Carbon accounting software - 4 key lessons from our members
Carbon accounting software plays an increasingly critical role in the modern business landscape.
As regulatory and stakeholder pressure grows, so too does the requirement for organisations to report against carbon emissions. This means accurate and efficient accounting practices are pivotal in corporate strategy.
Learn how 4 CitySwitch members selected a carbon accounting platform, lessons learnt and key considerations for an organisation on a similar journey.
A definition:
A carbon accounting platform helps a business calculate, track and manage their greenhouse gas emissions and carbon footprint. It can support with environmental reporting, sustainability goals and compliance with regulations.
Duratec Australia
Duratec Australia provides engineering, construction and remediation services, working across a range of industries.
It has more than 200 employees and a yearly turnover of $250 million.
Challenge and opportunity
In 2024, Duratec hired a consultant to assess its carbon footprint for the first time. The company recognised the need to take ownership and begin carbon emissions accounting, but it didn’t have a fully developed business case or set of requirements.
Approach
Duratec formed a cross-functional team to assess various platforms available in the market, with stakeholders representing different areas across the business including a business analyst, and sustainability and finance representatives. The aim of the group was to bring different perspectives together and review potential platforms based on:
supply chain decarbonisation capabilities
system integration
cost to the business and different pricing models
ability to meet specific reporting requirements, including viewing and comparing the emissions of sites across Australia.
Findings and impact
There’s an extreme variance in platform pricing and it was difficult to interpret differences. The team used a common metric to compare costs and assess risks based on factors such as lock-in contracts and extra costs for platform support.
Platforms need a data owner responsible for managing the data input, with supplementary access for users that just need to view the data. This created issues with pricing, as Duratec would be paying a licence for multiple users, but only a handful of people would use the platform regularly across a large number of projects.
No platforms had compatible integration with Duratec's finance systems, which limited opportunities for automated data collection – a key criterion for the company.
Internal stakeholders were concerned about the time it would take to enter and manage data on the platform. Equally, they found the company needed a baseline understanding of its emissions profile before using the platform to ensure they could interpret and assess the data correctly.
After evaluating their options, Duratec opted to work with a specialist consultant who provided tailored technical support. Given the complexities of scope 3 data collection, management and reporting, Duratec may consider using a platform in the future to align with mandatory climate related financial disclosure legislation.
Lessons
Duratec's evaluation process confirmed how critical it is to include diverse internal stakeholders in the selection and uptake of carbon accounting platforms.
Different stakeholder perspectives helped garner a real understanding of the functional and business requirements before market evaluation and ensured the solution (platform or otherwise) met those needs.
Airmaster
Airmaster is a large building services company that provides heating, ventilation, air conditioning and refrigeration (HVAC&R) management, smart building solutions and fire services across Australia, New Zealand and south-east Asia.
Challenge and opportunity
Airmaster was coming under increasing pressure from clients to demonstrate sustainability and company action in response to climate change.
Initially, Airmaster attempted to use spreadsheets to calculate scope 1 and 2 emissions but quickly recognised the team would need external support.
The company didn’t have capacity to create a dedicated sustainability role. It recognised the need to obtain an advisory service to effectively prepare for increasing regulatory and market requirements.
Approach
Airmaster established an internal technical review committee that developed a scope of requirements and request for quotation. The criteria included:
a simple and approachable user interface, which could be used by employees without a sustainability or technical background
a centralised place for managing information, without the need for technical or detailed reporting functions
further strategic advisory services that could help Airmaster understand future reporting requirements and technical support.
Findings and impact
Airmaster selected a platform that provided a starting point, and only included features and functionality it would use.
The company has taken a phased approach: it measures scope 1 and 2 emissions and is gradually increasing the number of scope 3 categories it measures.
Airmaster plans to progressively improve data quality and use primary supplier data. It built additional hours into its contract for strategic advisory support, which has been very important in building capacity to calculate scope 3 emissions.
Having established a baseline carbon footprint through the platform, Airmaster has begun building an internal business case for developing internal targets and emission reduction efforts. Benefits include:
responding to increasing tender and contract requirements to provide emissions data
communicating its environmental social governance (ESG) approach to prospective employees and apprentices. Airmaster recognised reducing carbon emissions as critical to attracting and retaining talent, particularly among new generation apprentices.
Lessons
It's easy to underestimate the behavioural change, time and resources required to liaise with internal stakeholders and upload data into a carbon accounting platform.
Different internal data owners need to buy into the process and some data systems can be hard to navigate such as energy company customer portals.
It can only manage what it measures. Having a credible carbon inventory has allowed Airmaster to set targets and communicate benefits from a range of decarbonisation efforts – such as solar upgrades and vehicle fleet trials – to the employees and the board.
Company A (anonymous)
Company A (chose to remain anonymous) is a large personal injury claims manager with more than 200 employees and a turnover of less than $250 million.
Challenge and opportunity
Company A found limitations with Excel-based applications to calculate and track emissions and sought to streamline its carbon emission tracking process.
After trialling a smaller platform with limited functionality, Company A realised the business required a platform that offered more advanced capabilities to compare tenancy sites, support business decisions and ESG reporting.
Approach
Company A chose enterprise-grade software that it was already using for ESG and board reporting. It could be expanded to provide effective carbon accounting.
The platform agreed to migrate 2 years’ worth of data from Excel spreadsheets and support immediate analysis of historical trends within dynamic reports and charts.
Findings and impact
Company A found it challenging to obtain technical support to resolve data issues. There were time differences and capacity restraints between the platform’s Australian-based sales team and the overseas software technical support team.
Data migration was significantly delayed and several discrepancies were identified following automated data mapping
Company A had to manually export reports and generate comparative site graphs due to the lack of customisation within dashboard reporting functions.
Although Company A purchased software to generate cost savings, the platform hasn’t reduced overall employee time to calculate, report and manage carbon emissions.
Looking ahead, Company A remains cautiously optimistic, hopeful that the platform will make sustainability reporting easier and that continued refinement and adaptation of the platform’s capabilities will lead to greater value and return on investment in time.
Lessons
It's important to conduct a thorough needs assessment and establish clear communication with platform providers before making commitments.
Ask providers for ongoing 1:1 technical and advisory support to help users without a sustainability background to use the platform – reduce the need for the platform to be managed by a single data owner.
Company B (anonymous)
Company B is a small to medium-sized contaminated land advisory and project management business with more than 50 employees and a turnover of less than $200 million.
Challenge and opportunity
Company B was motivated to start calculating carbon emissions and obtain Climate Active Carbon Neutral certification.
Approach
It used a newly established platform that had attracted credible industry partnership and support.
The company integrated its financial system with the platform. Its inventory was edited to ensure spend was mapped to correct business categories within the software.
The platform provided options for carbon offsetting in line with its Climate Active certification.
Findings and impact
The chosen platform offers integration with Xero, which automates the conversion of organisational spend into carbon emissions.
Over time, the platform has provided more options for users to identify anomalies based on business knowledge and ensure spend is mapped against the correct industry sector.
Climate Active certification requires organisations to obtain independent third-party validation of their carbon calculations. Regular reporting and independent auditing or verification of the carbon account, emissions over time, and carbon offsets are required under the Climate Active Carbon Neutral Standard for Organisations. While Company B had to manually prepare reports outside of the platform to meet audit requirements, the platform has stated it has improved its design to support clients throughout specific processes.
Overall, Company B is satisfied with its chosen platform, finding it aligns with current needs – primarily tracking emissions to meet internal targets and achieving Climate Active accreditation.
Lessons
Platforms evolve and improve. Significant improvements to the look and feel of the user interface, manual mapping capabilities and reporting were noted and appreciated.
Key points to remember
Carbon accounting platforms can support businesses but choosing one that’s right for you can be tricky.
If you're looking for a carbon accounting platform, here are some ideas to consider from other CitySwitch members.
Carbon accounting always involves time and resources, even when using a digital solution.
Although a digital solution such as a carbon accounting platform offers many efficiencies and opportunities for automation, they aren’t a ‘set and forget’.
Across upfront data collection, maintenance and reporting, some level of manual checking, validation and data entry is often required. This will require time, resources, and usually, a person or team within an organisation to be responsible for managing the platform.
Thorough needs assessment and communication is critical to success.
Conducting a thorough needs assessment and establishing clear communication with platform providers around your organisational needs and expectations are essential before committing to a platform solution. This includes consideration of:
the internal users of the platform and who’ll be responsible for managing data over time
integration of the platform with existing critical systems, for example, financial and accounting
ease of use and accessibility
how data will be migrated and how long it will take, particularly through the introductory phase.
Get support
To help you find a suitable carbon accounting platform, we've developed this guide to help you:
identify your business needs – what do you need to know?
select your carbon platform – questions to ask a provider before finalising your decision.
Got questions?
We'd love to help you. Contact one of our program managers .