Has "carbon accounting" lost its meaning?
Is climate's latest buzzword creating clarity or confusion?
Hello friends,
Is “carbon accounting” the latest climate phrase to have lost its meaning?
As more corporates get savvy to the fact that ESG and climate disclosures are here to stay, many are scrambling to seek solutions to their carbon accounting challenges.
Carbon accounting has become a bit of a buzzword. But does that mean it doesn’t have value?
Is “carbon accounting” what your customers are looking for?
It depends on where your customers fall along the corporate climate journey. There are three different stages: consciousness, commitment, and contribution.
Those in the consciousness stage are becoming aware of material concerns and opportunities, taking inventory, and setting targets. Their focus is largely internal and label-driven. For customers in this category, carbon accounting is very well exactly what they’re looking for. They will care less about the how and more about the outcome.
Those in the commitment stage are following through on targets and commitments, and actively decarbonizing, disclosing, and doing the work. Customers in this category have already done their carbon accounting. What they're looking for from carbon software will be more granular, such as help with calculating the precise carbon footprint of each of their products. These customers will want information about how you do your analyses and how your reporting tools mesh with compliance standards.
Those in the contribution stage are expanding beyond their own climate footprint. They want to grow their impact and become market shapers through collaboration and innovation. Customers in this stage want up-to-date data backed by a detailed breakdown and technical report. Accounting for Scope 3 emissions is a high priority, and they will have already sought out life cycle assessments for their products. What they need is a platform that can facilitate ongoing supplier engagement and robust reporting capabilities.
What does it all mean?
The language you use to talk about your carbon accounting solution should differ based on how ‘climate-mature’ your customers are.
→ Companies in the consciousness stage are seeking easy entry points into their carbon accounting journey. Rather than focusing on the how, focus on the fact that your platform helps your customers get from point A to point B.
→ Companies in the commitment stage are looking for more granular solutions to their carbon accounting challenges. They seek a facilitator that can help them keep their emissions inventory up to date, adequately address their climate risk, and engage with Tier 1 and Tier 2 suppliers to calculate accurate product carbon footprints. Move beyond ‘big-picture’ and offer deeper, more specific insights.
→ Companies in the contribution stage are ahead of their peers and they’re proud of it. They’re seeking a partner that can help them maintain and expand their climate leadership status. They will resonate with messaging that is magnified in its promises.
Wrapping up…
Carbon accounting may be climate’s latest buzzword, but that doesn’t mean its definition goes out the window.
For those of us targeting more sophisticated players, carbon accounting is a catch-all phrase that might just get them in the door. What they need is what we like to call a ‘bridge’ offering — something small, affordable (possibly free), yet valuable that proves you have the technical and regulatory expertise required to make the accurate emissions calculations needed for something like a product carbon footprint or lifecycle analysis.
And for those working with smaller, more entry-level companies, specificity beyond “carbon accounting” isn’t necessary. In fact, going deeper may just scare them off.
A deep understanding of your customers’ ‘jobs to be done’ is what’s needed to define your carbon accounting offering.
But you already know that, friends.