ESG & Diversity
Don McIntyre Image
Don McIntyre
Principal Solutions Architect

Mitigating climate risk for a sustainable future by harnessing the power of carbon accounting

February 27, 2024
0 min read
wind turbines generating sustainable energy

In a world grappling with the adverse effects of climate change, more and more organizations are recognizing the importance of mitigating climate risk and embracing sustainable practices.

The consequences of climate change — including extreme weather events, rising sea levels and supply chain disruptions — pose significant threats to businesses worldwide. As a result, effective tools for measuring, managing and reducing carbon emissions have become essential.

With the right carbon accounting software, organizations can overcome common hurdles and efficiently navigate the complex landscape of climate risk.

Understanding climate risk

Climate risk refers to the potential adverse impacts that climate change can have on an organization's operations, finances and overall sustainability.

From regulatory changes and physical risks (such as extreme weather events) to reputational and market risks, businesses face a multifaceted challenge in navigating the evolving climate landscape.

The urgency to address climate risk is not just a moral imperative, but also a strategic necessity, as investors, consumers and governments increasingly demand sustainable practices.

Carbon accounting software as a strategic asset

Carbon accounting software is designed to measure, monitor and report an organization's greenhouse gas (GHG) emissions throughout its value chain.

By offering a comprehensive view of a company's carbon footprint, this software enables businesses to find areas of improvement and implement targeted strategies to reduce emissions.

Here's how carbon accounting software can help organizations manage climate risk and gain a competitive advantage:

Accurate measurement and reporting

Carbon accounting software ensures precise measurement of an organization's carbon emissions, covering scopes 1, 2 and 3. Accurate reporting is crucial for regulatory compliance and building trust among stakeholders.

Identifying reduction opportunities

Carbon accounting software can perform a detailed analysis to identify areas of the business where emissions can be reduced. This includes energy efficiency improvements, supply chain optimizations and the adoption of renewable energy sources.

Regulatory compliance and reporting

Staying compliant with evolving climate regulations is simplified with carbon accounting software. It streamlines the process of collecting and reporting data, which reduces the administrative burden on organizations and helps them stay aligned with the major frameworks and standards such as CDP, GRI, DJSI, SASB, TCFD and GRESB.

Enhanced stakeholder relations

Demonstrating a commitment to sustainability through transparent reporting fosters positive relationships with investors, leadership, customers and employees. This, in turn, can enhance brand reputation and market positioning.

Cost savings and operational efficiency

Carbon reduction initiatives often lead to increased operational efficiency and cost savings. By optimizing energy use and resource consumption, organizations can improve their bottom line while reducing their environmental impact.

Gaining a competitive edge

As consumers increasingly prioritize environmentally responsible products and services, companies that proactively address climate risk gain a competitive edge. Carbon accounting software enables organizations to align with market trends and consumer expectations.

A purpose-built solution for today's climate risks

As climate risks continue to escalate, organizations must proactively address their carbon footprint to ensure long-term sustainability. Here, carbon accounting software emerges as a vital tool — not only for meeting regulatory requirements, but also for gaining a competitive advantage in an environmentally conscious marketplace.

By leveraging accurate data, identifying reduction opportunities and demonstrating a commitment to sustainability, businesses can position themselves as leaders in the transition to a low-carbon economy, contributing to a more resilient and sustainable future.

With over 15 years of experience delivering carbon accounting solutions to many of the largest organizations in the world, Diligent offers industry-proven, best-in-class solutions to help our customers reduce risk and gain a competitive edge.

Users can harness the power of automated data collection, cleansing, analysis and reporting to save critical time and resources, while customizable reporting templates and dashboards make it easier than ever to provide leadership with the insights they need to make faster, better decisions.

Diligent’s carbon accounting solution includes a library of global emissions factors. You can be confident that the data you input will automatically be calculated from over 70,000 emission factors covering over 120 countries. You can also be sure that your reports are always audit-ready, with complete calculation transparency and change logs featuring third-party certified calculations and specific audit-compliant user roles and permissions.

And with the new Diligent One Platform, you can get a combined view of your organization's broader GRC initiatives and how they relate to your climate reporting efforts, so you're always ready to act when new risks and opportunities appear.

To learn more about how Diligent's suite of climate accounting and GRC solutions can help your organization stay ahead of climate risk, request a demo today.


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