Source: Deloitte Tohmatsu MIC Research Institute, "Market Trends of ESG Information Disclosure Solutions Promoting Environmental Management, FY2022 Edition (Published February 2023) https://mic-r.co.jp/mr/02670/"
Vendor sales/market share trends for ESG information disclosure solutions as a whole, and vendor sales/market share trends for GHG emissions visualization solutions.